term life insurance – anonymous
Hi ! Gen X living with my awesome retired Mom while she is going through some medical issues. I signed her up for your emails. We also listen to your podcast when we drive to doctor’s visits together. I am on disability for the past 10 yrs after a workplace accident. Two Questions
1) Is it worth it selling my term life insurance to pay medical bills and student loans? How do I find a reputable company to get the process started?
2) Funny Story. The annuity that I was misled into is actually doing okay. How or should I get out of it and move to an IRA or 401k? Thanks so much for all you do Terry. Can I please stay anonymous as my work mans comp case is still pending .
Terry Says
Thank you for listening. Gosh, you have a complicated situation. For starters, I’m not sure how the sale of a term insurance policy would be treated. I’m sure you know that for SS Disability for 2026, the SGA limit is $1,640 per month for most people. SGA stands for substantial gainful activity. And I’m just guessing, since they would send you a 1099 for any money taken out of your term policy, that you would exceed the limit and possibly put your disability check at risk!
Second, there are absolutely ways you can get out of your student loans if you are disabled. Please contact Rae Kaplan at https://www.financialrelief.com/ She is the one person who could figure this out. Please use my name and tell her that if she can get these loans forgiven because of disability, I will be delighted to write a column! (And I wouldn’t use your name, of course.)
Third, I don’t know what annuity you were sold. But don’t just look at the bottom line since that is never the withdrawal value! If you want to write back with more details, I can point you to someone who can review it. But it is doubtful that you could “move” the money into anything else without paying taxes — again, triggering a risk for your disability.
