Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Conversion of Life Insurance
Old 07-30-2013, 08:11 AM   #1
Thinks s/he gets paid by the post
bUU's Avatar
Join Date: Dec 2012
Location: Georgia
Posts: 1,707
Conversion of Life Insurance

Mostly as an educational endeavor, I would love to read people's reactions to the attached offer my spouse received on leaving her previous job.
Attached Files
File Type: pdf ConversionOfLifeInsurance.pdf (330.0 KB, 20 views)

bUU is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-30-2013, 11:58 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 13,197
In my experience this is fairly common. the first question that you need to ask yourself is do you need your spouse to have life insurance coverage? If the answer to that question is yes, then the next step would be to compare this alternative with other alternatives (such as term life if your need for coverage is not a permanent need).

If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is offline   Reply With Quote
Old 07-30-2013, 05:57 PM   #3
Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 3,636

Also: Your spouse's health could be a major issue. I'd expect that the pool of people who convert group life contains an unusually high fraction of unusually poor risks. For the insurer to make money, it needs to charge a rate that covers the entire pool, healthy and unhealthy.

If you need the insurance, and she's in unusually poor health, this may be a good deal. Check the rates on various alternatives.

If you need the insurance, but she's in normal good health, she can probably get a better deal elsewhere.
Independent is offline   Reply With Quote
Old 08-01-2013, 11:50 AM   #4
Thinks s/he gets paid by the post
2B's Avatar
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Buying life insurance through an employer has always been a bad deal when I've looked at it. The rates are always higher than what I could get on the open market. It's obvious the only people that should buy it are people with health risks.

One other problem is that you typically lose the insurance if you leave your job. Even if your health is bad you need to "die in the saddle" to collect on the higher cost insurance. Your wife is getting an opportunity to convert but I am sure it is at an even higher cost.
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 08-01-2013, 12:10 PM   #5
Thinks s/he gets paid by the post
kcowan's Avatar
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 4,444
Send a message via Skype™ to kcowan
I was offered to continue my "key man" insurance when I retired. I had 60 days to decide. Guaranteed with no tests. I opted for a brand new policy because I had begun intensive exercise. The rate was much lower.
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 08-02-2013, 04:09 AM   #6
Thinks s/he gets paid by the post
bUU's Avatar
Join Date: Dec 2012
Location: Georgia
Posts: 1,707
Thanks for the insights.

bUU is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 10:00 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.