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Still contributing to VUL's at age 80?
Old 05-07-2011, 09:40 PM   #1
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Still contributing to VUL's at age 80?

I just don't see the benefit of parents in their 80's in continuing to pay $400+ in quarterly premiums for insurance that hasn't appreciated much past the $50K face value. My question to them is "What are they insuring against?"

They have enough to live on and their funerals. I don't understand anything other than term insurance, and I certainly wouldn't be buying that at their age. Maybe theirs is different?

Any help on how to try to convince them to reconsider keeping the policy?
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Old 05-07-2011, 09:48 PM   #2
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Originally Posted by gindie View Post
Any help on how to try to convince them to reconsider keeping the policy?
In general, it is counterproductive and also annoying to try to convince people of something. Doing this implies that they are too stupid to know what is good for them, and most adults, even older adults, are not fond of this implication.

Ha
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Old 05-07-2011, 11:48 PM   #3
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Originally Posted by gindie View Post
I just don't see the benefit of parents in their 80's in continuing to pay $400+ in quarterly premiums for insurance that hasn't appreciated much past the $50K face value. My question to them is "What are they insuring against?"
Any help on how to try to convince them to reconsider keeping the policy?
What you have here is a difference of opinion, and it's their money.

Here's the questions they'll ask you:
"Why shouldn't we give you a life insurance benefit after we're gone?"
and
"Is there something else we should be saving the money for or spending it on?"
and
"Exactly why is any of this your business?"

If you don't have good answers for those questions then it's probably not worth raising the issue in the first place.

Another option would be to ask something like "My insurance agent is suggesting that I'd want to pay $400/quarter for a VUL policy for the rest of my life. Any idea why I'd want to do that?"
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Old 05-08-2011, 06:14 AM   #4
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Did they buy it as an investment or as a life insurance policy (to hold till death)?

If they bought it as a life insurance policy (to hold till death), that ship has probably sailed. You may just be complicating their life (from their perspective)...

IMO - unless they were getting ripped off.... or they needed the money now.... I would stay out of it!

If you feel compelled to give them financial advice.... Make sure you understand the contract and their goals before you give them advice...
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Old 05-08-2011, 11:57 AM   #5
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Originally Posted by haha View Post
In general, it is counterproductive and also annoying to try to convince people of something. Doing this implies that they are too stupid to know what is good for them, and most adults, even older adults, are not fond of this implication.

Ha
How true! In my experience it gets worse with age.
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Old 05-08-2011, 12:12 PM   #6
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"Why shouldn't we give you a life insurance benefit after we're gone?"
From a possible estate tax prospective, life insurance can ensure the base amount of the estate be passed on, without taxes - based upon current tax considerations.

There may be a reason why they did it in this manner.
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Old 05-08-2011, 12:22 PM   #7
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Quote:
Originally Posted by haha View Post
In general, it is counterproductive and also annoying to try to convince people of something. Doing this implies that they are too stupid to know what is good for them, and most adults, even older adults, are not fond of this implication.

Ha
I agree so much with this, but I have trouble reconciling it with the fact that sometimes it works. For example, I gave my older sister Younger Next Year, and the response I got was "I've got to hand it to you, Al, you've really changed my life." My thoughts in response were "Oh, great, now I'm never going to learn to stop trying to convince people of things..."

In trying to figure out why it's possible sometimes, here's one thing:

NEVER WORKS
"You're wrong, your way is stupid. What you should do is..."

SOMETIMES WORKS
"If I were in your shoes, I'd feel exactly the same way you do. However, I've found that what works for me is..."
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Old 05-08-2011, 01:30 PM   #8
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I agree so much with this, but I have trouble reconciling it with the fact that sometimes it works. For example, I gave my older sister Younger Next Year, and the response I got was "I've got to hand it to you, Al, you've really changed my life." My thoughts in response were "Oh, great, now I'm never going to learn to stop trying to convince people of things..."

In trying to figure out why it's possible sometimes, here's one thing:

NEVER WORKS
"You're wrong, your way is stupid. What you should do is..."

SOMETIMES WORKS
"If I were in your shoes, I'd feel exactly the same way you do. However, I've found that what works for me is..."
Good point. In any social act, one's own skill is always so important. And for me at least, a continuing subject of rueful review.

Ha
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