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Old 11-26-2016, 01:30 PM   #21
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I've always understood that such policies were very limited for the first two years.
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Old 11-26-2016, 03:41 PM   #22
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Originally Posted by boaski View Post
I consider all this talk kind of dishonest I am proud I have my own money without having to scam someone.
The insurance companies make their money because the masses who generally get this don't die early. The banks are the ones who subsidize these policies so they can get their loans paid off (of sold to someone else).
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Old 11-26-2016, 04:01 PM   #23
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Originally Posted by mystang52 View Post
I just looked into these policies. I have a 20-year term policy that expires next month. It's guaranteed renewable, with a few options. The policies are indeed guaranteed issue. The premiums are higher than "standard" but that should be no surprise. But, the premiums were not exorbitant. Both of the ones I looked at only refunded the premium if death occurs in the first 2 years of the policy. In my case, it was better to stay with my current insurer. I should mention that due to my own medical condition I am uninsurable so have limited options.
Sorry to read of your situation; I wish you and your wife the best.
You might want to check with your current term ins. co. to see if your term policy has a guaranteed conversion option into a permanent/whole life policy. Many term policies do. Those conversions are guaranteed, and pay the death benefit immediately and the premiums are much, much better than the guaranteed issue plans discussed earlier. If you cannot convert, then you are wise to keep the policy you have.
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Old 11-26-2016, 05:05 PM   #24
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Originally Posted by brucethebroker View Post
You might want to check with your current term ins. co. to see if your term policy has a guaranteed conversion option into a permanent/whole life policy. Many term policies do. Those conversions are guaranteed, and pay the death benefit immediately and the premiums are much, much better than the guaranteed issue plans discussed earlier. If you cannot convert, then you are wise to keep the policy you have.
Thanks. We really don't need life insurance anymore, but it was a futile effort trying to convince DW. I did renew with my current insurer for a decreasing term policy - same premium as now, obviously a lower death benefit, but that benefit is fixed for another 19 years, and gives a sense of relief to DW.
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Old 12-02-2016, 08:30 PM   #25
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Just wanted to thank everyone (except boaski) for their very kind replies. I received a quote where the premiums were MUCH higher than were implied on the infomercial. The reply indicating yearly premiums of about 1/7 of the insurance amount with a 2 year "return of premium" clause was about right. It made little sense in our situation.

I am grateful for the information provided by everyone. My thinking isn't always straight during this and it's nice to have someplace to ask questions where I know I'll get knowledgeable replies.
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Old 12-03-2016, 08:20 AM   #26
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Thanks. We really don't need life insurance anymore, but it was a futile effort trying to convince DW. I did renew with my current insurer for a decreasing term policy - same premium as now, obviously a lower death benefit, but that benefit is fixed for another 19 years, and gives a sense of relief to DW.
Yeah, I got a $.5M 30 year term life policy when I was 44. I've tried to convince DW we don't need it anymore, but she really wants to keep it. Says it makes her feel more secure. I personally think she's planning to bump me off when I'm 73 or so and can't help around the house as much anymore.
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Old 12-03-2016, 01:41 PM   #27
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I personally think she's planning to bump me off when I'm 73 or so and can't help around the house as much anymore.
Tell her there is usually a exemption clause in the policy that if she does that she cannot collect on the insurance. Some states make it law. Not to mention that she probably wouldn't be able to spend it anyway because she'd likely be a long-term guest of the state.
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Old 12-03-2016, 01:59 PM   #28
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I am so sorry to hear about your wife. Both my Dad and a good friend of his were told they would not live very
long with the illnesses they had so they both took out life insurance. The friend died in 3 years and his wife collected. My Dad lived 14 years and my Mom had to make a decision to renew or not and I told her too so she would get her $ back. His quality of life was so bad that it was not a blessing.
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Old 12-05-2016, 08:33 PM   #29
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Snidely, I'm so sorry you are dealing with this. Prayers for you.

More than once, I have heard Dave Ramsey tell people in similar situations to take out a a mortgage or refinance & take the mortgage life they push on you.

Best of luck to you.
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