ERD50
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
When I was young and stupid (yes, I'm now old and stupid!), I was sold this insurance policy. I bought all the usual lines. I gained some smarts along the way, knew I didn't want to put any more $ into it, so I just let the premiums get paid from the policy balance. My records are sketchy, but I know I haven't paid a dime in many years, so I've been sort of thinking of it as a pre-paid policy.
It has now dwindled to zero (no surrender value), and is due to lapse. The original premiums were $404 for $100,000 face value. I am now 60 YO.
They want $181.03 to keep it in force, I just called, and he said the premiums would be $900 annual for the next year. Yes, they can be expected to increase, but he really could not share any info over the phone. He was going to mail me something that would show two years worth of premiums.
So on one hand, ~ $1,000/year for $100,000 coverage would be a 'deal' unless I live another 100 years (obviously way-over-simplifying for the time value of money and the premium increases). But even with the time value of the money, it would seem like good odds. So then it boils down to what the premium increases might be.
Anyone have any experience or insight into what premium increases might be expected?
True, I don't 'need' the insurance, but if keeping it in force makes good economic sense for my heirs, I should do it. But I don't really expect an insurance company to hand me any sort of a 'deal', so my gut says let it go. I could just consider the earlier payments I made like they were payments on a term life insurance policy, and that would have provided some value when I was the breadwinner. So just accept it, and be glad I paid for some protection that I ended up not needing?
Let it go? Or keep paying on it? Any input is appreciated.
C.M. Life Insurance company (Massachusetts Mutual Life Insurance Company), if that matters (I didn't check yet, I'm just assuming they are strong)
-ERD50
It has now dwindled to zero (no surrender value), and is due to lapse. The original premiums were $404 for $100,000 face value. I am now 60 YO.
They want $181.03 to keep it in force, I just called, and he said the premiums would be $900 annual for the next year. Yes, they can be expected to increase, but he really could not share any info over the phone. He was going to mail me something that would show two years worth of premiums.
So on one hand, ~ $1,000/year for $100,000 coverage would be a 'deal' unless I live another 100 years (obviously way-over-simplifying for the time value of money and the premium increases). But even with the time value of the money, it would seem like good odds. So then it boils down to what the premium increases might be.
Anyone have any experience or insight into what premium increases might be expected?
True, I don't 'need' the insurance, but if keeping it in force makes good economic sense for my heirs, I should do it. But I don't really expect an insurance company to hand me any sort of a 'deal', so my gut says let it go. I could just consider the earlier payments I made like they were payments on a term life insurance policy, and that would have provided some value when I was the breadwinner. So just accept it, and be glad I paid for some protection that I ended up not needing?
Let it go? Or keep paying on it? Any input is appreciated.
C.M. Life Insurance company (Massachusetts Mutual Life Insurance Company), if that matters (I didn't check yet, I'm just assuming they are strong)
-ERD50
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