Term life insurance question

[HoosierDaddy]

I screwed up and apparently will outlive a term life policy. Got a notice saying effective the start of May, policy will automatically renew and my premiums will increase more than 10 fold. It also said existing bank authorizations will be canceled and provided a form to set up new authorization.

Thinking I will notify them I don't want the policy renewed but first wondering if there is some way to leverage some kind of rebate in exchange. I mean a 1000%+ increase in premiums is intended to get rid of me or reap a windfall. If the former, they must think I'm likely to kick it soon. and may offer some incentive to leave voluntarily?

Or wonder if I can sell the remaining 5 weeks of my policy to the advertisers on TV for much. LoL

Sponsored

 

[jcttraveler]

I am NOT a financial advisor, but for sure you don't want to keep the current policy and it's new rates. I've heard about term life policies having a cash value, but it's probably pennies on the dollar a call or an email to a company offering those services will inform you of the details (as well as get your contact info on a spam list for sure.)

Do you still need a life insurance policy? I got my term policy when I got married to help my spouse cover house payments and get on her feet. Now almost 30 years later, house is paid off, no kids thus no education expenses to worry about. A career of saving has created an investment portfolio. Assuming I live a few more years when the term expires, I won't miss it.

If you determine you need/want the money, starting over with a new term life is probably the way to go. You'll likely to die before 90, so find a term that covers that period.

 

[JimC]

Term insurance has no residual cash value. You essentially are using the insurance to cover "what if I die during this time period, how will I provide for my family". But you aren't building anything in the policy like permanent insurance does; that's why term insurance is cheaper. There is nothing to rebate because you bought a product, a life insurance contract for a term of years, and that term of years has now ended. That contract was fulfilled.

When you reach the end of the term you contracted for, the premium will go up if you want to continue that policy. It has nothing to do with the company trying to get rid of you, the contract you had expired before you did. If you renew it is for a new contract and new rate.

You can say, "no thanks, I don't want to continue" and walk away from the renewal for a new term, and then shop around to see if another company has something better.

 

[HoosierDaddy]

Thanks. guys.

I have no intention of renewing, just wondering if there are ways to end it that are more advantageous. Doesn't sound like it.

I have no need for term life insurance and haven't for a long long time. But my financial advisor suggested decades ago I not cancel it. No doubt his knowledge of my lifestyle was superior to the insurance company's and not a good idea to lose out on an almost sure thing while premiums were peanuts.

 

[Balr14]

I took a whole life policy for $50k many years ago, when that was a lot of money, about the same as more than $500k today. I still have the policy. I could have cashed it in years ago, but it doesn't have much cash value and premiums are about $75 a year. Sooner or later, somebody in my family is getting that $50k!

Sponsored