Gerber Life Insurance - Teen now 21 now what?

[DHK]

Life insurance isn't like car insurance. You don't have to have just one. You can have as many policies as makes financial sense to buy and the insurance companies will issue.

I wonder if I should adapt the Lay's Potato chip slogan for my own? "Betcha can't have just one!" lol

 

[Life Hawk]

I've requested a copy of the policy so I can read through and make sure I want to keep it. I keep seeing ads for term life insurance for her age where she can get a large policy (250K) for as little as $10 a month!

Yeah I agree with you, why take the advice of years of agent experience... what do these guys know anyway... just cause they do it for a living... the TV ad makes more sense.

Keep kicking them tiers.

 

[pfg1]

My recommendation would be to keep the original policy, and if more coverage is desired, check out that ad, or contact an agent in your state who can help you and her to apply for a proper amount of coverage.

Ditto. In most cases, an in force whole life is usually doesn't make sense to replace.
IDK how gerber policies work, but if it has a pua and keeps growing, its a no brainer to keep it.

 

[LostDollar]

Options:
1) Keep paying on it and keep the $30,000 in death benefits. Will she have student loans? If she passes away and has private student loans, YOU could be liable.

Lenders Refuse to Forgive Dead Woman's $200K Student Loan Debt

2) You can "cash it out" and enjoy the $2,500 and lose the $30,000. (Think about it: You're losing an additional $27,500 of future family wealth if the policy is cashed out.)

3) Stop payments on the policy and let it either erode the cash values OR do a "reduced paid up" option so the policy is always "paid up". It'll probably lower to something like $5k - 7k.

4) You can do a 1035 exchange of the cash values into a new policy. It might not make sense to do that, but you can do it.

With the monthly premium being the same as eating lunch out once a month at Chipotle, I'd probably just keep it as it is. Even if it wasn't building cash values, $10/month to secure $30,000... is a no brainer - at least to me.

Would I be right in thinking that the premium cost of a $10,000 FE policy purchased in one's 70's and held for 10-12 years might exceed the total annual premiums of this $30,000 policy for the next 70 years?

 

[Chazm]

Would I be right in thinking that the premium cost of a $10,000 FE policy purchased in one's 70's and held for 10-12 years might exceed the total annual premiums of this $30,000 policy for the next 70 years?

73 year old female NS in Florida. $10k is $759 annual level.
10 years would be $7,590