Insurance Agent Forum

[Loly]

We have been married for 34 yrs, he is 57 yrs old, I am 54 yrs old, both in perfect health, no smoking or alcohol ever, have had both Universal Life for 100,000 on each and 30 yr Term for $200,000 on each for approx 11 yrs, our problem is now he has lost his job, we are in a very tight financial situation and need to let one of these go, we are looking right now to only keep our home protected (150,000), but don't know what the best decission would be. We are thinking maybe cancel the Universal, and keep the Term for only $150,000 on each, but the only thing is the Term takes us only to 2030, so we are afraid what happens then after that?, we have our Term with First Colony, can they add another let's say 10 yrs to this actual policy we have now to make it to 2040, because if we cancel this one and open another one I am sure the price will be way higher being that we are older now. I am all confused. Please help, we need advice on what the best way to go would be.... Or there might even be a better way that we don't know about, we just hate to loose all the money we have already put in these policies, the Universal money I know we would get back which we desperatly need, but hate to loose all the money we have put in the Term. We are completely lost. Tks so much.

[ims01]

Loly,

I hate to advise you drop anything, but I understand your situation. If the insurance is for mortgage protection then consider how much longer you will owe on your mortgage. If it will be paid off or close to it by 2030, then the best solution may be to drop the UL and reduce the face amount on the term. But, before you drop the UL check if there is any cash value and if there is any surrender charge. If you are still in the surrender period, you might consider keeping the UL and see if you can drop the term to $50,000 or drop it completely and get a new $50,000 ten-year term.

Any increase in the face amount or term of your current policy would require all new underwriting.

Ed Gentry
866-232-3370

[LGilmore]

How long have you had the UL's? Could there possibly be enough cash value to run them without additional funding for now? The idea behind UL was flexible premiums so if there are cash values check with the company to see how long they could run internally. Switch the mode to annual and have the policy paid from the inside. If you can reduce the face of the term policies that may help. But check and see if you can run the Ul's from the inside first. Then no current money has to go into them until things get squared away.

[Mr. Bill]

Loly,

No one on this board can give you an appropriate answer as we don't know all of your financial situation.

Since circumstances have changed, you need to look at all areas of your budget before "giving up" something you may not qualify again for, as in life insurance. Perhaps this is the time to reassess the personal trainers, pool boys, gardeners, etc., especially cable/satellite tv.

Keep your spirits up, but please understand we can't answer that question directly.

Good luck!

[al3]

Loly:

I'm a few years older than your husband and I see folks like you (us) all the time... who have been laid off and who are looking at severe financial dislocations, with few liquid assets to draw upon. Add a health issue without a safety net and you're talking about major problems.

Since you've had these insurance plans for 11 years I would doubt that they are so expensive such that dumping one of them will save all that much money.

I would urge you to keep the UL. If you can dial-down the term, that might be an option, but I doubt it will save enough to make a difference in your overall financial picture.

Think of your plans as assets that you can't easily replace at your age.

I urge you to concentrate not only on cutting back non-essentials but also on how to bring more income into the house. Even if it is a McJob, any income is going to help. Maybe it will take two McJobs and even a weekend McJob. Maybe you have to relocate. Maybe you need a career change (yeah, it is done even in mid 60s.) Maybe there is a government program you can enroll in for training? Maybe there is a business you would like to open (or buy.) Maybe a home equity loan (but only to fund training or education... and one that you will pay back!) If you are an empty-nester, maybe take in a boarder like a college student?

If you have to sell something, sell what you can replace... a house, a car, a boat. You can't easily replace your insurance plans.

The best thing you can do is find a good agent, one from a reputable company you have heard of, one close to your age who can identify with your stage in life (perhaps one who has been through it) and sit with him or her, put it all on the table and let your agent use his or her experience, training, and knowledge to help you create alternatives... both short term and longer term.

If you don't know of one, post your city and I'm sure you can get some referrals from some of us.

If the two of you are healthy, than you are better off than so many others. In that case it's only about money and there is almost always a way to create income. This is America, not Albania.

By today's mortality tables you are still quite young and there is opportunity out there. You just have to buckle down and find it. I've helped a lot of people where you are now (I'm age 60 so I've seen it all before... unlike my thirty-something colleagues here) and I'm sure there are advisors or agents or counselors in your area who can be of excellent service to you. Talk to a few and I think you will learn that it is not as bleak as it looks right now.

Don't feel sorry for yourself, do not kick yourself for bad decisions in the past, and don't EVER use the words "if only we had done..." Focus on the future on everything you do and say from now on. The past is history, not prologue. Think long and hard about what options you have and what opportunities you can "make" for yourself. You got this far in life... and you will get through this part of life... as long as you keep both depression and defeatism locked in the closet.

If you are faith-based, draw upon that to give you some mental fortitude.

Like I say... if you are healthy then it's just about the money... and money is always manageable.

Life has two stages... a beginning and an end. Your current situation might resemble what Churchill said after the Battle of El Alamein, "Now this is not the end. It is not even the beginning of the end. but it is, perhaps, the end of the beginning."

You've got each other. You will get through this... and while this might not sound like much comfort right now you will find in the end that the journey is the reward.

Note the motto of the company I represent. Adopt it as your own.

You're going to be fine.

Alan N. Canton
Mutual of Omaha
"Begin Today"
InsuranceSolutions123 Agency

[xrac]

Loly,

My advice would be to find a trusted advisor, someone who specializes in life insurance (preferrably with a major mutual company) and set down with them and show them your policies and ask for advice. There will be no charge to do this and it can be very much worth your time. A good professional will look for creative ways to help you and maybe able to reduce your costs while maintaining coverage. The problem you have now obviously is that you have no one you trust. Good mutual insurance companies include Guardian, Mass Mutual, Northwest Mutual, etc.

[LGilmore]

Only Mutual companies? Only mutual company professionals?

Man, what flavor is your kool aid?

[xrac]

Originally Posted by LGilmore

Only Mutual companies? Only mutual company professionals?

Man, what flavor is your kool aid?

My kool aid is flavored with LEAP.

[LGilmore]

I guess I'm just a little too grizzled.. good luck with your leap system. Just remember no matter who you "work" for, you're on your own.

[NewHealthStrategies]

LEAP... the Little-blue-pill for life agents.......


A Reformed LEAP Graduate (one of the 1st)