Term Insurance - Cost of Waiting Software??

I think the evidence points to keeping the existing policy for 2 more years.

The savings of a new 20 year term now vs 2 years from now is not that compelling from a price standpoint, considering it will take almost 10 years of the policy to make up that initial additional outlay.

It's not a stretch for a 50 year old in good health to believe that they will still be in good health at age 52.

You have to also think about the back end of the policy...as given the choice, I think more insureds would want a policy that ran to 72 vs age 70, when health issues are more likely.
 
It's not a stretch for a 50 year old in good health to believe that they will still be in good health at age 52.

You have to also think about the back end of the policy...as given the choice, I think more insureds would want a policy that ran to 72 vs age 70, when health issues are more likely.

Great points here. It all really just depends on the age though. You have to think about the 3rd renewal time too. If they wait until after age 70, then they eliminate the option of 20 year term if they want to renew again. Then there is also the fact that if they want to renew in their 70s, then each year longer they have a higher risk of not qualifying.

There is no single right or wrong answer. It all depends on the clients specific needs and situation.
 
There is no single right or wrong answer. It all depends on the clients specific needs and situation.

I think it would be crazy to dump the old policy, until the premium increase hits.

I also think it would be crazy to wait and take the chance the client is still insurable at that time.

Show him the renewal premiums in the existing policy, and explain that those premiums are a little higher because of the risk of un-insurability. One he can't buy life insurance, he can't go back.
 
I think it would be crazy to dump the old policy, until the premium increase hits. I also think it would be crazy to wait and take the chance the client is still insurable at that time. Show him the renewal premiums in the existing policy, and explain that those premiums are a little higher because of the risk of un-insurability. One he can't buy life insurance, he can't go back.

When people buy level term shouldn't they be buying it for the length of time that they need the insurance?

So if something changed and he needs it for a longer period of time than he originally thought **** he changed his insurance today to fit with his new goals for the insurance?
 
I think it would be crazy to dump the old policy, until the premium increase hits.

I also think it would be crazy to wait and take the chance the client is still insurable at that time.

Show him the renewal premiums in the existing policy, and explain that those premiums are a little higher because of the risk of un-insurability. One he can't buy life insurance, he can't go back.

Considering that you are not a licensed agent I could care less what you think since you have no business giving insurance advice.

Cost is only part of the equation. A clients needs and their situation is more important than cost.

I am not saying that they should or should not drop the policy. There is not enough information given here to determine what is in their best interest. But judging by cost alone is not the proper way to asses the situation.
 
Considering that you are not a licensed agent I could care less what you think since you have no business giving insurance advice.

And you'll be filing a complaint somewhere? You think an agent who just obtained a license has more right to speak to the subject of life insurance than I do, having spent 35 years in the business, 18 of those with a license?

I am not saying that they should or should not drop the policy. There is not enough information given here to determine what is in their best interest. But judging by cost alone is not the proper way to asses the situation.

Let me be categorical here:

Dropping a 20 year term policy, in the 15th policy year, is pretty darn close to stupid, particularly if the insured is over the age of 35. The fact that you need more information before making a recommendation is preposterous. I take it that you majored in the paralysis of analysis in college.
 
If they are looking to retain the amount of premium that they are paying now, would they be willing to lower their face amount? Thats saying that they are not willing to pay the higher premium.
 
Keep the current 20 year term for 5 years, buy the new 20 year term immediately. There is a risk he/she may not qualify in 5 years. BUY what you know you will need NOW. There is no way to factor in becoming un-insurable.

If they buy a new 20 yr term now, why should they keep the current for an additional 5 years? Assuming they have the correct amount of insurance that they need, the new 20 year term will fill that need. Why pay for both?
 
If they buy a new 20 yr term now, why should they keep the current for an additional 5 years? Assuming they have the correct amount of insurance that they need, the new 20 year term will fill that need. Why pay for both?

Sometimes they just keep the extra if it's cheap and think of it as 5-years worth of lottery tickets with better odds.
 
Sometimes they just keep the extra if it's cheap and think of it as 5-years worth of lottery tickets with better odds.

I agree. However, I'm assuming if they want to wait 5 years because their current policy is cheaper then the new one, they definitely won't want to pay for both...even with the better odds.
 

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