I am 51 currently, non smoker.
I'll start from the beginning.
Ten years ago the wife and I purchased a $300K term 30 year with level premiums the first ten years. That ten years is up and because of other financial factors, mainly pension related, I needed to secure life insurance on me for the long haul. Plus I was about to turn 50. This policy would expire at 70 and if I bought a new one now it would last until I was 80. Neither of those are good times to shop for life insurance. I prefer term as I don't need or want life insurance as an investment vehicle but there were no other options so I went with the permanent policy. It is called "Flexible Premium Indexed Life Policy". Preferred non smoker. It is with Lincoln Benefit Life.
I originally wanted $1M but learned through the underwriting that my class had dropped from the top one to the middle one due to some health issues I had the past ten years. I could not afford the $1M and I exercised the conversion option on the original policy and converted it to permanent. I needed a "set it and forget it" policy for a defined death benefit. I agree there are so many twists and turns with this but it was the best option for my circumstances.
After two years the value is $4250
Premiums are $2,000 annual.
Surrender $9199
Cost of insurance $329 (about $27/month)
Expense charges $740 ($35/month)
Fixed interest earned $109
Riders: Annual reset credit and overloan protection. Both no charge.
I chose the fixed option (currently at 3.85%/floor of 2%) because I didn't want to worry about losing money with this or have to actively watch it--set it and forget it. This is for the death benefit and not an investment vehicle. I have no intention on cashing this in or taking a loan ever on this. This is to pay the wife if I die before her and nothing else.
My goal was to pay the $2K premium every year until I die. I wanted a fixed premium in return for a 300k death benefit no matter how long I lived. It was never intended to be an investment vehicle.
I don't want to worry about underfunding in the future but I have discovered the premium is only guaranteed for eight more years.
I had a lengthy conversation with my agent-the owner of the agency. He volunteered that the agent that sold me the policy was fired.
I realize he wants to keep me happy, but the main point of the discussion was in the absence of a nuclear war or another great depression it's reasonable to assume the policy value will grow sufficiently, and that the costs of insurance are the maximums that can be charged and don't reflect the current rates. The basis of his point was interest rates can only get higher more or less. There are still no guarantees though.
I am looking for a stable premium until I die in exchange for a stable death benefit. Northwestern has a Universal Policy-Guaranteed I am considering looking into.
Thoughts? Ideas?
I'll start from the beginning.
Ten years ago the wife and I purchased a $300K term 30 year with level premiums the first ten years. That ten years is up and because of other financial factors, mainly pension related, I needed to secure life insurance on me for the long haul. Plus I was about to turn 50. This policy would expire at 70 and if I bought a new one now it would last until I was 80. Neither of those are good times to shop for life insurance. I prefer term as I don't need or want life insurance as an investment vehicle but there were no other options so I went with the permanent policy. It is called "Flexible Premium Indexed Life Policy". Preferred non smoker. It is with Lincoln Benefit Life.
I originally wanted $1M but learned through the underwriting that my class had dropped from the top one to the middle one due to some health issues I had the past ten years. I could not afford the $1M and I exercised the conversion option on the original policy and converted it to permanent. I needed a "set it and forget it" policy for a defined death benefit. I agree there are so many twists and turns with this but it was the best option for my circumstances.
After two years the value is $4250
Premiums are $2,000 annual.
Surrender $9199
Cost of insurance $329 (about $27/month)
Expense charges $740 ($35/month)
Fixed interest earned $109
Riders: Annual reset credit and overloan protection. Both no charge.
I chose the fixed option (currently at 3.85%/floor of 2%) because I didn't want to worry about losing money with this or have to actively watch it--set it and forget it. This is for the death benefit and not an investment vehicle. I have no intention on cashing this in or taking a loan ever on this. This is to pay the wife if I die before her and nothing else.
My goal was to pay the $2K premium every year until I die. I wanted a fixed premium in return for a 300k death benefit no matter how long I lived. It was never intended to be an investment vehicle.
I don't want to worry about underfunding in the future but I have discovered the premium is only guaranteed for eight more years.
I had a lengthy conversation with my agent-the owner of the agency. He volunteered that the agent that sold me the policy was fired.
I realize he wants to keep me happy, but the main point of the discussion was in the absence of a nuclear war or another great depression it's reasonable to assume the policy value will grow sufficiently, and that the costs of insurance are the maximums that can be charged and don't reflect the current rates. The basis of his point was interest rates can only get higher more or less. There are still no guarantees though.
I am looking for a stable premium until I die in exchange for a stable death benefit. Northwestern has a Universal Policy-Guaranteed I am considering looking into.
Thoughts? Ideas?
