Ruth called and said to expect a phone call from one of her friends, Lee. This lovely gentleman was talking to her about life insurance and she suggested he call me. Here’s the call I got. “I need some life insurance. I don’t want my children or grandchildren to use my monies that I have worked hard for and saved or my assets that I’ve collected to pay for my burial or any final expenses. I want them to enjoy everything I leave them. I’m healthy, don’t smoke any more, have COPD (chronic obstructive pulmonary disease) and I’m 87 years old.”
Lee told me he has no life insurance at all. He either cancelled all the life insurance he had because he didn’t think he needed it any longer or the premiums got so high he just could not pay them. I told him I would check some resources for him to find out what is available. (I knew he had two things going against him – his age and his medical history but wanted to try to help him.) Here’s what I found out. Companies that offer a small amount of life insurance typically used for burial or final expenses do not write policies for anyone over age 85 (and he’s 87). I found a company that does offer a policy for someone up to age 90 but the minimum amount of life insurance is $50,000. This makes the premiums really high! Then there is the issue of his medical history of COPD. This made the premiums really, really high – and not affordable. Unfortunately, getting a life insurance policy today is not an option for him. Let’s talk about life insurance and how this happened. Lee had a term policy years ago. He was able to buy a large amount of insurance and pay a low premium for a specific “term period” (or length of time of 10, 15, 20 or 30 years). He loved those low premiums until the term period ended and his premiums went sky high. So, yes, he dropped that policy. Lee also had a small policy that was a “permanent” policy. The premiums were higher for the amount of insurance he had but the premiums would never change (increase) – his premiums would be the same until he died. He bought this policy initially to pay for burial/final expenses. Since he decided he didn’t need any life insurance and that the policy had “served its purpose”, yes, he cancelled it. Now his need for life insurance has come full circle. It’s too late for Lee to get some life insurance but, if you have a life insurance policy, talk with a trusted insurance professional about your options before you make any changes or cancel it. Do you think this gentleman’s “full circle” may be a good reason to buy a grandchild (or great grandchild) a “paid up” policy they can have for their entire life? Call me at 501-868-6650 and say “Caroline, can we talk?”
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AuthorCaroline Beauchamp specializes in personalized life and health insurance solutions. Archives
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