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My dad currently has a 20 year term life insurance policy that he got at 56. I believe the monthly premium is a little under $200 a month.
Yesterday my dad said he thinks at 76 he can keep the policy but the yearly premium jumps to $10,000a year.
Does this sound right? Would it be another 20 year term?
Even if he lives to 90 that would only be spending 140k for a half million dollar policy amount.
What am i missing?
Pull out his policy and read it. Call the agent and find out. Is it guaranteed renewable term? If so, he can get it no matter his health. The face value may start declining at this renewal. It's hard for us to guess all the scenarios.
Right, so you can’t count on what you already paid. You can only look at the premium going forward.
You're way off...
My question was if people here thought it would be another 20 year term at 10,000 per year, the chances of dad passing away would be very high and his heirs would get a half million
Pull out his policy and read it. Call the agent and find out. Is it guaranteed renewable term? If so, he can get it no matter his health. The face value may start declining at this renewal. It's hard for us to guess all the scenarios.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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Agree with KaraG.
You should know enough to be assured that your father knows what to do.
Term insurance allows for a lot of planning.
Ex, father in near the end of the current term. Should dad renew?
Depends. Definitely if he has bad health. Which is the obvious answer. But what is not obvious is that he has the "option" (or that you may have the option) that was afforded by the contact, which he has continually paid every year.
In contrast is someone who doesn't have LI. The choice is very clear in that health care will be less, inheritances eliminated, etc.
Disclaimer.
We do not have LI. We do have LTCi. We have death benefits on our annuities and some survivor income. Health is declining, treated cancers and me many other issues. 70/73. Our son knows the basics and where the location of the documents.
Agree with KaraG.
You should know enough to be assured that your father knows what to do.
Term insurance allows for a lot of planning.
Ex, father in near the end of the current term. Should dad renew?
Depends. Definitely if he has bad health. Which is the obvious answer. But what is not obvious is that he has the "option" (or that you may have the option) that was afforded by the contact, which he has continually paid every year.
In contrast is someone who doesn't have LI. The choice is very clear in that health care will be less, inheritances eliminated, etc.
Disclaimer.
We do not have LI. We do have LTCi. We have death benefits on our annuities and some survivor income. Health is declining, treated cancers and me many other issues. 70/73. Our son knows the basics and where the location of the documents.
For my perspective, he DOES NOT need to renew. He should absolutely not spend $10,000 a year to leave his heirs money. His heirs should have money by now. You need life insurance when youre leaving behind dependents who require care or support. Your father would be wasting his money just to leave you and your family money.
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