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- Jun 6, 2005
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My husband is 62 and uninsurable due to a cardiac history. He has had a term life insurance policy for $100K for 10 years at a super low premium (he was in excellent health when he purchased it). Now we are looking at increasing premiums - still reasonable for the next 5 years (under $100/month) but with large increases ahead, to a total of $432/month between 75 and 80. The policy ends at age 80.
His health is very good now that he has had his heart valve replaced.
Our insurance agent has advised us to convert this policy. He offered us a couple of options. One is a set premium of $122/mo for 15 years that ends at age 78.
The 2nd is a set premium of $185/month until the age of 90.
My gut tells me he will outlive the 15 year term.
We just don't know if it is worth $2200 a year for the longer policy. We can afford the premium, but to tell you the truth if I am in my 80's, I won't have much use for $100K. I guess we will be gambling that he will pass prior to his turning 90.
We can buy the insurance as an investment in inheritance for the children, but over the term (if he does not pass away) we will be spending about $60K to get a $100K return over 28 years.
Any thoughts on this are appreciated. The financial people we have spoken to all have products they would like to sell us, so it has been hard to get an objective opinion.
His health is very good now that he has had his heart valve replaced.
Our insurance agent has advised us to convert this policy. He offered us a couple of options. One is a set premium of $122/mo for 15 years that ends at age 78.
The 2nd is a set premium of $185/month until the age of 90.
My gut tells me he will outlive the 15 year term.
We just don't know if it is worth $2200 a year for the longer policy. We can afford the premium, but to tell you the truth if I am in my 80's, I won't have much use for $100K. I guess we will be gambling that he will pass prior to his turning 90.
We can buy the insurance as an investment in inheritance for the children, but over the term (if he does not pass away) we will be spending about $60K to get a $100K return over 28 years.
Any thoughts on this are appreciated. The financial people we have spoken to all have products they would like to sell us, so it has been hard to get an objective opinion.