insuring my mother

My mom is going to be 60 years old in July and does not have life insurance, except a small death benefit through her job which is not much. I am an only child so everything is going to be left to me. Anyway I talked to an insurance agent through met life who told me at her age he can get her a whole life policy for roughly 80 dollars per month for a 25,000 policy. In addition, every few years the death benefit goes up and the monthly premium stays the same. Plus after 15 years it's paid for and you don't have to pay the monthly bill anymore. At her age, term insurance would not be cost effective.

The only issue is my mother cannot afford to pay this. I would be responsible for the monthly bill which is affordable. Would anyone here recommend me do this, so if something happens I am covered? The cost of death seems to go up every year and this would help.

The insurance agent also said it does not pay for me to get insurance on myself since I am single and have no dependents. He only recommends it for people who are married or have children. So since I have none of the above I think I will hold out on myself for now.

Also should I shop around other insurance companies besides MetLife for my moms life insurance, to see if I can get a better rate, or is this the best I am probably going to get?

If the problem is that you're worried about how to pay for Mom's funeral, rather than get life insurance, why not simply purchase a pre-paid burial plan?

Giacona, that's really going to depend on your situations. If your mother dies, does she own a home with equity in it that you would otherwise lose without the insurance money? Are you just worried about burying her in the event of her death? As far as you not needing insurance, I think the agent you spoke with is misinformed. Life insurance is not just there to pay off things when you die. There is many strategies where you can access the money while you are alive in the event of a major illness etc. If you are single and have nobody to take care of you in the event of you having a heart attack for example, you need something in place to take care of yourself.

I spoke to my mom and she wants me to get a 100,000 policy. It seems a term policy is the best for my money. I have checked online and with big companies such as MetLife, allstate and state farm. The one I like is a 15 year term policy from hsbc which requires no health exam. My only fear is if she outlives the policy the price to renew can be very expensive. The sales rep said there is no evidence of insurability when we renew this policy, but in some cases it may be cheaper to buy a new policy and just go through the questionnaire like we will if we purchase the policy. She also told me that in most cases the monthly premium would just double in cost when it comes time to renew. I find that hard to believe. Right now my mom is 59 and will be 74 when it comes time to renew. Can someone here give me a ball park number what I would be looking at when it comes time to renew the policy? The price for the policy now would be 78.14 per month for 15 years. What ballpark renewal price would I be looking at

I also have option B and go with metlife on a 20 year term which puts her at age 79. However this policy requires a medical exam. However this policy would be around 45 a month for an extra 5 years. The only downfall is when this policy expires I would not be able to renew it. I would have to purchase a new policy again and no one knows where her health will be at that time, so the rates may be through the roof. The only option would be to find a company that would allow converting to a cash value policy. However the sales person told me once converted, the monthly premium would be much higher that I would be paying.


She wants me to get this policy so I am covered if something happens. We are just afraid that if she outlives the policy it would be too expensive to insure her at her age. I personally like the 15 year term since it’s renewable with no exam, but again no one knows what the rates will be.

Can someone please provide some input and advice, I’d really appreciate it

Wow Giacona. The premium to renew your mothers term policy at 74.14 now at the same 15 year term is going to be 4-5 TIMES that number. I can't even begin to type out how misinformed the "sales" people you have met with are. I really think you are on the verge of making a bad decision due to mis-information. If you want a non-biased outlook on your options, PM me and I will provide you my phone number. I can't even sell you anything unless you are located in VA, but you really need some help.

Dan@ACA... please (Dan@ACA... please) stop soliciting on the message board. Thanks.

Giacona,

At age 59, a fully underwritten $100,000, 15 year term, at best rating should run you about $350 per year. nd you could expect about $500 per year if she has few issues (cholesterol/hypertension). Expect double these prices if she is a nicotine user. Anyway, the 16th year, that annual premium is OVER $7000 per year (even at best rating). Yes, you can keep it with no underwriting, but why would you and COULD you? That is how term works.

As for insurance that is issued with no underwriting, you will pay a much higher price than privately purchased and fully underwritten policy (no matter which type). The reason for this is that the insurnace company knows that people of poor health will seek out their product and they have to price it much higher becaue the compnay is assuming more risk.

As for the answer, just ask yourself "what is the purpose/need". If it is just for final expenses, a small whole life policy is perfect. Puck gave another good suggestion, but usually you are locked into an arrangement with one provider for the services. At age 59, this could be a very long period. I just purchased a guaranteed-issue whole life from the AARP for my mom (59 years old) for this exact purpose. It was $15000 for $70 per month. She would never have been able to get a policy issued with full underwriting though. So, to answer your question, the $80 price you mentioned for $25000 is well within the ballpark.

As for insurance on yourself, all you have to is ask yourself, "Will anyone suffer financially if I pass away?" If the answer is no, then you don't have a protection issue. I will say however, there are many people with no kids/spouse, ect. that have legitimate insurance needs. For example, are you financially responsible for your mom? In that case, you may have a legitimate need.

The only thing I was soliciting was free advice.

Sorry for the skepticism Dan, but we get a lot of that. Especially from new people who come in and drop their contact info about a dozen (or more) times, never to be heard from again. Welcome aboard!

Thanks pricespector, no hard feelings.

Thanks everyone for the advice. well it seems I have 3 options here. I found a very good term policy resonable priced for a 25 year term. This would put her at age 84. If she outlives the policy I don't get a dime.

Option 2 is a term-100 policy covers her to age 100. However it's more money for a less benefit.

Option 3 is take the money I would be paying for her insurance and put it into a good growth stock mutual fund that averages at least 10% a year.

Now she is on BP medicance other than that her cholesteral is a little elevated about 230, so the price may be a bit more.


What is the best route to go here? Which option is best. The term-100 policy I can only afford about 30K policy. The 25 year term I can get 100K coverage for the same price.

I'd appreciate any advice.

Option 3 isn't really an option when it comes to insuring your mother.

How much does her current policy cover? If it is enough to at least pay for your obligations (the funeral), that is plenty. If you do not depend on her income, do not over insure her. Period.

I don't mean to sound insensitive. You just don't need to spend the extra money in this case.

She does have insurance at work right now which is 3 times her income. She may retire in 5-10 years and wont have anything at that point. What is my best option then? It would cost a lot to insure her at that time since she is 59 now.

My only options are to be a term-100 policy or a 25 year term. I am still undecided.

Have her contact her benefits coordinator at work (or the corporate HQ) and find out if that policy can be continued after your mom's retirement. You may be able to contact the insurance company directly as well.

If that works out, you won't have to worry about your other options.

Have her contact her benefits coordinator at work (or the corporate HQ) and find out if that policy can be continued after your mom's retirement. You may be able to contact the insurance company directly as well.

If that works out, you won't have to worry about your other options.


DON'T GO THIS ROUTE!!!

Usually when you take your "Portable" Life Policy in retirement, you also take a Table D or Sub-Standard Rating with you. This means that you pay more for less insurance.

It won't hurt to do the medical and see where she is rated given her current health conditions. Don't wait too long though, every day in your 50's and 60's is a day in which you are usually less healthy than the previous day. Also, get the medical done, the more underwriting that is done on the policy, the less the premium will be. The insurance company wants to know the health of their investment. If they don't they charge more.

By the way...just because you don't have a wife or a child, doesn't mean you shouldn't get life insurance. You will never be healthier than you are now and your rates will never be less. With some of the better insurance companies, your policy and hence your great health can roll over into a Variable Universal Life policy when you can afford to properly fund it. Therefore, your cash value life insurance plans will perform much greater than they would have, had you waited. Remember that Life Insurance is the only form of insurance where the company can deny you coverage.

If you are making good enough money to invest either start working with a financial professional or start reading some books on it. If you are going to pay for your mother's policy I would only cover funeral expenses and estate taxes that you would incur when she died. The difference should go into your own investments. She will more than likely outlive the more cost effective policies.


Kenneth Besada
Insurance/Financial Services
EMAIL: Kbesada@FarmersAgent.com

P.S. Since this is a heated topic on this particular thread...I am not selflessly promoting! I always leave my contact information because you never know who you are going to meet in person or on a message board. My advice carries no implication that readers should use my services. You would be surprised how many great life-long connections you can make if you just shared your contact info.

The place where i found the best free info on senior life insurance policies (http://www.theroundtable.org/topics/show/418) was http://www.theroundtable.org. They have info on life insurance for anyone at any point in their life, and the posts are really helpful.