kbmoose1
I currently have $350,000 in life insurance: $100,000 Universal Life, $250,000 Term Life. My annual costs are $720 (U LIfe) and $407 (Term).
My wife has $100,000 on the same U Life policy (I own policy) and a separate $100,000 Term policy. Annual cost is $220 (Term). Her U Life is part of my $720.
My U life has cash surrender of about $13,000. The agent told me it would run out of funding in 17 years - and the $13,000 would be gone at that time.
And my wifes policy will go away then, too.
My term policy runs out in 2012.
Wife's Term policy runs out in 2022.
I'm considering buying a $350,000 20 year term policy, and then cashing in the U LIfe and dropping the current term policy. The appoximate cost is $1,400 per year (compared to my current cost of $940). My coverage would be extended significantly. And I'd have $13,000 from the U Life.
If I keep the U Life and replace the Term when it runs out, my annual cost for 20 year term at that time will be about $1,600.
So I see the replacements as costing significantly less over the next 20 years.
I asked an Insurance Agent for quotes and he told me not to do it. But his explanation was not correct. And he wouldn't give me a quote.
He may be right, maybe I shouldn't do it. but I want to understand why. Can anyone give me a good explanation of the hole in my idea?
My wife has $100,000 on the same U Life policy (I own policy) and a separate $100,000 Term policy. Annual cost is $220 (Term). Her U Life is part of my $720.
My U life has cash surrender of about $13,000. The agent told me it would run out of funding in 17 years - and the $13,000 would be gone at that time.
And my wifes policy will go away then, too.
My term policy runs out in 2012.
Wife's Term policy runs out in 2022.
I'm considering buying a $350,000 20 year term policy, and then cashing in the U LIfe and dropping the current term policy. The appoximate cost is $1,400 per year (compared to my current cost of $940). My coverage would be extended significantly. And I'd have $13,000 from the U Life.
If I keep the U Life and replace the Term when it runs out, my annual cost for 20 year term at that time will be about $1,600.
So I see the replacements as costing significantly less over the next 20 years.
I asked an Insurance Agent for quotes and he told me not to do it. But his explanation was not correct. And he wouldn't give me a quote.
He may be right, maybe I shouldn't do it. but I want to understand why. Can anyone give me a good explanation of the hole in my idea?