Life Insurance Policy Coming to Terms

[RichardJ886161]

With about 2 year left on a 20 year policy, we know the rates will go up - quite a bit being 68 in 2024. What alternatives do we have? 

• Take out smaller policies of a smaller denomination?
• Can I sell our policy and cash it out like shown on TV?
• Renew the policy as my current age verse 70? 

Anyone had to think about this and what they came across in assessing this type of scenario?

Thanks.

[Tonster521]

@RichardJ886161 You need to assess your need(s) for life insurance (LI) in the future. Did you obtain LI to cover a remaining mortgage in the event of an early death? Was it needed to replace income if you died early? And so on. That 20 year term policy purchased 18 years ago was low cost. Perhaps you paid about $0.20 per $1,000 per month. So, a $100,000 policy cost only $240 per year. Why? Your probability of expiring was very low, perhaps 1 to 2%. Today, it is greater. So, your premium will be greater if you can continue that policy beyond the 20 year term. The premium will continue to increase as you age because the probability of death increases with age. Because you know your health status, you may have an advantage being already insurable. All you have to do is pay the premium. However, if you no longer need LI, you should review selling the policy or just stop paying the premium. If you need LI and are working with a knowledgeable agent, have that agent develop a solution. If you bought the LI from the internet, good luck.