EXCELLENT ADVICE ! ! ! !
cal Lester CLU.

"kastnna" <kastnna[at]auburnalum.org> wrote in message news:1195052985.693736.134400[at]d55g2000hsg.googlegroups.com...
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On Nov 13, 6:44 pm, "Elizabeth Richardson" <erich...[at]worldnet.att.netwrote:
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Elizabeth, it is common for insurance companies not to issue a new
policy to anyone over 90, but that is not the case for existing
policies.

Another warning to all of the Universal life owners out there:

Today, GUARANTEED UL policies are very popular because the last
"forever", but they are a relatively new product. Most older UL
policies were designed to mature at age 95 or 100. If the insured is
still alive at the time of maturity, the cash value of the policy is
paid out in lieu of the death benefit. Not a big deal if the cash
value had grown to match or exceed the policy's death benefit, but
this is not often the case.

In order to minimize premiums (and/or due to the interest rate problem
discusses earlier) policies are often designed to end up with a cash
value close to zero. It is infuriating to pay premiums for decades
only to find out that the insurance company is mailing you a check for
$1.00 on your 95th birthday. Nobody used to worry about this (and
agents often neglected this point) because the chances of living that
long were slim. But as life expectancies rise, this problem is
happening more often. And who knows what future medicine advances are
coming.

If any of you own an older UL policy, it is a good idea to ask the
insurance company (or your agent) to provide a current illustration
reflecting the premiums required to endow the policy, not just carry
the policy to maturity. You may also want to ask for this using
current AND guaranteed rates.

**Whether or not you actually need to coverage anyway is another
topic.

In investment instruments like annuities an old,
arbitrary date is merely a formality. The annuity is
pure investment and the insurance part minimal to
obtain tax deferral.

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FORTUNATELY you are mistaken. It may be true that a SPECIFIC
policy will not provide coverage beyond age 90 (or possibly 80 or 73),
but in general, IF a policy is in effect at age 90, then it should cover
that life for LIFE.

As a matter of fact, the last Universal Life policy that I sold, would
ENDOW at age 100, or could be kept in effect until death. One must
take into consideration however the amount of premium required to
cover the RISK at age 90 or 95 or 100. It would (without bothering
to look at the tables) be somewhere in the neighborhood of
$999.00 per thousand ! ! ! ! ! ! or thereabouts.

Cal Lester CLU

"kastnna" <kastnna[at]auburnalum.org> wrote in message
news:1194991562.300968.302210[at]19g2000hsx.googlegroups.com...
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I thought I read in this newsgroup that it is normal for life insurance
policies to not cover individuals over 90 years old. Is that not true?

Elizabeth Richardson

On Nov 13, 2:46 pm, PeterL <po.n...[at]gmail.com> wrote:

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I'm making MANY assumptions here, but this sitaution has been occuring
quite regularly over the past 10 years or so.

Whole life and universal life policies are partially dependent on
dividend crediting rates and/or interest rates to fulfill the
assumptions made when the policy was issued. The illustration on which
your policy was created is nothing more than a rough estimate based on
the rates used by the insurance company at that time. Unfortunately,
back when your policy was issued, the insurance company was using
dividend crediting rates and interest rates that were well above 10%
(that was the norm at the time). Today, however, the rates are closer
to 5%. So the cash value in your policy (which is VITAL to keeping the
policy in force) is earning half of what the original projections
expected. To compensate for this one must increase the premiums or
have the policy lapse earlier than expected.

IF (very big if) my assumptions accurately describe your situation,
your insurance agent should have told you all of this back when the
policy was issued. The policy should have also been reviewed regularly
(this didn't happen overnight). However, all of the paperwork given to
you when the policy was issued explained what I just said above. Did
you read it? In reality both you and your agent are probably to blame.
He should have been looking out for you, but you should also been
looking out for yourself.

There have been numerous class action law suits over the past years
because insurance companies used unrealistic interest rates. There
have also been cases against individual agents on the grounds that "he
didn't tell me the risks". The later situation is much harder to
prove, however (especially when it was plainly printed on the original
illustration).

If you can tell us more about your policy and your personal needs and
we can almost surely help you more.

On Nov 13, 1:16 pm, jmmpilot <jm8422...[at]yahoo.com> wrote:
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What does your policy say. After all, it is a contract that you and
the company agreed to.

Dave

On Nov 13, 11:16 am, jmmpilot <jm8422...[at]yahoo.com> wrote:
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What kind of life insurance? Term or whole life?

I have a thrivent agent for many years that I trusted. My friend has
a live insurance policy and after paying for many years now in the
late 80s received a letter that her insurance is over at 90?? You have
to be kidding! I thought this can't be, called my friend agent, he
says yep/asked about mine/ same thing! Never mentioned it in the
sales pitch.