Are you having difficulty keeping up premium payments on a life insurance policy, or do you no longer need the polic...Read more
Is It Time for a Life Insurance Audit?
- November 21st, 2006
- The life insurance companies have changed the tables they use in determining the life expectancy of customers. This means that even though you bought your current policy when you were younger, you may now be able to get the same coverage at lower rates.
- If you no longer need the life insurance coverage, you may be able to sell the policy for substantially more than its cash surrender value. In recent years, a robust market has developed for so-called "life settlements." In general, buyers are looking for policies with death benefits of at least $100,000.
- If you have a "second-to-die policy" insurance to be paid when the second of a husband and wife passes away, and one of the other insured individuals has already passed away, you may be able to trade in the policy for a new one on your life alone at favorable rates.
- Finally, if your net worth is high, a new market has developed that can get you free life insurance for two years. Known as "premium financed," life insurance, it's complicated and not available to everyone. You have to be at least 70 years old and in good health. Some companies require you to have a net worth of at least $3.5 million, while others will go as low as $1 million. In either case, for as long as it lasts it offers the possibility of getting something for nothing, or at least nothing other than going through the process of a medical exam.
If you fit within any of the four categories above, it's time for an insurance review. Contact your insurance agent or attorney, who can put you in touch with the right insurance professional.
Local Elder Law Attorneys in Ashburn, VA
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...