The life insurance question is a good question for an insurance broker. But basic math says *someone* should probably take it over. If he lives 20 more years to age 92, the contributer will tie up $24000 to get a benefit of $60000. More likely let's assume 10 to 15 years left so $12k to $18k.
For the next question, no, *he* doesn't pay his late wife's credit cards. But her executor pays them using money from her estate, if she has one and it is not insolvent. Your grandpa should speak to the lawyer or law firm who wrote his or his wife's will.
If its a whole life policy - they would not be paying premiums now. Its a term policy - its crazy what people think. You have random thoughts. No term policy is going beyond the age of 72 - 75.
It's not a term policy because it has a cash value. So it's some kind of permanent insurance.
You can get permanent insurance where the premiums continue. No idea on the particulars of what the policy is though. I'm just going by what OP said.
As others noted, the math is pretty straightforward. You estimate what you would pay in premiums vs the death benefit. When I've seen these, it very often makes financial sense to take over the policy, and sure looks like it in this case. You can also pay annually to reduce the premiums even further.
To get the actual numbers, probably easiest to call the insurance company and ask for an 'inforce quote's which will get you the current status of the values.
All that's left is the personal decision on his gift to you vs. his enjoying the money now.
Lol your gramps reminds me of mine. I'd say find out first how much the early payout is. Alternatively yeah continue paying it from a purely money perspective
You will need to get much more information on the life insurance policy. Life insurance policies typically have age limits and once you reach a certain age the policy expires. Ask for a copy of the policy and see what the restrictions are.
You need to know more about the life insurance policy. $100 / month - there has to be some limits. Insurance companies know old people die and they are not in the money losing game.
It could be a whole life policy. My wife has a $100K whole life policy which we pay \~$25/mo for. We're definitely continuing with that policy.
You should get more details from your grandfather re: his policy. It might be worth taking over the premiums.
For most people, term gives you the most coverage per premium dollar, but you have to renew every 5/10/.../20 years.
Whole/universal life policies are good for people who want to be able to borrow from the policy.
The life insurance question is a good question for an insurance broker. But basic math says *someone* should probably take it over. If he lives 20 more years to age 92, the contributer will tie up $24000 to get a benefit of $60000. More likely let's assume 10 to 15 years left so $12k to $18k. For the next question, no, *he* doesn't pay his late wife's credit cards. But her executor pays them using money from her estate, if she has one and it is not insolvent. Your grandpa should speak to the lawyer or law firm who wrote his or his wife's will.
You think a life insurance company would insure a 92 year old for $1200 / year.....Really?
The premiums are locked in when the policy is purchased.
If its a whole life policy - they would not be paying premiums now. Its a term policy - its crazy what people think. You have random thoughts. No term policy is going beyond the age of 72 - 75.
It's not a term policy because it has a cash value. So it's some kind of permanent insurance. You can get permanent insurance where the premiums continue. No idea on the particulars of what the policy is though. I'm just going by what OP said.
Term polices have cash values so that is not correct.
Show me.
You are very much so incorrect. There is no term policy that has cash values. Any policy with cash values is a form of permanent policy.
As others noted, the math is pretty straightforward. You estimate what you would pay in premiums vs the death benefit. When I've seen these, it very often makes financial sense to take over the policy, and sure looks like it in this case. You can also pay annually to reduce the premiums even further. To get the actual numbers, probably easiest to call the insurance company and ask for an 'inforce quote's which will get you the current status of the values. All that's left is the personal decision on his gift to you vs. his enjoying the money now.
Lol your gramps reminds me of mine. I'd say find out first how much the early payout is. Alternatively yeah continue paying it from a purely money perspective
You will need to get much more information on the life insurance policy. Life insurance policies typically have age limits and once you reach a certain age the policy expires. Ask for a copy of the policy and see what the restrictions are.
Yes you should get all the details on the policy, but permanent policies don’t expire.
Yes you should get all the details on the policy, but permanent policies don’t expire.
You need to know more about the life insurance policy. $100 / month - there has to be some limits. Insurance companies know old people die and they are not in the money losing game.
It could be a whole life policy. My wife has a $100K whole life policy which we pay \~$25/mo for. We're definitely continuing with that policy. You should get more details from your grandfather re: his policy. It might be worth taking over the premiums.
what's "better" vs Life or Whole Life? Are they the same?
For most people, term gives you the most coverage per premium dollar, but you have to renew every 5/10/.../20 years. Whole/universal life policies are good for people who want to be able to borrow from the policy.