AboutDave Bowman Expertise I will answer questions of a general nature regarding life insurance, disability income insurance annuities (fixed and variable) and long term care insurance. Also, questions regarding estate analysis. No legal or accounting advice, as I am not a lawyer or a CPA. I do not sell health insurance, so have limited knowledge of the current status of that field.
Experience
Past/Present clients Families, professionals, small businesses, individuals.
Question I feel I was pressured by an agent in 1998 cancel a Life Ins. Policy with the Knights of Columbus and use the cash value of that to purchase a flexible premium variable life insurance policy that has a Contract Fund Value and a Net Cash Surrender Value. I can no longer afford the $250 expensive monthly premiums and the Portfolio has went down in value especially this past year. I am now 64 years old. I would like to have some sort of Life Insurance at a cost much lower that what I am now paying. Is there an option of rolling the policy into a term Insurance and withdrawing the Contract Fund Value without paying the Cash Surrender Value? Thank you!
Answer I'm sorry to learn you were hard sold a policy that is clearly not appropriate for you.
While most flex premium variable policies have a surrender charge that extends for many years, here's a line of thinking you may want to explore.
Many companies offer "lapse-protected" universal life policies. A lapse-protected universal life policy can have a lower payment, as the lapse protection rider insures that the policy won't lapse as long as a specified premium is paid.
Some companies, such as Genworth Life, offer these policies as low as $25,000. In my opinion, these policies are a good substitute for a whole life policy.
At your age, term life doesn't make a whole lot of sense, as it becomes very costly to maintain much beyond age 75.
