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Author Topic: Should we cancel our parents whole life insurance policies?  (Read 4799 times)

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Offline duckwingduck

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Should we cancel our parents whole life insurance policies?
« on: December 10, 2015, 10:38:43 PM »
My parents have had these policies for a long time.  The problem is the premium is high and the benefits is little.  The question is if they cancel the policies, will they be able to get the cash value out?  Or are they trapped? 



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Offline Evil_K_Man

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Re: Should we cancel our parents whole life insurance policies?
« Reply #1 on: December 11, 2015, 11:19:19 AM »
If its wholelife, I would imagine that you will recieve the cash value that has built up on the policy if you surrender it.  If you parents are older now, it might be harder to get cheap life insurance, even if its term. 

If the premiums are fixed and the likelyhood of your parents getting new life insurance is low, then maybe its better to keep it.  In theory, over time and with inflation the premiums should be more managable.



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Offline Giggles_Shyly

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Re: Should we cancel our parents whole life insurance policies?
« Reply #2 on: December 11, 2015, 11:33:41 AM »
My parents have whole life insurance too and semi expensive but to cancel them now would be a bad choice. They are older, plus have more health issues and buying new polices would be a more expensive bad choice than good.

Depending on your circumstances and situation, define the factors and weigh your choices.



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Offline duckwingduck

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Re: Should we cancel our parents whole life insurance policies?
« Reply #3 on: December 11, 2015, 09:20:30 PM »
I don't think my parents need the insurance.  Their kids are all grown up.  And the benefit is less than $100k which you can't do much with it. 



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Offline Evil_K_Man

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Re: Should we cancel our parents whole life insurance policies?
« Reply #4 on: December 14, 2015, 11:32:35 AM »
I don't think my parents need the insurance.  Their kids are all grown up.  And the benefit is less than $100k which you can't do much with it.

It depends...are your parents close to moving on to the next life?  If so it might be a good idea to keep it. 

However if they plan to live for the next 20 years, that's a different story. You should also look up the cost/fees of surredering the policy.  The company might charge you some hefty fees.  I read somewhere, that you can sell the policy to companies who will pay you cash and continue to pay the premiums on your behalf, and once you die, they recieve the benefits of the policy.  Probably worth checking out.

Anyways, good luck on your decision.



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Offline SummerBerry

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Re: Should we cancel our parents whole life insurance policies?
« Reply #5 on: December 14, 2015, 06:56:38 PM »
It depends...are your parents close to moving on to the next life?  If so it might be a good idea to keep it. 

However if they plan to live for the next 20 years, that's a different story. You should also look up the cost/fees of surredering the policy.  The company might charge you some hefty fees.  I read somewhere, that you can sell the policy to companies who will pay you cash and continue to pay the premiums on your behalf, and once you die, they recieve the benefits of the policy.  Probably worth checking out.

Anyways, good luck on your decision.

I'm still trying to do that with one of my policy but just haven't had the time to sit down and really look into it and get the information I need before I make the decision.  It called life insurance settlement but just not sure how long you must have a policy, how much death benefit, etc. 

If my surrender year for that policy is shorter then expected then I might just do it but then finding out it is almost 13-15 yr forget it.  Some insurance company is just 7 yrs. 

There is always surprise you dont know about your policy until you read and understand or question the booklet or the fine print. 

My other 2 policy are with top company so I'm keeping it but it my 3rd policy that I'm doing whatever is best or maybe just cancel and buy a new policy with another company. 



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Offline SummerBerry

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Re: Should we cancel our parents whole life insurance policies?
« Reply #6 on: December 14, 2015, 08:38:30 PM »
I don't think my parents need the insurance.  Their kids are all grown up.  And the benefit is less than $100k which you can't do much with it.

It's your parent so a little insurance can be better than nothing unless you guys are all prepared for funeral expenses when the day come.  There is always dramas and the one that is known to have a little insurance will get the crap like you should take care of it since you're collecting a payout. 

When it was my in-laws they both had a term policy for 20 yrs 50k each but renewed shortly before my fil passed away so we was able to add 20k more to make my mil a 70k policy.  We was paying $1300 every 6 months for the last 7-9 yrs when all the son took part vs before it was always my in-laws paying for it in the beginning.  When my fil passed away we was still paying $1300 alone every 6 months for my mil and then she passed away almost 2 yrs later. 

My oldest bil struggle to pay his portion and borrow from my husband a few time while the youngest brother never did paid a penny but my in-laws been paying for his portion.  At the end he get his fair share/portion of every penny.  My fil funeral was 35k and my mil closed to 30k.  We spared no expenses because my in-laws saved money and had 50k and we just borrow 20k cash from my mil and add 10k of our to make it 30k.  We paid my mil back 20k but she only want 10k and said the other 10k is her part.  That 10k we didn't keep or split we just went ahead and purchased the plot next to my fil for her.  The 10k my mil kept she gave it to my husband to put away in the bank with whatever they had.  When it was my mil....same... 50k was there..... After funeral was over we just split whatever is left in the bank even to 4 part.  Sunshine money and 2 xab mam koom that we belong to bring in about 25k.  One xab mam koom you get like 4k upfront and the other one take time to collect from member who belong in it so it can be anywhere around 1-2 months to get it.  It about 5-7k.  Could be more but people took advantage of it and drop after they are member because it was bringing outside to joined so now we stick with just keeping it relatives. 

Everyone situation is different and see many out there that have dramas.  We are just blessed that my in-laws had it there and prepared that we didn't go through that hardship.  For us tus tub zoo, phem los tsis tsim txaj at the end all gained the same. 

My dad when it was his own mother a mother/grandmother who never really did love us. Funeral was 30k but my dad still had to fork over 10k because there is 3 of them.  For my dad zoo thiab phem los yog yus niam.  My grandmother is shit but her brothers they loved my dad and us greatly. 



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Offline Evil_K_Man

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Re: Should we cancel our parents whole life insurance policies?
« Reply #7 on: December 15, 2015, 11:01:10 AM »
Wow, if you are planning to spend that kind of money on a funeral then it definitely helps to have a life insurance policy.



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Offline Evil_K_Man

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Re: Should we cancel our parents whole life insurance policies?
« Reply #8 on: December 15, 2015, 11:08:34 AM »
My other 2 policy are with top company so I'm keeping it but it my 3rd policy that I'm doing whatever is best or maybe just cancel and buy a new policy with another company.

Why so many life insurance?  Seems excessive.  Are they all on you?



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Offline SummerBerry

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Re: Should we cancel our parents whole life insurance policies?
« Reply #9 on: December 15, 2015, 03:52:50 PM »
Why so many life insurance?  Seems excessive.  Are they all on you?

Had 2 with one agent for a while and then my husband uncle you know...... So gave in and got one which is the one I'm having doubt each day....  Finally yesterday in the mail got the certificate... ..keep changing company like one buying them out..... I still don't care too much for it but need to get another policy that is term at least 30 yrs then I'll cancel it but then the surrender year is 13 yrs... I lecture my husband all the time but then he doesn't care what I do because when I handle and deal with everything  then I get to choose what is best....

We each have 3 policy with the kids being rider on my policy.



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Offline Evil_K_Man

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Re: Should we cancel our parents whole life insurance policies?
« Reply #10 on: December 15, 2015, 04:33:05 PM »
Had 2 with one agent for a while and then my husband uncle you know...... So gave in and got one which is the one I'm having doubt each day....

Ah, I totally understand.  I have a sister in law who does that on the side and she was trying to get me to buy a policy and I told her no, because I already have a good one one from work that is subsidized and requires no medical check ups.

I was thinking about getting one to cover things like funeral, but when I die I don't want any extravagent funeral to keep cost down.  I'm dead already so no need to lose more money on me.  I have investments that can cover that kind of cost.

But you have kids, so makes more sense for you.





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Offline duckwingduck

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Re: Should we cancel our parents whole life insurance policies?
« Reply #11 on: December 17, 2015, 05:31:59 PM »
Hmong funeral are crazy.

Should have spent $30k on the person while they are alive.  Not after they are dead.



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Offline SummerBerry

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Re: Should we cancel our parents whole life insurance policies?
« Reply #12 on: December 19, 2015, 11:28:30 PM »
Hmong funeral are crazy.

Should have spent $30k on the person while they are alive.  Not after they are dead.

Hmong funeral is just crazy because of the expenses and going the short cut doesn't work either.  It has nothing to do with why we spent that much for their funeral it just what it is and not why when they were alive.....

-Funeral home for 3 day average 7-12k. 
-Foods from the start when one is deceased until funeral home is open in either 1-3 weeks most evening there is some minor cooking done in case there is friends, relatives, etc. coming over.  3 day at the funeral home is the most.
-Casket 2-4k
-Plot 7-10k
-Casket  cover 2-3k
-Headstone very basic is 5k. 
-Cow was anywhere between $1000-1500 each

Either way it is still a lot of $$ toward a Hmong funeral and don't matter Chrisitian or Traditional.  You can go big or small depends on your family but still average 20-30k.  We didn't cooked good foods all the time or have it buffet style 2x a day.  We did have one big dish like kapoon or pho with the basic food like beef, etc.  One of my great aunt  funeral her son had buffet style 2x a day and also on the day of her burial they went from Fresno to Glendale.  The same cemetry that GVP is buried.  The plot in Glendale cost anywhere from 20-30k. 



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Offline YangSFG

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Re: Should we cancel our parents whole life insurance policies?
« Reply #13 on: December 29, 2015, 11:25:06 AM »
Hmong funeral are crazy.

Should have spent $30k on the person while they are alive.  Not after they are dead.

If youre Hmong and still have strong traditional ties (elders, clan/group leaders), better expect to fork up 10,000 if youre a married guy.


Ah, I totally understand.  I have a sister in law who does that on the side and she was trying to get me to buy a policy and I told her no, because I already have a good one one from work that is subsidized and requires no medical check ups.

I was thinking about getting one to cover things like funeral, but when I die I don't want any extravagent funeral to keep cost down.  I'm dead already so no need to lose more money on me.  I have investments that can cover that kind of cost.

But you have kids, so makes more sense for you.




Insurance through work is so gimmicky at times. Biggest concern is that its not portable or often times have an option to convert when you leave your job but most likely at a higher cost.



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Offline Evil_K_Man

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Re: Should we cancel our parents whole life insurance policies?
« Reply #14 on: December 30, 2015, 12:11:54 PM »
Insurance through work is so gimmicky at times. Biggest concern is that its not portable or often times have an option to convert when you leave your job but most likely at a higher cost.

Its been pretty solid for me and I only pay like $5-$10 a month for a policy that covers around $300k.

If i can't bring my life insurance with me, thats fine, I'll get it at my new job and probably at $5-$10/mo again.  And if I'm unemployed, then I would rather not have to pay for life insurance.  I'll need that money for basic living expenses until I find a new job.

Sorry YangSFG, people like me just aren't your target audience, we already get what you are offering (less wholelife/index options) from our current companies.

However, if I was with a company that didn't offer life insurance and had dependents of my own, then I will most likely call you/other agents up.



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