Permanent life insurance

Insurance Life Insurance
1

I just had a meeting with a financial planner. He’s trying to sell me a Permanent life insurance policy.
The premiums are $45000 for the first 7 years. Then no premiums. Benefit amount is about $500k. The policy can be used for Long term care and or death benefit. I can’t the reference where Clark talked about this type of insurance but it seems very expensive. Is this a scam or someone trying to sell me overpriced insurance?

Thanks,

2

There is a time and place for Permanent insurance, but giving a carrier $315K to get a death benefit of only $500K seems a little high unless you are rather old and/or unhealthy. Without knowing all your details about age, health, and what you are trying to accomplish, there is no way to comment or advise.

Is it perhaps an IUL policy with a rider? Is is a LTC hybrid? Who might the carrier be?

In general, buying insurance from a financial planner is likely not in your best interest. He may be just looking at huge commissions, as opposed to your best interest.

3

Agreed. I think there’s a $150 service that evaluates life insurance but the LTC rider is terrible

I think it depends on what LTC care insurance costs. The cost can be $180,000/yr so a $500k life insurance is chump change

4

Thanks. That was my thought as well. It is a LTC hybrid but I don’t see spending $300k for a $500k policy. My wife does have health issues so he’s trying to cover me in the event of her death. The policy can be used for LTC and or death benefit but it seems very expensive. Appreciate your input.

5

Thanks. I had forgotten about https://evaluatelifeinsurance.org and policygenius I’ll look in to those.
Appreciate your input. :slight_smile:

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6

Don’t forget that unlike an annuity, there will be no taxes to your heirs on a whole life policy.

7

Thanks. That was the selling point but is seems too high a price to pay.

9

I, too, remember Clark mentioning purchasing a type of life insurance with LTC benefits. Can’t find it but he may have changed his mind about purchasing the hybrid.

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10

It’s junk because the insurance companies actuaries calculated wrong and then asked for a bailout at the expense of consumers

The state administrator can give insurance companies the leeway to void a contract and rip off (steal) money from consumers

It’s wrong because a consumer paid for a level rate. I’m fine with a policy that uses LIBOR or prime or CPI to make price adjustments if these are specified at the beginning and adhered to