NLIC.org

Irma Said:

Should I continue to pay my term life insurance premium?

We Answered:

If I understand this correctly, what you are really asking is, "Do I want to continue this coverage in force by continuing to pay premium?" because the rest of your statement indicates why you may have taken this policy out in the first place.

So, this becomes a financial planning question, if I'm correct.

It looks like you have taken care of what might be called "burial expenses". Good for you.

Your twins just started college, so you probably want them to get something to finish college should you die in the next four years (college typically takes 5 years these days, not 4).

Those are the only stated concerns that you have. If they are truly the only ones, you have coverage with the level premium left for about four 1/2 more years, or until 6/16/2011.

This appears to be a level-premium 15-year term contract. All insurance policies have a "death benefit" which is the "face amount". Two options:

1) Keep the policy in full force. Pay each premium on time. Do not let the policy lapse for non- or late-payment. At the final anniversary date in 2011, stop making premium payments (your new premium will be huge compared to your current premium - that's what level-premium term plans usually do) and allow the policy to lapse.

2) Reduce the face amount of the policy and get a correspondingly lower premium now. Most companies (not all) will do this for you. Just call policy owner services and ask for the form to do so. Most companies will not let you reduce the death benefit below a certain amount, typically $100,000. Given your twins situation, I wouldn't lower the premium below $150,000.

3) You probably have a "conversion" privelege on this policy that allows you to convert all or part of the coverage to a permanent plan of insurance without the need to medically qualify. The cost-per-thousand on a permanent plan of insurance at your age is quite high and it doesn't sound like you would be interested in that policy feature, if available. But, it's something you should know about before you make a final decision. A customer service rep at the home office of the insurance company can explain this to you.

I strongly recommend that you not drop the policy at this time. Your twins would greatly benefit from being able to pay off any debt or unpaid hospital/medical bills that might have not been covered by your health plan and whatever is left over could be applied to their education and general upkeep until they become fully independent.

An insurance policy is a unique financial instrument in that it turns a promise into cash within a very short time after an event that usually requires liquid cash for any number of important reasons. And, that cash is usually not income taxable.

$302.50 per year is not a lot of money to be putting out for that kind of benefit for your survivors should you die prematurely.

Julia Said:

What disease would put me in Table F of Life Insurance Premium?

We Answered:

My guess is elevated liver enzyme results from your paramed exam. This is a pretty common occurrence, especially if you exercised prior to taking your paramed exam.

Other possibilities are undiagnosed diabetes, kidney problems although i would think these would be less likely.

You are entitled to a copy of your lab results. You need to request them in writing and insurance company will either send to you or your doctor.

As far as the Table F rating - It's not cancer as the company would decline you altogether.

After getting your lab results, you may want to put the policy being offered in-force on a monthly basis.. You can then get checked out by doctor. If you have a problem, your life insurance is already in-force. If it turns out to be a temporary lab result problem, you can shop for a better rate at another company, get new coverage and cancel the old policy.

Here is some impaired risk life insurance info that applies to your situation -
http://www.lifeinsuranceadvisors.com/Und…

Tom Said:

What's a good monthly life insurance premium rate for a healthy female in their early 30's?

We Answered:

The cost or premium of your insurance policy depends on the type and kind of coverage you get under a life insurance plan. Premiums vary from insurance type to insurance type. So, for an identical insurance cover, term insurance premiums are extremely low while money back premiums are extremely high.

Insurers offer many options on paying the premiums. Monthly, quarterly, half-yearly, annual, or one-time all these are premium paying options. Remember, the annual premium-paying option is cheaper than a monthly premium paying option and the one-time premium-paying option is cheaper than the annual one, and so on.

Julian Said:

I'm retired. I noticed my employer stopped taking out my life insurance premium w/o my consent. What do I do?

We Answered:

Usually if you want to have life insurance after you retire, you have to "convert" the policy. I'm not sure how it is with your government agency, but little by little, the private sector has been reducing coverages for their retirees, due to budgetary issues. They don't NEED the consent of the retirees, they just do it.

You're going to have to call your benefits administrator to see what the scoop is with your life insurance.

Tommy Said:

Do bad debts get deducted from life insurance premium's?

We Answered:

You are only responsible for debts that are in your name. If your dad has a car loan in his name only then your mom wouldn't have to pay it. The catch is that his estate would. So the car would have to be sold to pay off the loan and any of your father's other property like his house or his bank accounts. If the house is in your mom's name only then no problem, but if they are both on the note or title, then his ownership of the house would have to stand for the debt.

Sadly, I'm guessing if they have been living together for 20 years both of their names are probably on a lot of this debt.

The cool thing about life insurance is that if you are named as the beneficiary you would get the money and the debtors wouldn't be able to touch it. You could use it to pay for funeral costs and take care of the living parent and the debtors would just have to go after what is in the estate.

Sherri Said:

Is life insurance premium deductible?

We Answered:

Life insurance in not deductible.
Car insurance in not deductible.
Health insurance is deductible.

Melanie Said:

Treatment of life insurance premium for officers?

We Answered:

Ask your accountant about IRC section 142 (executive bonus). That sounds like what you're talking about, but tax guys know tax law better than lowly insurance guys.