Said It Here

Is an expensive old age life insurance policy worth keeping?

Older policies sold at advanced ages often cost far more in cumulative premiums than the actual payout, trapping policyholders in cycles where canceling means losing thousands already paid. These contracts usually offer negligible cash surrender values, making it difficult to decide whether to stop payments or maintain coverage solely for a death benefit.

What people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

  1. 1
    asking parent to ask for complete policy documents
  2. 2
    checking on the cash out value
  3. 3
    having the policy reviewed by a professional
  4. 4
    asking for an illustration of what it would cost to keep the policy in force

In their words

Unedited, most upvoted first, each linked to the thread it came from.

“Which means he’s already paid $150K for the $100K in coverage. With a surrender value of $638. These policies are so terrible.”source ↗

LegallyIncorrect · r/personalfinance · 1 upvotes

“They insist getting us some insurance money upon death, which we would rather not have if this is predatory. Is the accumulated value the cash out ($638 yikes)? I explained in another reply that they got discontinued (due to age) then they were given this...”source ↗

Jackdunc · r/personalfinance · 1 upvotes

“Just found out about above, and have no knowledge of this type insurance. Parent is about 80 yrs old. Parent is paying $380 or so a month. Recently denied continuation of previous coverage (assuming term but not sure) due to age, and this was offered.”source ↗

“Just wondering if this is useless at that age, or if they were taken advantage of.”source ↗

Jackdunc · r/personalfinance

Where this came up

r/personalfinanceelderly carefinancial planningpersonal finance

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