How to get out of a permanent life insurance policy?

Question

I took out a $100k permanent life ins policy a few years ago when my husband was a medical resident. We didn't have much money and the policy would help out with house payments and funeral should I die.

Now he is in private practice, we have a nest egg (much more than the policy is worth), and I am no longer working. So I bring in no income and we have no children - we don't need a life insurance policy on me at all.

Also, this policy costs $75/month. That's $900/year (more than I spend in gas for my high octane gas-hog vehicle). Yes, I know, stupidly high price to pay.

I called to cancel the policy and the rep wants to meet with me about how good of a policy I have. I know the approach he'll take. 1) you have ultra-preferred status - not everyone is eligible for this 2) this is an investment vehicle (albeit a very bad one)

So please give me some fuel to fight the hard-sell I am going to get in a few days. Thanks!

Answer 1

You won't get anywhere by trying to reason with him. I cancelled a whole life policy last year and the agent gave me the run around for a couple of weeks before he finally sent in the cancellation papers.....AND I WORK FOR THE COMPANY!!!!! Remember, he's had many years of training to debunk every one of the reasons you come up with. You should be firm with him and make sure he gets the cancellation papers signed IN FRONT OF YOU. Otherwise he might let it slide for a few more weeks. Stand your ground and don't let him sweet talk you into another "rip-off" product. If you buy anything, make sure it's level term.....but remember...in the end....it's you and your husband's decision.

Answer 2

You do not need fuel to fight this. If you want to get rid of the policy then stick to your guns. We did the same thing last year because the premiums were just too high.



Couple of things we learned through our own research:

- The nice thing about permanent insurance is that it never expires. With term it is going to be for either a set period of time or the payout will get smaller and smaller (or the premiums get larger and larger).

- With most permanent policies, you have options to purchase more health insurance without a physical at specific points, usually birthdays every 3 years or something.



While we did the same thing, we did purchase a 30 year level term policy that is convertible to permanent if we so decide. We did this, thankfully, since now my wife might be uninsurable due to several skin cancer occurrences. Also, the reality of it is that your stability is based entirely on someone else, your husband. What if something happens to your marriage? Make sure you have something there as a fallback. If you can afford the $75 a month, you are probably at a point where you should just keep the policy.

Answer 3

You just cancel it, period (cease paying the premium). Don't talk to the sales reps, they just want to talk you out of it.

Consider getting a level term life policy to replace it - much cheaper and you can bank or invest the saved premium money.

Answer 4

Just tell them you don't need the policy anymore,end of story.