Last week’s Tip elegized a “tough” health insurance renewal.
Some of you may recall my insurance career started with a brief stint selling life policies. (A trip down memory lane HERE. Miss you, George!)
Well, here’s another toughie.
Back in 1987, George rewarded a loyal kitchen staffer of 20 years with a modest life insurance policy; i.e., death benefit of $84,500. When George died, ‘Millie’ continued the $73.45 monthly premiums.
She’s 87 now, feisty as
ever and in great health; the women in her family have mostly been centenarians!
She got a letter from ‘The Des Moines Life Company’ stating her policy is underfunded and, unless she increases the payments, it will lapse on November 9th.
The letter proposed several options; e.g.,
A premium of $1,234.65 monthly would keep the same death benefit in force to age 91. (Big whoop dee doo!)
A premium of $196.07 monthly would keep a reduced death benefit of $15,000 in force for life.
Surrender the policy now for $3,671, but every day that amount shrinks; $0 on November 9th.
A few Tips readers offered some good ideas last week about the 41% health insurance increase.
What have you done for me lately?!
