Budget Crisis - Drop my 20YT or WL?

Posted in Life Insurance Questions over 2 years ago, 3 replies

We need to lower our monthly expenses.

We have about $150,000 in a 20YT which is $43.00 per month for my spouse and I.
We have WL policies of $83.50 per month for 25k and 50k.
I really want to drop the WL and convert the 20YT later when we can afford. I need to not be stupid about this. Any advice?
And please don't try to sell me something with "I can get you better rates." That's not what I'm asking.
Do I keep the 20YT or the WL?

submitted by Atara in Louisiana

If you really need to cut costs then drop the WL. I think the protection that the death benefit provides is the main reason for having the insurance. If you have had the WL policies for long enough ( I would guess about 8 to 10 years) then the policies could possibly carry themselves and you would be able to keep them. You might also be able to use the dividends to offset the cost of your term life policies. If the WL policies are non-participating then of course, this would not be an option. For more info, write me at aferriulo@sbcglobal.net

submitted by AL Ferriulo in Fort worth, TX @ April 25, 2009 - 10:53 PM

Have you considered lower other monthly expenses besides life insurance?

Do you have cable? Netflix? Eat out often?

submitted by Andrew Burks in Salem, IN @ April 27, 2009 - 10:48 AM

Yes, we have cut back on many things Andrew. Sadly, including Netflix. We eat out once every other month and no more than 30 bucks. We are very frugal.

I think the underlyin gissue is that I never really wanted a term policy but our agent sold us one saying "he couldn't sleep at night" knowing we didnt' have enough coverage.

I think that "enough coverage" is different for everyone.

I ended up keeping the WL and dropping the terms.

submitted by Atara in LA @ May 10, 2009 - 03:08 PM

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