Don’t want your life insurance? Dump it
Life insurance has become a necessity in today’s life. But it is not so much of a necessity that a man in his late 70s should have to pay through his nose as insurance premium. That’s exactly what happened to an elderly gentleman who is into his early 80s. Twenty years ago when he was working, he took a life insurance policy, which seemed a bargain — he had to pay his premium for a few years after which it would build up enough value to pay for itself. While the going was good for over a decade, now suddenly this person finds out that he is being forced to pay a huge amount as premium. He is now retired and doesn’t have the means to pay such a large amount of money.
If I were in his position, I’d dump the policy. I know some people think of a life insurance as an absolute necessity. But believe me, it is not always a good thing to have. Especially if you are in the old man’s shoes. If you can afford it, life insurance is a great idea and allows us to help provide for those we love. But in case of people who are retired, the rules change a bit.
You insure yourself to ensure that your family gets some form of income even after your income has stopped. But in the case of a retired person, his/her income comes from Social Security, savings and possibly a pension. So, it is safe to assume that the death of this person will not affect the standard of living of his survivors. In such a scenario, you really don’t need a policy that is milking you dry.
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June 25th, 2006 at 2:29 pm
I really enjoyed reading your article. I agree with you very much. Life insurance becomes a burden for old people, especially those, who are retired because they are going to die any way and they are paying their premiums. It is good as long as the person is in service.