i was diagnosed recently with a critical illness and would like to inquire on possibly selling one of my life plans
great information. I was reading my policy and sounds like I might be able to convert the policy also. The company offers critical illness and disability . Would this be a wise option? I’m a single income parent and self employed daycare provider

 

  • mbrcatz 9:07 pm on October 24, 2009

    Term insurance isn’t worth much. Critical illnesses don’t make a term policy worth anything, unless you’re terminal with less than a year to live.

    Now that you have a critical illness, you won’t be able to buy new insurance – but you should seriously consider converting to permanent insurance, IF you need permanent insurance!

    SO. First assess the goal of the life insurance – probably to provide for your minor children. THEN, if it’s guaranteed convertable, without you having to qualify, get the QUOTE for how much more it’s going to cost you.

    You’ll have to balance that out to see if you can afford it. Keep in mind, generally whole life is about 10X what term life is, cost wise.

  • BEN 9:07 pm on October 24, 2009

    First, you need to check with your insurance if they have critical illness provision which allow insured to take part of the face amount if you have less than 6-12 mo to live.

    If not, depends on where you live. Some state like New York are not allow to sell your own life insurance.

    Let’s say your state is allowed. Most buyer won’t "buy" term policy, because there is no garentee that you will die within your term period, so they can get they money back. In recent year, lots of critical illness can live for extend period.

    20 Years ago, when HIV just found, some investor bought the life policy from those HIV and got burned. Many of them are still much alive and they can’t get the money.

  • Insurance Pickle.com 9:07 pm on October 24, 2009

    Yes. You have to jump through alot of hoops because whoever buys it is going to want to know what their potential profit is. Check with the insurance company first though because you may get the best legit deal there.

  • Elvis 9:07 pm on October 24, 2009

    You need to check if you have "living needs benefits" provision on it. If you have it, you can probably claim a percentage (should be about 70-80%) of the death benefit from the insurance company. Another way is that you can sell your policy to some viatrical companies who buys your policy and provide your a percentage of the death benefit (which is pretty much the same as "living needs benefits" provision). Of course, if you convert your term to a permanent life, most likely you can have the same rating as when you’re still healthy, but you might still have to pay premium for it. However, if the insured dies after the policy has lapsed, the beneficiary cannot claim anything from the term insurance.

    I recommend you to discuss with your agent and see what the best way is to handle such situation.

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