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kacaju
03-17-2008, 09:04 AM
I have a question. My husnband and I took out life insurance policies back in Dec. 2001. We have a cash value to these policies, which I have been reading up about and it doesn't seem like they are really worth it to have.
My question is, can we convert these to a term policy? if so will we risk losing the insurance all together?
My dh had major heart surgery 3 years ago. (he was borm with a defected heart valve) so he has a mechanical valve now. Because of that he has been denied any addition insurance. I don't want to risk losing this if we can't change it.
TIA

tedhowe
03-17-2008, 09:19 AM
I have a question. My husnband and I took out life insurance policies back in Dec. 2001. We have a cash value to these policies, which I have been reading up about and it doesn't seem like they are really worth it to have.
My question is, can we convert these to a term policy? if so will we risk losing the insurance all together?
My dh had major heart surgery 3 years ago. (he was borm with a defected heart valve) so he has a mechanical valve now. Because of that he has been denied any addition insurance. I don't want to risk losing this if we can't change it.
TIA

I'm totally an amateur at this, but I don't think I've ever heard of a cash value insurance policy that can be converted to term. It is normally the other way around (term to whole or universal life).

If your DH has difficulty adding on insurance, then it's likely you will have to hold on to the cash value insurance on him. You can always apply for a term policy elsewhere and see if he can be covered.

The important thing about life insurance is NEVER cancel an existing policy until and unless you have the replacement coverage in hand (really have the policy in hand that says it is already in force) - especially if there is something in your medical record that could cause you to have difficulty getting new insurance.

All that being said, if there are no problems in your health history, you can change your insurance policy to term and save some money even if your DH needs to keep the current policy.

Ted

OlderMan
03-17-2008, 09:51 AM
As a former life insurance acuary, DON'T cancel until you have something else in hand--and not just a conditional receipt, either, but a new policy.

Since your husband had recent--relative term--surgery, he probably does NOT qualify for a new policy at standard/preferred rates. He MAY qualify for a new policy, but at a "sub-standard" rating. Different companies may have different underwriting guidelines.

Keep what you have now while you investigate what may be available.

As I said DO NOT CANCEL your existing coverage unless/until you have a new policy in hand.

If you wish term insurance on either of you, you must cancel the existing policies. The replacing agent must be informed of this, and your current company will probably attempt to keep your current policies in force.

kacaju
03-17-2008, 10:07 AM
Thanks!! We have a few different policies, through his work, term ones from his former job that we were able to keep and pay ourselves, and then these.

I have no plans to cancel them.

I real don't understand all of this and am trying to read up and learn more. We bought these a year after kiddo #3 was born and the agent that took over for the one we had was a fast talker and talked us into these. In a way it is good because since the surgery he has been unable to get insurance except at a high cost.