Author Topic: Group Term Life Insurance  (Read 1695 times)

pjm123a

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Group Term Life Insurance
« on: August 30, 2016, 06:52:34 AM »
I have a group term life insurance policy with my former company that I took out when I first started working there 30 plus years ago. Originally the premiums were paid via payroll deductions. Eventually I left the company and continued the policy by paying directly. The death benefit is $540k and the premium I am paying is $306 per month. My wife is the beneficiary and 2 kids are the contingent beneficiaries. If I don't die before then that at age 95 the policy terminates. When I started with this policy I had a big mortgage family on the way etc so the coverage was important.

I am now 61 years old and fortunate enough that I don't really need the policy. The kids are on their own, the big mortgage is almost paid off and my liquid savings and investments are $1.3M. So the question is: how do I get rid of this? Just stop paying? Try to sell it to one of those companies that buys these policies? Is there even any value? Is there a better way to find answers to questions like this than just asking the insurance company (Metlife)?

Proud Foot

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Re: Group Term Life Insurance
« Reply #1 on: August 30, 2016, 08:41:23 AM »
Your best bet is to contact the insurance company and ask them.

Jrr85

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Re: Group Term Life Insurance
« Reply #2 on: August 30, 2016, 09:10:45 AM »
I have a group term life insurance policy with my former company that I took out when I first started working there 30 plus years ago. Originally the premiums were paid via payroll deductions. Eventually I left the company and continued the policy by paying directly. The death benefit is $540k and the premium I am paying is $306 per month. My wife is the beneficiary and 2 kids are the contingent beneficiaries. If I don't die before then that at age 95 the policy terminates. When I started with this policy I had a big mortgage family on the way etc so the coverage was important.

I am now 61 years old and fortunate enough that I don't really need the policy. The kids are on their own, the big mortgage is almost paid off and my liquid savings and investments are $1.3M. So the question is: how do I get rid of this? Just stop paying? Try to sell it to one of those companies that buys these policies? Is there even any value? Is there a better way to find answers to questions like this than just asking the insurance company (Metlife)?

I doubt there is any value in selling it.  I pay $148 for about $2M in coverage, with no re-rating the price until age 80.  Obviously I'm not 61, so my rate is cheaper, but I'm assuming there are 60 year olds with similar policies that they took out when they were young who would have similar premiums.  But it never hurts to look into it.   

Goldielocks

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Re: Group Term Life Insurance
« Reply #3 on: August 31, 2016, 02:28:44 AM »
call your insurer and tell them you wish to terminate.   Most are not an obligation on you to continue, just on them to keep providing coverage as long as you keep payting and renewing.   Most group plans are monthly renewable or continuously renewable types, so people to stop working and end payments the same time.