20 Year Renewable Term Policy and Terminal Disease
I am age 70 and have Stage 4 chronic kidney disease. Stage 5 is considered end of life. I don’t know how long it will take me to get to Stage 5, but once I do, I would have at best a few months to live if I did not go on dialysis, and possibly 5 or more years if I did. I have a 20 year renewable life insurance policy with premiums guaranteed to be level for 20 years at $757.50 a year. I’ll be reaching the end of 20 years in April 2026. Starting at year 21, the rates go up significantly each year. The policy has a column for the rates that “they are planning to charge” (non-guaranteed) as well as a column for the rates that they “could charge” in accordance with the premium change provision in the policy (guaranteed not to exceed). Assuming I could earn 4% by investing the money toward future premiums, it would take 15 years before the investment exceeded the $250K value of the policy with the non-guaranteed premiums, and 8 years with the guaranteed rates. Advice?
submitted by /u/bogartedjoint
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