Advice on aging parents life insurance ($1400 premium)
TLDR – 70 year old parents didn't plan for retirement, they can almost retire and be reasonably comfortable but they have a $1400 a month life insurance premium that is pushing them to keep working because that $1400 is the difference of their passive income. What are their options with the life insurance plan?
My parents are still working in their 70s and looking to retire but haven't planned very well. They are in the situation where they can almost comfortably live on their SS/Retirement and some other miner passive income sources, but they don't have quite enough on a monthly basis to stop working. I'm looking into their finances to hopefully help them navigate into retirement and I've discovered their insurance plan monthly premium for my father is $1400 a month which is a big financial burden on my parents.
I am going to visit them later today to sit down and access their plan and look into options but based on some pictures of statements they have sent me I know this about the insurance plan-
Provider – New York Life Insurance
Total Death Benefit – $617,314
Premium – $1400
Total Cash Value – $12,500
They have had the plan for 41 years but this is some kind of plan where they renegotiate the premiums ever 4 years or something like that and another renewal is coming up and their premium will almost assuredly go up again.
Due to family dynamics there is no interest in any family taking on the payment for my parents. It is very likely my father will perish in the next 1-5 years due to health conditions, so that is a factor for them as well in all this.
I'm trying to identify their options and all I can come up with is keep paying the premiums or surrender the plan and take Total cash value of $12,500 after paying for 41 years, but escape the $1400 a month payment.
Are there any other options?
submitted by /u/Somuchcurious
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