My father has a Flexible Universal Life Policy with Farmers Insurance. I had no idea this plan existed until recently and my parent's first language is not English as they immigrated to the states in the 80's.
Policy Purchase Date: 1999
Father's Current age: 84
Policy Type: Universal Life
Maturity Date 9/2/2038
Death Benefit Option: Increasing
Face Amount $250,000
Surrender Amount: ~$1,800.
Annual Payment for Base Plan: $14921.64
Premium Payments made so far by my understanding should be the ~15k * 25 years. However my parents keep saying they have been paying the premium monthly since day one and it used to be a lower premium. I have no history of seeing this and need to follow up with my Father's agent. Lets assume it is 15k*25 = $375,000.00
We are not in a horrible situation financially but we aren't living without any financial stresses either. I am in the process of planning a wedding and trying to figure out future living situation.
Do we allow this policy to lapse or should we continue paying it with the hopes of having some kind of payout at the time of his passing? He isn't in horrible health.. but he did also have a heart attack earlier this month. I am at a loss for how to approach this as I can't get straight answers from them, and I am already livid with whoever their agent was for taking advantage of my parents lack of complete financial understanding, and am hard pressed to trust their judgement on the matter.
Any help would be much appreciated here.
Thanks and sorry for the long post.
Policy Purchase Date: 1999
Father's Current age: 84
Policy Type: Universal Life
Maturity Date 9/2/2038
Death Benefit Option: Increasing
Face Amount $250,000
Surrender Amount: ~$1,800.
Annual Payment for Base Plan: $14921.64
Premium Payments made so far by my understanding should be the ~15k * 25 years. However my parents keep saying they have been paying the premium monthly since day one and it used to be a lower premium. I have no history of seeing this and need to follow up with my Father's agent. Lets assume it is 15k*25 = $375,000.00
We are not in a horrible situation financially but we aren't living without any financial stresses either. I am in the process of planning a wedding and trying to figure out future living situation.
Do we allow this policy to lapse or should we continue paying it with the hopes of having some kind of payout at the time of his passing? He isn't in horrible health.. but he did also have a heart attack earlier this month. I am at a loss for how to approach this as I can't get straight answers from them, and I am already livid with whoever their agent was for taking advantage of my parents lack of complete financial understanding, and am hard pressed to trust their judgement on the matter.
Any help would be much appreciated here.
Thanks and sorry for the long post.
Statistics: Posted by diehard11 — Mon Nov 18, 2024 10:37 pm — Replies 3 — Views 183