Retired senior citizen with no debt

General
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Hi peeps

TLDR - Should we terminate this policy?

My 62-year-old widowed mother has been paying $55 a month for a $50K Primerica policy since 2010. She rents with a roommate, doesn’t own property, and her car is fully paid off. She has no debt. Before retiring, her income was less than $40K a year. My brother and I are grown, and no one depends on her income. I’m doing well financially, and the cost of a funeral is not a burden.

I care because I help cover her expenses, so any money she wastes comes back to me. Her friends are upset about canceling the policy, saying it’s hard to get life insurance after 60. I’ve explained that she’s paying for something she doesn’t need since she has no expenses. She sees it as an inheritance and is upset she’ll leave us nothing, but I assured her we don’t mind.

Now she’s pressuring me not to cancel it. Her post-retirement income will be around $30K a year. Should she cancel the policy or keep it?

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It’s a term policy, and the price will start rising sharply soon.

Get a copy of the policy. It will have the premium schedule, showing when the price will increase and how much the increases will be.

This will help you make a better decision.

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Are you sure it’s term? That premium is not good.

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It’s Primerica. It’s really an expensive term. :thinking:

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I say it’s an expense she doesn’t need. Primerica sells only term,and expensive term at that. If you guys are independent and don’t care about it, just cancel it. She’ll get over it.

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Hi,
Get her into a whole life policy for $10-$15K if you can. That’s the average cost for final expenses like burial. This will help cover those costs without majorly impacting your own finances. If she’s in decent health at 62, she should get a good rate that won’t increase with age. Plus, it will build some cash value that she could use later for things like a major car repair. Also, make sure to add AD&D and accelerated riders. Mutual of Omaha is a good company to consider.

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If she doesn’t need it and outlives the policy, it’s wasted money. If it were my mom, I’d cancel the policy in this situation.

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Before you cancel, find a broker who can compare prices from different carriers. Insurance rates depend on age, sex, and health, so any new policy will consider those factors. Also, call the Primerica rep to get a copy of the policy if your mother doesn’t have it.

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Insurance is based on age, sex and health.

And in this case, it’s likely a unisex rating, with no gender discount.

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Thanks! I think it says that when she hits her 70s, the cost will be close to $200.

Actually, can you explain this part: The chart says at age 70, the scheduled premium is $55, but the maximum modal is $170. Does that mean they could raise the premium based on other factors?

At 78, the scheduled premium is $55, but the maximum is $370. Then at age 83, the scheduled premium jumps to $800.