Renew the Review

A healthy 54 year old woman came to one of our absolute favorite agents over in Marin.  She had a $1M UL policy, about 15 years old, with about $80k in cash value.  Here’s the thing- it was supposed to be paid up by now.

But she did a little checking (with the agent’s help), and found out she’d need to start paying $13k a year to get the policy to go to age 100, and that wasn’t guaranteed.

We settled on a $1M policy with a 1035 exchange of the $80k, no premiums for the first 5 years, and then half the other company’s premium beyond that.  Got her coverage, guaranteed, to 105.  She signed up.

And then the roof caved in.  She didn’t get the Preferred we were expecting.  She got a Standard offer.  We held our breath, ran new numbers, and the guarantee went to 103.  Everybody was happy.  Phew.