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Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: But is it a good deal? Date: 3/2/2008 6:37 AM
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Goofyhoofy:

You've done a service to people reading these posts.

We're members of AARP, and we have their Medigap plan because it seemed to be pretty good, but definitely not "free"! (There is no free lunch!)

However, any of these annuities and insurance plans can be pretty lousy. Several years ago, at age 58, I took out a $100,000 term policy (with another company) on myself for about $350/year. Five years later, my premium suddenly doubled; I had forgotten that that would happen! However, when I called, I was able to change the policy downward to about $50,000 for the next five years, and the premium came back down to a bit less than the original premium.

We all need to analyze what we NEED for insurance, shop for the best deals, and then carefully buy. When I took out the original policy, we had a good-size mortgage (now all but paid off) on another home, and my IRA was much lower in value, too. When I dropped it to the lower amount, we had sold that home and moved to a less expensive home, and the mortgage on this one was almost gone.

Eventually, the premium will escalate again and I'll just drop the policy. By then, she can use my IRA or other funds to bury me, anyway.

We shake our heads at those ads promising "units" of insurance, no questions asked, for about nine dollars a month, I think. But what is a "unit"? The ad never says. It DOES mention "building value" so I assume it is whole life vs term. Who needs that in our old age?

People need to look carefully at THEIR needs and also look VERY carefully at offerings available before they plunge in.

Vermonter
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