No. of Recommendations: 0
Hi -
Hopefully someone can help me out. I know _nothing_ about life insurance, but I am Dad's POA and now have to deal with his life insurance policies.

Dad is in nursing home. He is 90, had a stroke last March and is now disabled.
His income is from Pension, SS and VA benefit.
He has 3 policies with Commonwealth Annuity and Life.
Also has another Policy with Lincoln.

The three policies with Commonwealth have loans on them. He has been getting loan interest due notices for years that he does not pay. The interest amounts have been capitalized into his loans. I don't have all the information, but I believe the interest rates on all 3 loans is 5%. The premiums are being paid auto-magically on a monthly basis.

Loan 1 $4,539.81 (ordinary life policy)
Loan 2 $5,328.24 (low rate life policy)
Loan 3 $6,956.61 (low rate life policy)

I'm trying to decide if it is cost effective to 1: start making payments on the loans, or 2: to pay just the yearly interest due, or to 3: not pay anything on them other than the premiums.(which is what Dad had been doing.) Maybe snowball them?

I'm in the process of changing the beneficiary over to my mother. (previously was my oldest brother who is now deceased.) We are planning on putting the family house up for sale starting in the spring, and still owe an equity loan on the house. (possibly rent to owning house? something else I need to research)(mom, 84, currently in an apartment, family home is in need of repairs.)

Dad does not currently have a burial plan. I think the plan was to use the insurance payout to bury him; when the time comes.

Can anyone make any suggestions?

I would really like to make the best financial decision on this one.

Lady Ianna
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.