Do you have life insurance?

[ExGingi]

I would say mine is well seasoned. 

Most whole life policies are designed to have their costs amortized over the first 20 years of the policy.

[CountValentine]

Most whole life policies are designed to have their costs amortized over the first 20 years of the policy.

Would that be when they are self sufficient? If so not mine.

[ltttc]

Both but the dividends are used to buy paid up insurance. So I am in a great situation where both my cash value and death benefit still increase.

And that's enough to keep cv and db increasing?

[CountValentine]

And that's enough to keep cv and db increasing?

Yes but the policy is 30-35 years old.

[ltttc]

Yes but the policy is 30-35 years old.

And when was it able to "fund itself"?

[CountValentine]

And when was it able to "fund itself"?

Not sure as I never looked at it that close. One day I had them give me a printout with premiums paid from the policy and it was self-sufficient.

[ltttc]

Not sure as I never looked at it that close. One day I had them give me a printout with premiums paid from the policy and it was self-sufficient.

My guess it was sometime around year 20...

[CountValentine]

My guess it was sometime around year 20...

Don't think so. I did this recently and it was barely self-sufficient.
When I bought the policy It was probably 15-20 years based on current dividend scale. The very next year they cut their (MetLife) dividend for the first time every.

[ExGingi]

Would that be when they are self sufficient? If so not mine.

It would usually mean that at that point guaranteed cash value is increasing on an annual basis by an amount equal to or grater than base policy premium.

As for the policy being self-sufficient, it sounds like you're referring to the stage where annual dividends equal or exceed the annual premium. Practically one can usually offset the premium at an earlier stage, by using not only current dividends, but also surrendering previously credited paid-up-additions purchased by dividends (or using the policies option to purchase paid up additions). Doing that will result in the death benefit (which has increased due to paid-up-additions) to be reduced for several years, until current dividends catch up. But even with that cash value would be increasing.

[CountValentine]

It would usually mean that at that point guaranteed cash value is increasing on an annual basis by an amount equal to or grater than base policy premium.

As for the policy being self-sufficient, it sounds like you're referring to the stage where annual dividends equal or exceed the annual premium. Practically one can usually offset the premium at an earlier stage, by using not only current dividends, but also surrendering previously credited paid-up-additions purchased by dividends (or using the policies option to purchase paid up additions). Doing that will result in the death benefit (which has increased due to paid-up-additions) to be reduced for several years, until current dividends catch up. But even with that cash value would be increasing.

Sorry by self-sufficient I meant the cash value increase is more than the premium. The cash value of paid up insurance is included in that. There is no way mine was after 20 years.

[yesitsme]

NO bh

[Lou Bob]

DACOTY?

[Joel]

YES! a few hundred a year well spent

[AsherO]

Shouldn’t the yes response be divided between term and WL?

[Lou Bob]

Shouldn’t the yes response be divided between term and WL?

Not necessarily. People have both.

[AsherO]

Not necessarily. People have both.

So you can have:
- Term
- Whole Life
- Other (some combination of the above, UL, VL etc.)

[jj1000]

DACOTY?

Hopefully he has a few million in a bank account.

[Definitions]

DACOTY?

I think he's mentioned before that it's the shita of stolin not to have.

[skyguy918]

Bought a 20yr term policy around 5 years ago. I can see rates have definitely dropped, so time to reassess.

[AsherO]

Bought a 20yr term policy around 5 years ago. I can see rates have definitely dropped, so time to reassess.

Oh really. Dropped by how much? Is there a way to “refi” a term policy without having to do the hassle of a medical all over again (and risk a lower rating)?