Skip to main content

Here in Hanover

Sponsored Content

How to Combat Rising Life Insurance Costs

Mar 17, 2016 04:31AM, Published by Family Features, Categories: Family Features, Family Features Lifestyle



For a good portion of Americans, life insurance is a critical component of financial planning. However, in recent months, many seniors have been hit with an unwelcome surprise as several insurers are raising the premiums on their life insurance policies.

When a life insurance policy becomes too expensive to maintain due to premium increases, the owner can be faced with some difficult decisions.

Consider this story: A 75 year-old man owned a Universal Life insurance policy with a death benefit of approximately $500,000, which he purchased to provide income for his wife in the event of his death. Unfortunately, a battle with prostate cancer dealt him a financial blow and the low interest rates took a toll on the cash value in his policy. Then came the sucker punch: the life insurance company was raising his premiums to almost twice what he had originally planned.

He was told that he would receive just $1,006 in cash surrender value from the insurance company. Instead, he contacted Coventry Direct. Through a life settlement, he received $10,000, which he used to supplement his retirement income, getting out from underneath the policy and putting some extra change in his pockets at the same time.

If you are among those policyholders facing an increase in premiums that is stretching you out of your budget comfort zone, it may be time to explore your options. There are a few things you can do to combat rising life insurance costs:

Pay the higher premiums. This may seem like a do-nothing option, but look closer. If premiums are exceeding your budget, then you need to make adjustments to ensure that you can continue to make the scheduled payments or you could risk losing the policy altogether. This may mean cutting other personal expenses, eliminating travel plans or making other changes to your finances.

Maintain current premiums, but take a cut in death benefits. If you find that keeping your policy is creating a financial burden, it may be worth reassessing how much of a benefit you truly need. Reducing the death benefit amount means less money for your heirs, but it may also help prevent the policy from lapsing and leaving your heirs without any benefit under the policy.

Shop for new coverage. Like any other type of insurance, you have the right to explore different insurers for any number of reasons, including escalating policy rates. However, you'll want to make sure that you have a new policy in force before cancelling your old policy, just in case you hit any snags finding a new insurer.

Surrender the policy back to the carrier. Depending on your financial situation, surrendering your policy back to your insurer may be your best choice. Although the cash payout will be a fraction of the death benefit that you had established for your heirs, surrendering the policy will eliminate an annual payment that you may not be able to afford.

Explore a life settlement. As circumstances change, your insurance priorities may change, too, and selling your life insurance policy can make sense. Selling your life insurance policy to a third-party investor, which is known as a life settlement, may be a more attractive alternative to surrendering your policy back to the carrier. Coventry Direct can help you learn whether a life settlement might allow you to sell your policy for an immediate cash payment that could be four to eight times greater than what you would receive from your insurance company.

To learn more about your options and whether a life settlement is right for you and your family, visit coventrydirect.com/lifesettlements or call 888-858-9344.

Photo courtesy of Getty Images

Sponsored by Coventry Direct


Like what you're reading? Subscribe to Here in Hanover's free newsletter to catch every headline



Family Features Family Features Lifestyle


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/26/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • Hope and Hazard: A Comedy of Eros

    07/26/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a group exhibition curated by American artist Eric...


  • David Shrigley

    07/26/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a solo exhibition of work by British artist David ...


  • Ready. Fire! Aim.

    07/26/2017
    11:00AM — 05:00PM

    Ready. Fire! Aim. is a joint exhibition that will take place at the Hall Art Foundation in Readin...


  • Hanover's Farmers Market

    07/26/2017
    03:00PM — 06:00PM

    Wednesdays 3 - 6 p.m. beginning June 7 The Hanover Area Farmers Market will open on Wednesday...


  • Wing Wednesday

    07/26/2017
    04:00PM — 10:00PM

    Join us for Wing Wednesday every week. 50 Cent wings from 4pm until close! (Minimum order 6 w...


  • The Drowsy Chaperone

    07/26/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • The Drowsy Chaperone

    07/26/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/27/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • All Night Happy Hour

    07/27/2017
    04:00PM — 10:00PM

    Our Happy Hour Specials are available ALL NIGHT on Thursdays, starting at 4:00 PM. Discounted...


  • Walden Chamber Players

    07/27/2017
    07:30PM — 09:30PM

    Compositions by Bax, Saint-Saens, Debussy, Ravel, and Jongen. Marianne Gedigian, Flute; Diana ...


  • The Drowsy Chaperone

    07/27/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • The Drowsy Chaperone

    07/27/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/28/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • Rent a Poet

    07/28/2017
    02:00PM — 02:40PM

    Benjamin Aleshire comes to Bookstock fresh from a few weeks in Paris, where he's been making his ...


  • Prime Rib Friday

    07/28/2017
    04:00PM — 11:00PM

    Every Friday. 12oz prime rib served with maple parsnips, grilled asparagus and a baked potato & h...


  • The Drowsy Chaperone

    07/28/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • The Drowsy Chaperone

    07/28/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Hope and Hazard: A Comedy of Eros

    07/29/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a group exhibition curated by American artist Eric...


  • David Shrigley

    07/29/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a solo exhibition of work by British artist David ...


  • Ready. Fire! Aim.

    07/29/2017
    11:00AM — 05:00PM

    Ready. Fire! Aim. is a joint exhibition that will take place at the Hall Art Foundation in Readin...


  • That Takes the Cake: Divine Decoration

    07/29/2017
    01:00PM — 05:00PM

    Learn the techniques you need to design and decorate festive cakes for any occasion. Bring your i...


  • Heritage Pro Am Benefit Polo Match

    07/29/2017
    01:00PM — 04:00PM

    Canaan, NH July 13, 2017: On July 29th at Switch Rd Polo field in Canaan NH, former US Open winne...


  • Heritage Pro Am Benefit Polo Match

    07/29/2017
    01:00PM — 04:00PM

    Canaan, NH July 13, 2017: On July 29th at Switch Rd Polo field in Canaan NH, former US Open winne...


  • Lettvin Chamber Music Series

    07/29/2017
    07:30PM — 09:30PM

    Dates: Friday, July 28; Artists - Anastasia Antonacos (piano) and Patrick Doane (violin) Saturd...


  • It’s “Another openin’, another show!” as Cole Porter’s luscious score fills this raucous romp abo...


  • It’s “Another openin’, another show!” as Cole Porter’s luscious score fills this raucous romp abo...


  • The Drowsy Chaperone

    07/29/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • The Drowsy Chaperone

    07/29/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Hope and Hazard: A Comedy of Eros

    07/30/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a group exhibition curated by American artist Eric...


  • David Shrigley

    07/30/2017
    11:00AM — 05:00PM

    The Hall Art Foundation is pleased to announce a solo exhibition of work by British artist David ...


  • Ready. Fire! Aim.

    07/30/2017
    11:00AM — 05:00PM

    Ready. Fire! Aim. is a joint exhibition that will take place at the Hall Art Foundation in Readin...


  • 2017 HARPOON BREWERY BBQ FESTIVAL

    07/30/2017
    11:00AM — 07:00PM

    We're celebrating summer the best way we know how - with beer, friends, live music, and some of t...


  • The Drowsy Chaperone

    07/30/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • The Drowsy Chaperone

    07/30/2017
    07:30PM — 09:30PM

    Performed by Northern Stage Youth Ages 12-18 Music & Lyrics by Lisa Lambert and Greg Morrison B...


  • This exhibition at Hood Downtown, 53 Main Street, Hanover, will be on view from June 9 through Au...


  • Creative Lives Summer CAMPS

    07/31/2017
    09:00AM — 04:30PM

    Creative LIves Summer Camps help children thrive in mind, body and creative spirit! We will be wo...


  • Kids' Night!

    07/31/2017
    04:00PM — 10:00PM

    Monday is family night at the Latham House Tavern - Every Monday kids 12 & under eat for ½ off! A...


  • Woodblock Printing

    07/31/2017
    06:00PM — 09:00PM

    This basic introduction to woodcut printing will use both wood blocks and soft-cut linoleum block...


  • Stoaked Trail Run

    08/05/2017
    09:00AM — 12:00PM

    The STOAKED trail race is the 6th race in the Western New Hampshire Trail Running Series! It take...


 

 


PROUDLY BROUGHT TO YOU BY THESE COMMUNITY SPONSORS


Northcape Design Build
Hanover Inn at Dartmouth
Ultimate Bath Store

Sean's Lawn N' Garden Services
Cabinetry Concepts
New London Inn & Coach House Restaurant