Life Insurance Policies May Have Hidden Expiration Dates
A recent article published by the Wall Street Journal has gotten some wheels turning and has caused some questioning to go around about the possibility of hidden expiration dates that are nested in many life insurance policies. In their research, the Wall Street Journal discovered that many life insurance policies are designed to end once the applicant reaches the age of 99. Of course, this age limit was set by insurance companies under the notion that very few of their clients would live to that age. However, now that medical advancements have been made, more and more seniors are living longer. In fact, the age that many life to has spiked by 44% since the early 2000s (Source). With that in mind, many seniors are faced with the impending issue of their life insurance expiring before their passing.
The Issue with Life Insurance Expiration Dates
Depending on the policy–and the insurance company– seniors could be faced with an issue regarding the expiration date of their policy. Now, let it be said that it is the hope and dream of every family member for their loved one to live a long, long life. However, there’s a reason that families purchase life insurance–to be sure that, in the event of their death, their family is well taken care of and will not face any financial burdens. An age-expiration date on a policy can change all of that.
In the event a family member lives past the age of their policy, a number of things could happen. In many circumstances, the policies could very well be terminated, and the death benefit that was supposed to go to the family would be paid out as the sum of the ‘built-up cash value’ of their 100th birthday. So, instead of your family receiving the millions of dollars that the policy promised to pay out in the event of their loved one’s death, it may be replaced with a sum as small–in comparison of what they should’ve received–as $100,000.
In many cases, it may be too late to change the guidelines and restrictions to your policy and it would be wise to speak with an attorney about what your best options are.
With this in mind, it is highly suggested that policy owners read carefully through the guidelines of the life insurance they signed up with; there are very few policies that have an age limit of 121 and far too many with an age limit of 99. Luckily there is legal action being taken regarding the ridiculous age limit. Many want to change these guidelines and extend the life limit to a more reasonable age. However, in the case of law, who knows how long it will take for proper measures to be granted.