Solutions 4 Financial Independence: 11/28/17

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BRIDGEPORT, W.Va (WDTV)- Question: I have always had a term insurance policy for almost 20 years, I recently received a notice that it will go up. What should I do at this point?

Answer (John Halterman, Beacon Wealth Management): "Well Mary Beth, what it sounds like is you have what they call a 20 year term plan or 20 years certain. All that basically means is that you pay a level premium for 20 years.

At the end of that period, you have to start paying the new premium or you can let the policy lapse or convert it to another type of policy."

Question: Can she keep the insurance plan she already has?

Answer (John Halterman, Beacon Wealth Management): "Yes, she can keep what she has, but there are a couple steps I think she should look at.

The first thing is you always have to look at adequacy. What that basically means is do you still need the insurance? Too many times people purchase insurance because it sold to them by an agent. But what you really have to look at is what is the purpose of it is, and do you need it?

The second thing is you have to look at the appropriate type of product. Whether she keeps this insurance, which she has the ability to, she can either pay the higher premium, she could convert it to a permanent plan.

But she has to look at what type of plan is most appropriate for her. Without knowing all the details, I can’t say she should absolutely keep it. But it’s definitely an option that she has."