Happy 100th Birthday, Your Life Insurance is Canceled!
As more Americans live past 100 anni, they are confronting a disappointing realization: their permanent life insurance gets canceled.
The age limit was not a problem when few people lived past 100, but the US population of Centenarians has grown in the past 30 years with advancements in medical care and lifestyle changes.
There were an estimated 53,364 Centenarians in the US as of Y 2010, up from 37,306 in Y 1990 and 32,194 in Y 1980, that according to US Census data.
“Since the mid- to late-2000s, the industry has used age 121 as the standard maturity date in new contracts,” the newspaper reported. “But an unknown number of older contracts with the 100-year-old limit remain in consumers’ hands.”
The WS-J profiled a 99-year-old man whose 2 life insurance policies valued at $3.2-M will be canceled by Transamerica Corp. when he turns 100 in September.
His family sued the company, saying he paid more than $1.5-M in premiums over the years. Transamerica, a unit of the Netherlands’s Aegon NV, (NYSE:AEG) said it acted properly.
“It is a standard feature of permanent life insurance, a product combining a tax-deferred savings component with a tax-free death-benefit,” according to the WS-J. “The provision calls for the termination of the death benefit and payout of all of the built-up savings when the policyholder reaches the specified age.”
‘Tomorrow a Seattle-based startup that this week received $2.6-M in seed funding from investors, created an app to help users buy life insurance and plan an estate.
The mobile app provides assistance in establishing family roles like guardian, executor, or trustee; create free wills and trusts; list assets; buy life insurance; and more, all from their Smartphone.
The app is intended to let families prepare themselves for future legal and financial protection, Geekwire reported.
“Ultimately, ‘Tomorrow’ combines many of the tools used by the wealthy (like Trusts, Wills and insurance), and makes them accessible and affordable for everyday Americans,” Tomorrow founder Dave Hanley said in an interview.
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