Tuesday, July 24, 2007

Retiree Life Insurance Information

I just received a letter from Prudential, advising me that my Basic Life Insurance is reduced back to the minimum, since I am retired.

They give me the option of keeping the full amount, but the premium is quite high. This has NO bearing on the GUL (Group Universal Life) policy, which I also have through Prudential. For those who have recently retired, it might be wise to get financial advice on how to handle this situation. Since there would be no medical checkup to increase your coverage, this may outweigh the higher premium cost. Prudential will allow you to take the increase, and not bill you for around 30 days, after which you can decline the increase without incurring any penalty.