So think of it like this:
At say the age of 32 let’s say she was paying $50 a month (to illustrate my point). At that age her cost of insurance is say $10. So when her $50 is sent in, 10 goes into insurance pocket, 40–placed in a “cash value, interest bearing” pot.
As the years go by, the cash value grows. But every few years, bc of age—the cost of insurance—increases.

So the portion the ins co keeps rises, the amount going into cash value lessens—but it’s still there just not growing as strongly.

Finally at some point say at 55-60 years old, what she’s paying is entirely and just the cost of insurance. All continues…

But at some point, the $50 a month is not enough for the cost—maybe she’s 68 at this point.

So the company each month, continues to take the $50, AND the difference it needs to cover her cost—it draws it from the cash value.

So now the cash value starts to slowly decrease.

And then—when cash value is empty: a letter is sent out:

Policy is going to lapse—please pay more if you want this policy to remain in effect.

And that $50 premium—-can be an insane amount like what Toni shared happened to her dad.—much, much higher.

Pains me just to think about it. It’s uncalled for—these clients need to be mailed, visited and advised every 2-5 years at a minimum so these errors are corrected. But again—

It’s a revolving door of agents…many who themselves wouldn’t catch it or know how to figure out if it’s a problem.

Sad. To say the least.