11/19/2012    

RETIRED PODIATRISTS IN THE NEWS

NJ Podiatrist Warns of Universal Life Insurance Danger

In the next few years, millions of savers are in for a surprise that could cost them tens of thousands of dollars now—or hundreds of thousands later. The reason: Universal-life insurance policies bought years ago when interest rates were high will face cancellation if policyholders don't pay more. Vincent Romeo, a 66-year-old retired podiatrist in Monroe, NJ, realized about a year or so ago that his universal-life insurance policy and another for his wife could run out of money within a few years unless they kicked in more money.

"Things were not the rosy picture that was painted" at the point of sale, he says. "It was a little bit of my fault. Buyer beware." Dr. Romeo ended up moving the policies' remaining cash to new policies that carry a guaranteed death benefit as long as the couple pays specified premiums.

Source: Linda Scism and Joe Light, Wall Street Journal [11/16/12]