Have a small policy that my parents got for me around birth, currently mid forties, trying to decide if I should keep paying or cash it... $10k base value, addtl paid up $8K, so total payout if I kicked the bucket would be about $18k. Cash value $6,500. I'm paying $80/yr and it paid a $26 dividend last year. What would you do - let it ride, cash it, something else?
Life insurance question
- Thread starter Jwill
- Start date
At your age, if you’re in good health I would price some term insurance. For the same price per year you’d probably be looking at at least $100k in coverage. Once that’s in place I’d cash it out.
If you have health issues where getting additional insurance is a problem let it ride.
It’s all personal planning and choice. I do not look at life insurance as an investment, it’s a transfer of risk (no different than house or car insurance). In almost every circumstance I can invest in a plain S&P fund and get a way better return than anything through whole life insurance.
If you have health issues where getting additional insurance is a problem let it ride.
It’s all personal planning and choice. I do not look at life insurance as an investment, it’s a transfer of risk (no different than house or car insurance). In almost every circumstance I can invest in a plain S&P fund and get a way better return than anything through whole life insurance.
LuketheDog
Well-known member
Are you single? Married? Kids? If there are no spouse or kids in the pic I'd just scrap it and invest in something better, otherwise I'd pick up a term plan to take care of your family if you die.
Brandon270
Well-known member
Like said above, a term life policy has way more bang for the buck if you have a family that relies on your income. I got a $500k 30 year term life policy at age 30 a few years ago and it costs $315/year.
