I’m trying to decide whether to keep my $25,000 whole life policy or not. I’m single, retired and don’t have any dependents. I’ve had it for 4 years and pay $92.00 per month. The surrender value is $1,326, the cash value is $1,312. I have my cremation paid for in full and a $10,000 life insurance company with my former employer that I don’t have to pay for. Just wanted to get some other thoughts on this.
So why do you even have this policy if you have another $10,000 policy that will cover everything?
You do not have a need for a life insurance policy. The surrender value of $1300 is likely insufficient to meet annuity policy minimums to do a 1035 exchange to an annuity. You can obtain expert opinion from James Hunt with the Consumer Federation of America but not cost effective (the current charge imay be $125) for your policy’s small surrender value.
I got the policy when I divorced. At that time I forgot about my other policy and in the last year I’ve been reviewing my expenses with a clear head.
Pat yourself on the back for your progress.
depends on your age. $92/mo seems high for $25k
I am beginning to realize that it’s high. I’m 68 and I’ve had it for 4 years. Because I have no dependents, I also realize that I don’t need it and that there are other ways to leave money for my family.