Whole life insurance

Insurance
1

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.

2

So why do you even have this policy if you have another $10,000 policy that will cover everything?

3

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.

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4

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.

5

Pat yourself on the back for your progress.

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6

depends on your age. $92/mo seems high for $25k

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7

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.

8

For someone in your situation, I’ve read experts say that you don’t need life insurance (having no dependents) Insurance must have a purpose. I can see where continuing to pay makes it hard to cancel, but I would cancel. (just me) Do it.

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9

Basically, Life Insurance is primarily to replace someone’s income. These small “Burial” policies are expensive. I’d cash it in and put $100/month in a savings plan. Regardless of your age, if you are not dependent on someone else’s income, you really do not need it. Whole life is nothing but a Term Policy with a savings benefit, which is rarely as good as you can get even at a bank. Term Life is much cheaper if you need it and availible online. Mortgage Life Insurance is just an expensive term policy. You can do that yourself . . . if you need it. If you want to leave something to someone tax free, life insurance will do that.

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11

I’ve decided to surrender my whole life insurance policy. Thankfully I don’t have any surrender fees.