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Should I cash in our Whole Life Policies?

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guitarhero97
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Should I cash in our Whole Life Policies?  Reply with quote  

My wife and I are both 32. She has two whole life policies. Policy 1 has a death benefit of $25,000 and a cash value of about $4,000. Policy 2 has a death benefit of $30,000 and cash value of about $2,000. Policy 1 is from when she was a kid (It’s about 28 years old). Premiums are about $13 per month. Policy 2 is 8.5 years old and premiums are $36 a month. We do not need the insurance. Since they are such poor investment vehicles, does it make sense to cut our losses and get out, or is there an advantage to staying in?
Post Mon Jan 30, 2012 6:53 pm
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littleroc02us
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Yes always, when you get done paying for all of the fees and with the low return on investment it doesn't work out. If you don't need life insurance then just invest heavily in Mutual funds. Mine have been doing wonderfully this year.

Ronald Reagan once noted the basic difference between Democrats and Republicans. “Republicans believe every day is the Fourth of July,” he said. “Democrats believe every day is April 15th.”
Post Mon Jan 30, 2012 7:30 pm
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oldguy
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I would sell them immediately, that is a poor way to spend $600/yr. Plus $55k of insurance has no practical use for a family. When you need life insurance to protect dependants, you will want $500,000 or a $1,000,000 to raise them to age 21 and pay for their educations - ie, you will want term insurance.

Invest the $6000 in a longterm product where it grows at about 11%/yr and leave it for 30 yrs, should be ~$140,000. (Way more than the $55,000 Very Happy
Post Mon Jan 30, 2012 10:15 pm
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coaster
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Re: Should I cash in our Whole Life Policies?  Reply with quote  

quote:
Originally posted by guitarhero97
We do not need the insurance.

I think there's the main justification for your decision. You buy insurance for insurance and you make investments for accumulation. Making one or the other do double duty results in less of what it's supposed to do in both camps. When a person realizes a mistake has been made, it's almost always advisable to get out ASAP, and doubly so when it's a recurring monthly mistake.

Best wishes and good luck. Smile

~Tim~
Post Tue Jan 31, 2012 7:08 am
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sharonlucky
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maybe...
Post Thu Feb 02, 2012 7:10 am
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jiaopi8888
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thanks for you post and wish you have a nice day
Post Thu Feb 09, 2012 6:16 am
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debedwards
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If your current investment is hurting you financially right now and you feel like you will not gain anything from this, then just get out of it while you still have time. Look for other means to make your money go double or triple at a high percentage rather than take the risk and lose all the money you have saved.

elder care specialist | long term care insurance costs | life line screenings
Post Fri Feb 17, 2012 3:29 pm
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oldguy
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I assume that you are life insurance salesperson? Sorry, I can't help, I am not in the market for life insurance. Very Happy
Post Fri Feb 24, 2012 3:39 pm
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coaster
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The above post references a deleted spam post.

Please don't respond to, reference, or quote spam. It makes for a discontinuity in the thread after it gets removed. If spam isn't removed within 24 hours, please pm Sime or me to take care of it.

Thanks.


~Tim~
Post Fri Feb 24, 2012 4:48 pm
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fast
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Re: Should I cash in our Whole Life Policies?  Reply with quote  

quote:
Originally posted by guitarhero97
We do not need the insurance.

When the presidential hopefuls start telling you that they're gonna get rid of the IRS or slash the budget for necessary programs, be careful to listen closely to make sure they're not failing to tell us how they're gonna handle what was being handled by what they're no longer going to have. In other words, it might not be such a hot idea to tear down a near dilapidated barn if it’s the only thing currently protecting your goods. Make sure you have another up first.

Granted, you said you do not need it, and maybe that's so, but until I hear why it is you think you don't need it, I'd be a little nervous to say get rid of it. Chances are, you simply need to tear down that old barn of insurance, but just make sure you don't do it until you have another barn up and ready to serve you.
Post Sat Feb 25, 2012 2:35 am
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loanuniverse
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How healthy are you? You can probably get $100,000 of term coverage for about $100 a year. The difference in premium of $500 can grow at a much faster rate than inside the policy.

However, this only works if you have excellent health.
Post Mon Mar 05, 2012 1:45 am
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jack1421
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I agree with loanuniverse as he told that it all depends on the health of the person who is taking insurance and if he is alright and of less age then the amount that he had to pay for his insurance will be less and the coverage he is going to get is more when compared to others. spam removed yes thats right it depends on the persons age and then the amount and everything will be set and told to us.[/url]
Post Wed Mar 14, 2012 11:15 am
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littleroc02us
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Just go to Zander Insurance and they can give you a qoute. The only problem with their calculators is that when they eventually consider you for insurance they will give you a lipid test and a lot is based off of that. I am a 41 who exercises everyday and eats well and Zander Quoted me at $40 a month for a 500k term life insurance policy, but my blood test for some reason came back bad and my monthly charge is $50 a month. Not sure why it came back so bad so I had my clinic do another lipid test and it came back just fine, but Zander didn't consider it. But IMO 500k for $50 is just fine with me if it means my wife and kid are taken care of.

Ronald Reagan once noted the basic difference between Democrats and Republicans. “Republicans believe every day is the Fourth of July,” he said. “Democrats believe every day is April 15th.”
Post Wed Mar 14, 2012 2:01 pm
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jack1421
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Thanks for your advice...
Post Fri Apr 20, 2012 10:41 am
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