Which Insurance Policy Should I Dump?
Here‘s the scenario:
I’ve had two Whole Life policies for approximately 3 years. They are similar in most regards(monthly cost, coverage, etc….). EXCEPT :
Policy A(USAA) has done surprisingly* well (for an inefficient vehicle) and has built up cash value and paid-up additions quickly--it is worth about what I have put into it.
Policy B (NYL) is a total pig and has been* ridiculously inefficient and expensive--high cost, commissions, etc…..
I really don’t need either of these policies, but I sure don‘t need both. In fact, I didn’t need them when I bought ’em since* I am single and have a little bit of net worth.* One was purchased* in sympathy for an old friend the other was to prove what a rip-off the first one was.
I am well aware that this was not one of my best decisions. I fell for the “get coverage while you can” and* “life insurance as estate planning” pitches.* Also, six percent return didn’t sound so bad after the equity melt-down of 2000--02.
At the time, I was not in ER program mode and so the money I spent* was not missed but now I am certain that I could put this money to work in a better place.
My guess is that most of you will say I should get rid of both of these* policies, but………..
My* question is this:
If I want to unload one of these, which policy should* get the boot?
Should I cash out of* the better policy that I can break-even on and keep the(thus far) inefficient policy B* with all of the sunk-costs or should I keep the relatively more efficient policy A and cut my losses* by punting the stinker?
If you need more details I will happily provide them.
Thanks in advance.
Things are not as they seem........ nor are they otherwise.