Life Insurance Auto Premium Loan Provision

[stephenson]

Have AIG whole life policy purchased during Franklin days (around 1994) - probably not the best idea, but we signed up. Policy on two kids and me.

I wasn't monitoring payments and wife stopped paying them - then notices of automatic premium payment through the loan provision started coming.

I understand the basic provisions of how this works, but am looking for bigger picture advice on how to proceed to terminate the policy - or, keep the policy and pay the outstanding loan amounts ...

Don't really need coverage any longer (not sure we did when we signed up) - one kid is 25, well educated and white collar. Othe is 20 and almost through with college. I am 56 and can retire pretty much anytime. Wife and I in good health.

Would appreciate advice on options? Ready to take my lumps

Thanks!

 

[brewer12345]

Assuming you have no estate planning-related reason to keep it, I would either surrender the policy or swap it for an annuity. Why pay up for coverage you do not need?

 

[mickeyd]

Don't really need coverage any longer (not sure we did when we signed up)

You have answered yoiur own Q...time to dump it if you have no need for the LI coverage.