This is probably one of those repeating threads, but you retired people need the mental stimulation, so here it goes.
I've got a 20 or so year old Whole Life Policy. Turns out it wasn't represented exactly correctly, but such is life.
I'm 61 and FI, trying to figure out exactly when to quit work.
The policy amount is $227,000, and there is an old $10,000 loan we used for a kid's college. The premium, after dividends, this year is around $1200. The cash value is right at $70,000.
What are the options with these policies? We paid the loan down by $10,000 this year and have $10,000 to go. Frankly, while getting $217,000 when I die would be nice for my wife and/or kids, it wouldn't make very much difference to her life style. In other words, she doesn't need it.
I haven't had an agent for years because they just kept trying to sell me more life insurance that I didn't want.
What I can figure out is: 1. Cash out and probably pay some taxes; 2. pay off the loan and let the cash value pay the premiums, probably forever; or 3, just keep paying it. I rather think there are other options, but I'm not savvy enough to know what they are.
Thanks!
I've got a 20 or so year old Whole Life Policy. Turns out it wasn't represented exactly correctly, but such is life.
I'm 61 and FI, trying to figure out exactly when to quit work.
The policy amount is $227,000, and there is an old $10,000 loan we used for a kid's college. The premium, after dividends, this year is around $1200. The cash value is right at $70,000.
What are the options with these policies? We paid the loan down by $10,000 this year and have $10,000 to go. Frankly, while getting $217,000 when I die would be nice for my wife and/or kids, it wouldn't make very much difference to her life style. In other words, she doesn't need it.
I haven't had an agent for years because they just kept trying to sell me more life insurance that I didn't want.
What I can figure out is: 1. Cash out and probably pay some taxes; 2. pay off the loan and let the cash value pay the premiums, probably forever; or 3, just keep paying it. I rather think there are other options, but I'm not savvy enough to know what they are.
Thanks!