gabrewer
Dryer sheet aficionado
Hi all;
First off, if I knew 25 years ago what I know now, I would have never bought a universal-variable life policy. But that's water under the bridge, and I'm trying to decide the best approach for dealing with this turkey. The good news is that I'm well beyond the period of any surrender charges, and the cash value is actually profitable (the underlying separate account is in a Fidelity growth fund). So I'm contemplating a number of possible actions:
(1) Do nothing and let the cash value continue to fund the insurance policy. At present I do still have a need for some life insurance. The face amount is just under $100K, and the cash value is about $29K. Assuming reasonable returns in the future and with continued monitoring, I think this will be enough to keep the policy in force without having to make too many more premium payments, if any.
(2) More actively "leverage" the cash value by taking loans for various purposes. I have this notion of viewing the cash value as an "insurance pot" to pay the premiums on other insurance policies we have -- flood, wife's term life, disability, etc. I envision just continually cycling money in and out as I take and repay the loans. Of course this entails some risk, as it is dependent on my ability to repay the loans. It is also certainly a violation of the KISS principle. Nevertheless I am intrigued by the idea of putting the cash value to greater use.
(3) Rev up the funding of the policy (I don't really make regular premium payments now) with an aim of eventually making 1033 exchanges from the cash value to pay for my LTC policy -- assuming its future premiums don't go through the roof.
I'm just curious if anyone here has found themselves in a similar situation and would like to share their experiences. I'm 57 and had hoped to be retired by now, but uncertainties about health insurance have kept me on the job. Still hope to ease out by 60 or so.
Thanks
First off, if I knew 25 years ago what I know now, I would have never bought a universal-variable life policy. But that's water under the bridge, and I'm trying to decide the best approach for dealing with this turkey. The good news is that I'm well beyond the period of any surrender charges, and the cash value is actually profitable (the underlying separate account is in a Fidelity growth fund). So I'm contemplating a number of possible actions:
(1) Do nothing and let the cash value continue to fund the insurance policy. At present I do still have a need for some life insurance. The face amount is just under $100K, and the cash value is about $29K. Assuming reasonable returns in the future and with continued monitoring, I think this will be enough to keep the policy in force without having to make too many more premium payments, if any.
(2) More actively "leverage" the cash value by taking loans for various purposes. I have this notion of viewing the cash value as an "insurance pot" to pay the premiums on other insurance policies we have -- flood, wife's term life, disability, etc. I envision just continually cycling money in and out as I take and repay the loans. Of course this entails some risk, as it is dependent on my ability to repay the loans. It is also certainly a violation of the KISS principle. Nevertheless I am intrigued by the idea of putting the cash value to greater use.
(3) Rev up the funding of the policy (I don't really make regular premium payments now) with an aim of eventually making 1033 exchanges from the cash value to pay for my LTC policy -- assuming its future premiums don't go through the roof.
I'm just curious if anyone here has found themselves in a similar situation and would like to share their experiences. I'm 57 and had hoped to be retired by now, but uncertainties about health insurance have kept me on the job. Still hope to ease out by 60 or so.
Thanks