What to do with Met Life Ins. Policy

[Adventuregirl]

Hi all, looking for opinions....

When I was 18 my parents had me get a Met Life Life insurance policy, I believe it is considered an annuity. The current death benefit is 38K, it pays it's own premiums, and the cash value is 3K....

Would I be better off taking the cash surrender and investing it? Maybe open a Roth with it? Should I leave it alone seeing as it pays it's own premiums? I am currently single, getting married later this year, no kids, the only debt right now is a 56K mortgage....

What do you think?

Thanks,
Adventuregirl

 

[JPatrick]

It depends somewhat on your other financial holdings etc.  Some of the older insurance products were real bargains (and some not), but you might want to hang on to it for its good death benefit considering you've got a lifestyle change in your near future.

BTW, when I said "older" insurance product, I did not mean to imply you were old.  I'm assuming you are 22 and this policy had a hell of a run.

 

[mickeyd]

Do you need the life insurance?

Forget about the cash value for now.

It sounds like you do not have an annuity but a whole life policy that uses dividends to pay the premium.

If the $38k is part of your life insurance protection program, you may continue to keep it since you are not haveing to pay for it out of pocket and the cash value increases each year.

If you do not need the insurance, you should probably consider cashing it in. Prior to surrendering it though, ask MetLife how much of the cash value proceeds will be takable to you.

 

[Adventuregirl]

You know, I don't really know if I need the life insurance ....I'm in my late 30's, soon to be married, no plans for kids. I have 1X my salery in LI through my work, as long as I'm employed. Fiance says cash it out he wouldn't need it if something happened to me, but I just don't know ......

Adventuregirl

 

[brewer12345]

Do you have a mortgage that your fiance would not be able to handle if you and your earnings were not around? Anyone else that depends on your income? If not, sunds like cashing it in would be appropriate.

 

[Adventuregirl]

No, mortgage + taxes approx. $600.00/month, he can handle that no problem......I guess even if we moved we could always be sure that the mortgage was something that either one of us could pay on our own....and our FIRE plans include a paid off mortgage anyway....

Adventuregirl

 

[New Thinking]

Before surrendering the policy, look at borrowing out the maximum cash value. You most likely will still receive dividends that cover the premium and you will have use of 90% of the cash. It's been paid into so long that sacrificing the future dividend stream may be foolish.