Which Insurance Policy Should I Dump?


Confused about dryer sheets
Jan 23, 2006
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.
Let me get this straight: you say you don't need either policy, yet you are proposing to keep one? :LOL:

Do you need life insurance? Have any dependents? Anyone who relies or might rely on your earnings to make ends meet? If so, then we can talk about what kind and how much life insurance you need. If not, I'd say you should probably take your lumps up front and cash out both policies. Call it tuition to te school of experience.
If you really want life insurance for whatever reason, get a quote for term insurance. At age 45, it still isn't that expensive, and you can lock your monthly premium and benefit in for 10-20 years.
My first impression would be to get out of both of them. Take any cash you get and put it into a Roth.

I dumped the term life insurance that I had after my accounts got above a certain level.
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