by Guest » Tue Dec 23, 2008 12:23 pm
I have a small whole life policy that I took out many years ago. The policy will be paid up in 2013. I currently have a premium that is due.
What are my options (other than paying until 2013) and the pros and cons of each?
Thanks.
What are my options (other than paying until 2013) and the pros and cons of each?
Thanks.
Posted: Mon Apr 06, 2009 12:37 am Post Subject:
"SD' there are only two forms of life insurance,.... Term or Cash Value.
There is nothing else.
Everything else is just a financing mechanism and marketing.
The purpose of cash value life insurance is to keep your premiums level and have your own cash offset the fact you're getting older each and every year.
Since YOUR cash in the policy becomes part of the death benefit, in my example above, a $10,000 death benefit on a 40 year old policy with $7,000 cash value means the insurance company is at "risk" to pay out $3,000 when the person dies. The balance of the death benefit paid is nothing more than the person's own money being paid to the beneficiary.
Term insurance doesn't have the cash value offset to your own mortality. They simply charge you more money as you get older."
Everything in your description of "cash value life insurance" is description of Universal Life and not Whole Life. And, of course, with universal life, you are getting charged more money as you get older. You may not have to pay more out of pocket, buy you are being charged more every year.
Posted: Mon Apr 06, 2009 08:28 am Post Subject: hi
you can withdraw some amount from your policy if its whole life you cannot withdraw from term life insurance policy
Posted: Wed Apr 15, 2009 12:03 pm Post Subject:
The policy value is $10,000 around exactly . I took it out in 1983 so I'm sure about it thats it is whole life. around 4 years ago, I contacted the company and asked how long the premiums continue on this policy and they told me that it would be paid up (whatever that means) in 2013. I would assume that this policy has a cash value of nearly $10K since I've been paying on it for nearly 40 years.
I guess what I'm really asking is can a policy like this be cashed out before death?
Thanks for your help.
Posted: Wed Apr 15, 2009 03:21 pm Post Subject:
A whole life contract can be "cashed out" at any time for the policy's surrender value. It cannot, however, be cashed out for an amount equal to the death benefit - unless, of course the policy has matured.
Posted: Sat Jul 04, 2009 07:33 pm Post Subject:
The surrender value is $8.52
Posted: Tue Feb 16, 2010 03:04 pm Post Subject: Flexible Premium Adjustable Life
I have (2) $50,000 policies which the following charges increase with time: Expense Charge, Cost of Insurance, and of course the Premium Charge. These policies will become unaffordable to me in future years. I don't have much cash value built up as I had to withdraw money through the years. The policies are with Western & Southern. Should I start shopping for a term policy or try and hang on to what I have?
Posted: Tue Feb 16, 2010 03:42 pm Post Subject:
How old are you and how is your health? If all you want is a guaranteed death benefit for life, you may be able to do a 1035 exchange to transfer the cash value to a guaranteed universal life policy and "buy down" the premium. Do you want the policy guaranteed for life, or do you only want it guaranteed for a specific period of time?
Posted: Tue Feb 16, 2010 09:15 pm Post Subject:
For educational purposes, JES 1958 has current assumption universal life insurance policies. Dgoldenz has brought up a good point, that it may be possible to 1035 (transfer the money without paying taxes on gains to another policy) the money to a secondary guaranteed universal life insurance policy, which is permanent no cash value (even if it says there is ;)) life insurance. Term to age 100 or infinity, or whatever you want to call it, so long as you pay the premium.
To also address the question, are you currently losing money in the contract due to charges? Or is the account value still rising as you pay premiums. How long have you had them?
Posted: Mon Mar 29, 2010 11:08 pm Post Subject: whole life matured
my whole life policy has matured. All premiums are paid. Should I take the cash value now? I will be 90 in 6 weeks and I'm healthy. Thanks.
Posted: Wed Mar 09, 2011 03:10 pm Post Subject: paid up life ins. policy
My term life ins. policy has been paid up for awhile. I have other ins. policies to cover my expenses when I die. I need the cash value of this policy now. Do I have to pay Fed. Income Tax and State Tax on it when I file next year?
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