Is there any reason not to cancel a life insurance policy and take the cash value?
I have a life insurance policy benefits $39,975 with a cash value of $11,675,00. I pay 668.84 annually. The policy should expire in 2025. I own my home and have death benefits with a funeral home. My wife and I are both on Social Security.
Answers | 3
For example, if you are a healthy, non-tobacco-using male at age 62, I could take your $11,675 and use it to purchase a single premium whole life policy somewhere around $20K that would more than cover any additional final expenses or provide additional income to your surviving spouse. Obviously your age and health will impact the amount able to be purchased. Doing something like this would save you the annual premium.
But if there is truly no need for a life insurance policy - meaning no one will suffer financially upon your passing - then by all means, use the cash value to pay down any other debt you may have.