I truly do not understand the subtleties of life insurance (except that whole life policies are, generally, bad news). My wife and I are having a discussion about an ancient policy of mine and I’d sure like some knowledgeable opinions on the matter.
I’ve had a MetLife whole life insurance policy since I was around 21 (I’m 67 now). Just got the most recent statement:
Amount of insurance:
Dividends with interest:
Our current dividend of $271 will be left to accumulate with interest.
I suggested to my spouse that we cash it out and invest the $6,122 dollars into a good quality dividend paying stock (I have a dozen conservative “aristocrat” stocks through ETrade that have done very well). She thinks the interest we’re making on this whole life policy makes it wiser to hang on to it. I pointed out to her that all that policy is worth, should I predecease her, is around $4,000 dollars ($10,000 minus $6,100).
Which option makes the most financial sense.
Rich Cape Cod/AZ