universal whole life policy

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dekecarver
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Joined: Mon Feb 22, 2010 10:24 am

universal whole life policy

Post by dekecarver » Fri Nov 24, 2017 12:56 pm

Hi, I'd appreciate some feedback for my dad who purchased a universal whole life some years ago for 50K that now has a cash out value of ~60K and a 100K benefit upon death. He is trying to decide whether to keep up with the annual service fee of ~$2300 or cash it out. He is 79.

Thanks in advance and if additional info is needed I will provide.

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mickeyd
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Location: Deep in the Heart of South Texas

Re: universal whole life policy

Post by mickeyd » Fri Nov 24, 2017 1:18 pm

The usual response to these kind of questions is ~ If he still needs the $100K insurance coverage, keep it until he no longer needs it. If that original need for LI is no longer an issue and the CV can be used to make life easier today, it might be time to cash it out.

Hope that helps.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

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David Jay
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Location: Michigan

Re: universal whole life policy

Post by David Jay » Fri Nov 24, 2017 1:30 pm

To echo the first reply:
1. What was the purpose of purchasing this policy?
2. Does that need still exist?

All insurance policies are insurance (i.e. insurance policies should not be used as investments). You should only keep them as long as you need them.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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