What are my options with whole life policy nearly paid up?

by Guest » Tue Dec 23, 2008 12:23 pm
Guest

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.

Total Comments: 24

Posted: Fri Mar 18, 2011 05:19 am Post Subject:

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.



Generally, term life insurance = no cash value. So your question has little/no relevance. Return of premium term policies do have a cash accumulation, but that would never exceed the cost basis (premiums paid), so terminating a ROP term policy early would not incur an income tax liability in most cases.

Posted: Tue Apr 05, 2011 12:37 pm Post Subject:

Whatever you do don't lapse that policy. I would just make the payments and then have the policy pay for itself thought the dividends.

Posted: Tue Apr 05, 2011 05:40 pm Post Subject:

whatever you do dont lapse that policy. I would just make the payments and then have the policy pay for itself thought the dividends.



Please give an example of a DIVIDEND-PAYING term life policy -- I've never seen one since I was first licensed in 1980.

The OP in the most recent thread says his is a "paid up" term policy. I'm not sure he's correct in that statement, either.

Posted: Fri Dec 16, 2011 09:07 am Post Subject: Loan

I converted my term life policy in to whole life policy with a cash value of $14,000, can I make a loan against the $14,000?

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