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And put it towards cc bills? I have a term life policy for $200K already, but my dad turned over a small policy he took out on me years ago. It's has a death benefit of only $11K and a cash worth of about $2K. It seems to me that it will be forever until it is worth much and I already have the other policy for $200K. So, should I just cash this one out and put it towards bills? Isn't that what the "cash worth" means? Is there some reason I should hold onto it? It only costs me $45 per year to keep.
 

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I'd probably cash it out - the idea of keeping a small life insurance policy while holding onto credit debt seems silly.<br><br>
I don't know anything about cashing out life insurance policies however. I've heard of using whole life policies as investment vehicles (as well as insurance) but I wouldn't consider doing anything like that while carrying credit card debt.
 

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I agree with mightymoo. It sounds like you have good coverage with term life insurance. The whole life insurance gives you a guaranteed rate of return, but that doesn't even match inflation. In fact, you are losing money with it, so I would suggest that you cash it in and pay down the debt.
 
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