Whole Life Question

[cooley525]

New to forums... Have a very indepth and involved question that is causing a TON of Strife in my family *Between myself and may parents mostly*

I have had a whole life policy since I was little *29 now* that has a large cash value of roughly $45k. Policy itself is worth $250k. and costs about $800 a year that my dad is currently paying *He takes care of all the Life insurance for the family*

I'm wanting to cancel the policy and instead move it to a 25 year Term Life for $400k. I got approved at roughly $30 a month. This policy will offer my family much more protection if anything should happen to me.

I make roughly 38k a year, the wife makes an additional 4-5k on top of that on a very small side business *but its growing!*

What would you guys suggest that I do? Keep the 250k Policy and forget the other one. or cancel the 250k Policy, get the 400k, and invest that 45k *about 40k after tax* into some things.

One of those things being a new car at 22k, and the rest of it would be put into a Roth IRA that is averaging about 9% over the past 20 years in a good mutual fund.

Which makes better financial sense to do right now?

[youshallliveinoverflow]

I think you need to read the fine print and weigh the pros and cons for the old policy against the proposed new policy to make the best decision. There may be a clause in the new policy that is less favorable than the old since you had that since you were a young child. I would move slowly and dig into the details (The Fine Print). Best of Luck!

[disneysteve]

I have had a whole life policy since I was little *29 now* that has a large cash value of roughly $45k. Policy itself is worth $250k. and costs about $800 a year that my dad is currently paying *He takes care of all the Life insurance for the family*

I'm wanting to cancel the policy and instead move it to a 25 year Term Life for $400k. I got approved at roughly $30 a month. This policy will offer my family much more protection if anything should happen to me.

I make roughly 38k a year

One of those things being a new car at 22k?

1. Whole Life is CRAP. Don't get it ever under any circumstances for any reason whatsoever.

2. Since your dad seems to have drunk the Kool-Aid and bought into the whole life crap, and he is paying for the policy, it isn't costing you anything to keep it.

3. You could withdraw the cash value and let him keep paying for the policy as long as he is okay with that.

4. ABSOLUTELY get term coverage in an amount that meets your insurance needs regardless of what you do with the WL policy. Make sure you have adequate coverage on your wife too.

5. Somebody making 38K/year has no business spending 22K on a vehicle. Forget that idea. Find yourself a nice used dependable car in the 10-15K range.

6. You're 29 and married. It's well past time for your parents to stop being involved in your financial affairs.