Submitted by goodfight10 t3_10rrcre in personalfinance
My wife was given a whole life insurance policy from her dad. He opened it when she was 15 and she is now 31.
I know whole life insurance is a bad investment, a lot of talk of it being a scam and good for the broker who sold it.
Normally I would think to cash it out and put it in a better vehicle however, FIL is saying it would be “stupid” to cash this out. I just want to run this by someone else.
Basic policy: 100,000
Fully Paid Additional insurance: 50,531
Settlement dividend: 21
Total insurance coverage: 150,552
Cash Value Summary:
Basic policy: 6,340
Fully paid additional insurance: 7,675.23
Total cash value: 14,036.23
The yearly premium is 547 but he has been paying an extra 300 on top of that for an “additional life insurance rider”. So, now that this was given to us, we owe 847 this month for the year of 2023
I currently have 25 year term insurance at 1 million
My wife has the same.
I have an additional 800k of life insurance through my employer.
I am maxing out my 401k and my Roth IRA as well as my wife’s.
Contributing 250 a month into each of our kids 529. (500/month)
Any advice? It seems that, assuming he’s paid 847 per year for 16 years, he has put in 13,552 and it only has increased 500 dollars in that time frame?
I know sometimes that if a whole life was opened a long time ago that it COULD have good returns, but not familiar with whole life. How do I decide if it is worth to keep?
TIA.