Should I surrender one of my policies?

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Posted: Fri Sep 25, 2009 10:01 pm Post subject: Should I surrender one of my policies?

I currently have two life insurance policies. I am age 30. One was opened for me by my mother when I was only 1 years old. It is called a Limited Pay Whole Life policy where I am only paying $9/month. Total Death Benefit is about $26K. Cash value is at $5,600. When I was 23, I opened a equity index lifefund (annuity). I'm currently paying $50/month. Death benefit is about $108K. Cash value is $740. It is invested in the S&P and Nasdaq funds where I'm accumulating credits totaling about $4500 so far. Anyway, I'm wondering if it's worth paying for two policies and if you'd recommend that I cancel one over the other (or both). My thought is to surrender the one that was opened for me when I was 1 since the death benefit is only 25K (although the monthly premium is lower). I do not have any dependents. I do need cash for a home purchase. Appreciate any advice you can give me.Thanks!

jinx808

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Joined: 25 Sep 2009
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Posted: Fri Sep 25, 2009 11:48 pm Post subject:

It's probably pretty stupid to cancel the policy that your mother opened for you. You don't understand your second policy. No decision can be made until you understand it. Additionally, you should probably be buying a policy with a much bigger death benefit than you have. Without knowing anything about you, I would lay odds that you are underinsured as it pertains to disability.

InsuranceExpert

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Posted: Thu Oct 01, 2009 5:07 pm Post subject:

You may like to refer to the insurance contract if you need to continue paying premum for your first policy since it is a Limited Pay Whole Life Policy. "Limited Pay" could mean that you are required to make premium payment for x number of years or up to certain age. _________________ I am an insuranc sales coach for almost 2 decades. I have a collection of insurance agents' sales stories. To know more, you can visit http://www.stories-connect.com or http://xoseph.wordpress.com

Xoseph

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