Unmarried with no dependents tilts heavily toward no need for life insurance. One exception is if you have a health condition that would prevent you from getting insurance later and you foresee in the near term your marriage and dependent situation changing.Hi,
Need some reassurance that I'm making the right choice and I'm hoping this is the right place. I know IUL questions have been done to death, but I'm hoping for some specific thoughts on my situation.
I am 99% sure that the smart move would be to cancel my indexed universal life insurance policy and put the money somewhere else. Yet, even after all the threads I've read on this site or videos pointing out the amount of money I'm spending on the insurance fees, there is still a teeny, tiny fraction of doubt on whether or not I, specifically, should finally pull the trigger. Additionally, if and when I do, are there things I can do to come out unscathed?
I know I've done goofed pretty bad, Image may be NSFW.
Clik here to view.but I'm working on righting the ship. So any advice and tips, including good ideas for where to put the cashed out surrender value, are deeply appreciated!!
Main questions in my head:
- Having already reached the 10 year mark, does this plan start to make sense as a investment vehicle? Am I anywhere close to reaching where the paid interest will be able to fund the insurance costs and thus, lend to stronger growth?
- Looking at my account, it seems like I've cleared the surrender period, but will I be taxed if I cancel and pull out? And how many arms and legs should I expect to be taxed?
- Do I need to set up a term life insurance policy before canceling this one? My antsy side wants to cancel ASAP.
- Do I even need a life insurance policy? (this is more for me, but saying this out loud anyway!)
Here are some Basic Facts about my situation and the policy.
Me:
- 36 yo
- Unmarried
- No dependents
- 70k salary (recently got to this level)
- On target to max roth
- Embarrassed
Policy Facts
- Carrier: NationallifeGroup LSW Flexlife
- $ 207,939.49 death benefit
- Start date: 01/08/2014
- Total Value : $7,939.49
- Surrender Value: $7,939.49
- Total Premium Paid $12,300.00
[Topic title clarified by moderator ClaycordJCA.]
You won't owe taxes. After 10 years and $12,300 paid in, you've lost $4,400.
You can ask for an illustration of the policy to see how they think it will perform.
Note that the insurance cost increases every year. It's basically a one year term policy that you renew every year.
Statistics: Posted by exodusNH — Wed Mar 13, 2024 12:21 am