Background: I'm a 1st Lt. My father purchased a $50,000 Whole Life policy through FC when I was a child, and recently transferred it to me to do with as I please. It's been getting $19 a month for the last ~20 years. I've met with FC on what my options are, and it seems to me I have several options and am looking to hear the opinions of non-insurance salesmen:
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Cash out the current Cash Value (~$3100). Could use this for anything, jump-starting other savings or a Roth. The advisor also mentioned transferring it to an Indexed Universal Fund, but I don't think I need additional life insurance given SGLI (although he seems to think so obviously).
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Reduced Paid Up. Estimate on the policy's death benefit currently then would be ~$26,000. Not sure what the advantages of this would be.
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Just keep paying the $19 a month. Future OPAI's are still an option, but not convinced I need those.
Thankful for any feedback and advice.
What to do with Whole Life policy with First Command?
byu/leadshotphillylepers inMilitaryFinance
Posted by leadshotphillylepers
2 Comments
That’s quite the paltry sum. Just cash out and open a Roth IRA if you don’t have one.
Cancel/cash it out. And move anything else you have away from FC.