BoxingRaptor t1_jadnprv wrote on February 28, 2023 at 6:08 PM

I would cash it out and be done with it. You basically have Whole Life, and here is why it is bad for the vast majority of people: https://www.whitecoatinvestor.com/debunking-the-myths-of-whole-life-insurance/

krustymeathead t1_jadvujt wrote on February 28, 2023 at 6:59 PM

I also find this PBS video to be informative regarding [whole life] vs [term life + investing yourself]. I agree with what everyone says here. Cash it out now. You've got sunk costs but don't let that stop you from getting out.

DTS_Sanchez t1_jae365w wrote on February 28, 2023 at 7:46 PM

I appreciate it! I had a feeling I was caught in a trap, but ill cut my looses and be done with it at this point!

StarryC t1_jaf4rck wrote on February 28, 2023 at 11:57 PM

And, $2,500 isn't the worst cost if you can cash it out now! It is more than you would have paid in Term Life, and you didn't need life insurance at all. But, I wish every financial mistake I made between 25 and 30 only cost me $2,500!

DTS_Sanchez t1_jae30s3 wrote on February 28, 2023 at 7:45 PM

Thank you!

tkaish t1_jaeg4eg wrote on February 28, 2023 at 9:09 PM

I have a whole life policy that my parents got when I was a baby, so I don’t pay anything on it - it pays its own monthly premiums. Should I still cancel it? It’s not a huge amount of money, I think it’s 30k insurance and cash value around 3.5k right now (and again I am not putting any of my money into it and never have.)

BoxingRaptor t1_jaeisql wrote on February 28, 2023 at 9:26 PM

If it's already paid up in full, you could keep it or you could not. $30k isn't a whole lot as far as life insurance policies go, but it will at least allow your dependents to pay for funeral costs and maybe some months of bills if you die. On the other hand, if you DID cash it out, and put that $3,500 into an index fund and let it ride for a few decades, you MIGHT come out over that $30k. Really up to you.