Newspaper article The Topeka Capital-Journal

Increased Premium Calls Policy's Worth into Question

Newspaper article The Topeka Capital-Journal

Increased Premium Calls Policy's Worth into Question

Article excerpt

Dear Bruce: We bought a $100,000 universal life insurance policy on my husband back in 1989. The monthly premium was $60. In 2013, the premium increased to $250 per month.

Our financial situation is better now than it was back then, but the cash value of the policy is only $10,000 if we cash out now. We are debating if we should continue paying the premium. It doesn't seem to be worth it to cash out since we've paid in approximately $24,000, but $250 per month is a lot each month. Both my husband and myself are around 60 years old. -- C.C.

Dear C.C.: First of all, you have to determine how much the $100,000 life insurance is worth to you in the event that your husband passes away. If it is not a significant number, then I agree that paying 3 percent of the $100,000 in your early 60s is a substantial premium cost. …

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