Surrendering whole life policy on graduating college senior

The wife and I did insurance back in 2007 and got whole life policies for the kids ($50k each) and term policies ($500k for me, $400k for her – both are Term 80 so they're good until we reach that age which is 30+ years off).

With my daughter getting ready to finish school, she has a job lined up but she has some student loans. I'm thinking about surrendering the whole life policy on her and giving her the money to help build her savings, start investing, or pay off some loans. She'll be living with us for ~6 months and holding/budgeting what she thinks her longer term rent will be.

Policy date – 2007 Whole Life – $50k basic insurance amount Total (Current) Death Benefit – $68k Annualized premium – $410 Net Accumulated Value – $5700 Taxable Gain if Surrendered – $336

I'm thinking the go-forward plan is that she (or we) get some term life for her and get her the cash infusion as she journeys into adulthood.

Since I've never done anything like this before, looking for pros/cons. It feels like we can replace the coverage relatively easily, right?

submitted by /u/Call_me_WABB
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