How does 20 Pay Life Really Work?

Hi 👋 12 years ago – Nov 2013 – I bought a 20 Pay Life insurance policy for my daughter who was 13 at the time. The policy is for 50k. Why is it worth so little after 12 years? Shouldn’t it be worth closer to 8k? Should I just cash it out at this point?

Here is the verbiage in my policy, can someone break this down for me?

PAYMENT DUE INFORMATION – State Farm Payment Plan. Your one-month premium is $58.91. Your annualized premium is $706.92. This billing does not waive any prior notice of life insurance lapse. You elected to leave dividends with the Company DIVIDEND INFORMATION – to accumulate at interest. Your total dividend accumulation is $940.39. This includes interest (at a 3.3% rate) of $26.04, less federal withholding of $6.25, and your current dividend of $131.50. Any accumulated dividends will be added to the insurance proceeds your beneficiary will receive or included in the amount paid if you terminate your policy. CASH VALUE INFORMATION – $516.50 from last year. Your cash value is $3,823.50–an increase of As of November 25, 2024, the cash surrender value will be $4,955.07.

submitted by /u/Realistic_Ad4621
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