I inherited this whole life policy that was paid on for 30 years. Is there some value to it that I’m missing or should I cash it out?
I'm 37, healthy, and have a healthy income, savings, HSA, 401K, and IRAs. No debt except a 2.875% mortgage and a 0.9% APR car payment.
I have a 25-year term policy for $2.5 million that I bought 2 years ago that costs me $1,369/year.
Then there is this Sun Life policy that was purchased on me when I was 7; I've seen it described as whole, permanent, and universal. The premium on it is $45/month ($540/year) and it has a base face amount and/or base coverage death benefit of $125,644, a loan interest rate of 5.65% if I want to borrow against it, and a base policy cash value / net cash value of $22,095.
I became the policy owner on the death of my parent.
From my perspective, I should surrender the policy and invest the cash. My logic is:
$16K in premiums paid and $22K cash value is like 1.X% growth per year. The death benefit is 5% of my term policy but at 40% of the cost.
Is there some value to this I'm not seeing or some reason it makes sense to keep?
submitted by /u/Important-Duck-5905
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