Whether to continue Universal Life policy
I've had a $28k universal life policy for 30 years. For the past couple years I've had to pay up to $500/year to continue coverage. There's no cash value and policy matures in 2051. I'm 66, retired, no debt, with pension, stock portfolio and 457 plan. My wife is still working and I'm hoping to postpone social security and 457 payments until age 70. In short, I'm not sure I can justify continuing this modest policy. Wouldn't seem reasonable to just let it lapse? Thank you.
Terry Says
This is always a tough question -- partly because we all feel "inertia" -- having paid in for so long, there's a desire to get something out of it! But this is a costly policy, (paying $6,000 a year for a potential $28,000 payout) and you could put that same money toward an investment that will grow in value. The real question is how your beneficiary will survive without the payout from this policy. If it won't make a life-changing difference, then you can give it up. But to take a line from Clint Eastwood: "Do you feel lucky?"
