Is it worthwhile to keep our Group Universal Life Insurance policy?
We are carrying a Group Universal Life Insurance policy from my husband’s former employer (he left there more than 30 years ago) for $152,000. He is 67 and I am 63. We are both still working and have life insurance through our employers. We have retirement funds with a wealth management firm that is just under $1 million at the moment. Our mortgage is around $230,000 on a home that we have lived in for 40 years and is now worth $500-600,000 (maybe more depending on the market.) The premiums for the insurance have gone up dramatically to $764 per quarter. Seems like a lot for such a small amount of insurance. We need help deciding whether to keep it or not. Our wealth manager suggests we cancel it. Just wanting another opinion. That premium could possibly be used to put into our savings, pay down mortgage, etc. Any advice would be welcome. Thank you!
Terry Says
It sounds like this is a pretty inefficient use of your money. I’m with your wealth manager. But do ask if you will receive a 1099 if you cash in the policy. That might be a consideration.
