Life insurance policy — cash it in??
My husband is 81 years old. We have a savings account and an IRA not a Roth, with around $200,000. We have a Home that is paid for. We have no other substantial debts. My husband wants to purchase a new car and he wants to cash in his life insurance policy to purchase this car. I think he should look for a used car that cost less and has lower miles and not cash in his life insurance policy. My question is what do you think about him cashing in his life insurance policy for a new car.
Terry Says
Cashing in his life insurance policy won’t hurt HIM — I’m assuming that YOU are the beneficiary — SO it will really hurt YOU if he dies, and there is no life insurance!
Make a deal with him. Tell him that if you die first, he can cash in the policy and go to Vegas and spend all the money.
But until then, the life insurance policy stays in force — and he should buy the used car, or even lease one.
