Life insurance withdrawal?
For the past few years, I have been getting my health insurance via the Marketplace at reduced rates. This will change in 2027 when I no longer qualify for the subsidies. I will begin Medicare later in 2027, but until then the insurance premiums for medical insurance will be very high. I have a whole life insurance policy that I have been paying into for 40+ years. Would it make sense to draw some of that money out of that policy to pay for my health insurance premiums for about eight months until Medicare kicks in? Would it also be a good idea to prepay my funeral expenses using some money from my life insurance?
Terry Says
Wait — you forgot to tell me the most important thing: Who is the beneficiary of that life insurance policy –and does the beneficiary still “need” the money, because they are dependent on your support??
That’s the key reason for life insurance. And if it’s not needed, you can withdraw money. But make sure this is not a taxable event.
It’s a shame that removal of the subsidies caused so much pain for so many people. Fortunately for you it will only be a few months. Can’t you find the money somewhere else? Have you looked at “short-term” health insurance? Check at ehealthinurance.com.
