- 11,305
$104 a year for 20 years = $2,080
Cash values are ~$2,500 AND you have a death benefit, probably around $20,000 (just a guess).
Sounds like a decent "investment" now, right?
Gerber Life Insurance - Teen now 21 now what?
- Thread starter Amy Jones
- Start date
$104 a year for 20 years = $2,080
Cash values are ~$2,500 AND you have a death benefit, probably around $20,000 (just a guess).
Sounds like a decent "investment" now, right?
- 29,535
That little fact changes things just a little bit.
- 5,814
eersfan
Super Genius
- 200
Just a tad.That little fact changes things just a little bit.
- Thread starter
- #15
- 29,535
Keep it.
- 11,305
Options:
1) Keep paying on it and keep the $30,000 in death benefits. Will she have student loans? If she passes away and has private student loans, YOU could be liable.
Lenders Refuse to Forgive Dead Woman's $200K Student Loan Debt
2) You can "cash it out" and enjoy the $2,500 and lose the $30,000. (Think about it: You're losing an additional $27,500 of future family wealth if the policy is cashed out.)
3) Stop payments on the policy and let it either erode the cash values OR do a "reduced paid up" option so the policy is always "paid up". It'll probably lower to something like $5k - 7k.
4) You can do a 1035 exchange of the cash values into a new policy. It might not make sense to do that, but you can do it.
With the monthly premium being the same as eating lunch out once a month at Chipotle, I'd probably just keep it as it is. Even if it wasn't building cash values, $10/month to secure $30,000... is a no brainer - at least to me.
1) Keep paying on it and keep the $30,000 in death benefits. Will she have student loans? If she passes away and has private student loans, YOU could be liable.
Lenders Refuse to Forgive Dead Woman's $200K Student Loan Debt
2) You can "cash it out" and enjoy the $2,500 and lose the $30,000. (Think about it: You're losing an additional $27,500 of future family wealth if the policy is cashed out.)
3) Stop payments on the policy and let it either erode the cash values OR do a "reduced paid up" option so the policy is always "paid up". It'll probably lower to something like $5k - 7k.
4) You can do a 1035 exchange of the cash values into a new policy. It might not make sense to do that, but you can do it.
With the monthly premium being the same as eating lunch out once a month at Chipotle, I'd probably just keep it as it is. Even if it wasn't building cash values, $10/month to secure $30,000... is a no brainer - at least to me.
- 6,500
(not an agent, just a consumer)
the gerber website talks about grow-up policies that double in value. Is this one of those, and if so, is 30K the doubled amount or the original face amount?
What does the policy say about paid up additions and additional cash values?
the gerber website talks about grow-up policies that double in value. Is this one of those, and if so, is 30K the doubled amount or the original face amount?
What does the policy say about paid up additions and additional cash values?
- 6,500
I personally think that is not the only thing to consider. I find that I have some resources available to me now, because of life insurance, that I did not acquire in other ways.
The premium represents a "bargain", it represents a way to save, and it accumulates a resource that may be of use a long time from now, addressing some need that is totally unanticipatable when current circumstances are viewed. Just opinions from "looking back down the road".
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