Life Insurance

I own a small business, so I really thought it was important that I have Life Insurance in case something happened to me. I didn't want my 75 year old father stuck trying to unwind everything from 3,000 miles away (he lives in NY state). So, I took out a $250k policy several years ago.


First of all, most Life Insurance policies have a cash value. So, I took a loan off of mine. I only got $3,114 but that felt like the world at the time! Your policy is then reduced by that amount. And they "request" that you pay it back, but you don't need to.  But I needed the money so it was a good option! If you have a Life Insurance policy and are as desperate as I am, you can consider taking out a loan off of it. Ask your insurance person about it for details.


Well, I had planned to repay it and keep the policy, but I heard a financial article on NPR and the gal suggested that the ONLY reason to have a Life Insurance policy that you pay for, is having a small business, or are single and have very young children. She had a whole argument about why you wouldn't need it otherwise and it sounded VERY reasonable. And a woman who had called in about it had been paying on her life insurance policy for YEARS and YEARS and it had VERY little cash value. I was stunned!


I still have my business, so I'm not going to cancel the policy yet, but when the business closes, I WILL CANCEL IMMEDIATELY!!


I HATE making the payment these days! If I could cancel my policy, I would! I would save $1,690 per year! I COULD SURE USE IT TOO!


But, if you have a Life Insurance policy that you are paying on, you might consider cancelling it. Get any cash value out and move on! If your employer is paying for it, then the gal said to keep it, and WHY NOT?! If they want to pay for it, SURE!



DISCLAIMER! DISCLAIMER! DISCLAIMER! Before doing anything, consult a professional! I'm not a licensed insurance agent and this is not insurance advice!