Parents started a whole life policy for me after I was born and have recently given it to me to do with what I please. I am in my late 20s and already have good life insurance through my employer, so I'd like to cash the whole policy out to pay off some high interest debt.
I received a statement in the mail that I have a 12-month premium of ~$200 due in a couple weeks. It also gives the following info:
- net death benefit ~ $20K
- ~$100 dividend will be credited on the due date of the premium
- ~on due date, the Guaranteed Cash Value will be ~$800 and the Net Cash Value will be ~$3K.
Questions:
- What is the difference between the net and guaranteed cash values?
- If I surrender the policy, do I get the $3K?
- What is the best way to go about doing this, considering the timing of the premium payment and dividend?
Any additional financial advice regarding my situation is welcome. Thank you!
Submitted June 27, 2018 at 08:57AM by nomleD https://ift.tt/2Mr04Fz
