My father currently has a life insurance policy with a cash value of $64,000 and a face value of $200,000. He wants an 'advance' of $1,000 a month and the premium of $100 a month to be paid for it as well. The gist is that whoever pays for the premium gets a share of it. The average return per year is 2.80% (Horrible, I know, might as well buy CDs).
In addition to the life insurance policy, we also get his 'share' of a house that the family had bought and it's valued at around $150,000 of $600,000 although he will be living with us so it's a moot point because we get it anyway if he passes.
This is the breakdown of my bills per month
-
Car insurance $100
-
Gas $60
-
Food $50
-
My share of house bills $205.75
-
Life Insurance $550 (Split between my brother and I since nobody else in the family wanted in).
-
Total $965.75
Currently I make around $800 a month with a part time job but I can look for a new one or get a second one while going to school. My brother and I figured out that before 5 years it would be very worth it, and the value tapers down until 15 years where we actually pay more money than the current face value is worth. What should I do? Is my money better off being put into another kind of investment? Roth IRA? Stocks? Something?
EDIT : The life policy is up to age of 95 and then the premium is waived. He is currently 55, birth date 1964.
EDIT2: I forgot to mention he has had a liver transplant but he’s completely fine. I’m going to meet with my brother so I’ll respond in an hour or two.
Submitted September 18, 2019 at 07:36PM by ForestFury https://ift.tt/30aDCvJ
