My son, now 19, has a single premium life policy for $100K which was purchased when he was 1 month old, back in 2005. My husband and I are listed as co-primary beneficiaries and his older brother (age 23) is listed as the successor beneficiary.
My (estranged for 10+ years) parents are long-time insurance agents. It was not unusual for them to purchase policies in my kids' names when they were minors at year end to make their production bonuses (yes, they did that). I've chased down most of them and dealt with them but I found a new one this week. I'm waiting on confirmation from the issuer as to who "owns" the policy.
My son is in good health and has no debts. If god forbid he were to pass, we have resources to pay for burial expenses, etc. The cash surrender value on this policy is almost $17K. I'm inclined to cash out the policy and invest it for him instead of carrying a $100K policy for him.
I'm hoping for some feedback - I'm clouded a bit by emotion because of my parents' behavior, so I want to make sure that surrendering it is the right decision and not just one based on spite. Ultimately, my son will have a say but I want to have my facts in order first. Thank you kind redditors for your input.
My (estranged for 10+ years) parents are long-time insurance agents. It was not unusual for them to purchase policies in my kids' names when they were minors at year end to make their production bonuses (yes, they did that). I've chased down most of them and dealt with them but I found a new one this week. I'm waiting on confirmation from the issuer as to who "owns" the policy.
My son is in good health and has no debts. If god forbid he were to pass, we have resources to pay for burial expenses, etc. The cash surrender value on this policy is almost $17K. I'm inclined to cash out the policy and invest it for him instead of carrying a $100K policy for him.
I'm hoping for some feedback - I'm clouded a bit by emotion because of my parents' behavior, so I want to make sure that surrendering it is the right decision and not just one based on spite. Ultimately, my son will have a say but I want to have my facts in order first. Thank you kind redditors for your input.