Reposting here from r/personalfinance:
Family friend sold to me when I was 21 and I've been paying $100/month for about the last 7 years now. After reading up on it a little more, it seems like it makes sense to surrender the policy and invest more into a 401K/IRA since I'm single with no kids...
The only reason I'm hesitant is the $2,700 surrender charge...is it worth keeping until I can withdraw the full cash value? Or cut my loses and say "lesson learned"?
Death benefit: $150,000
Cash Value: $6,238.12
Surrender Value: $3,538.12
Total Premiums Issue to Date: $8,828.76
Monthly Guaranteed No Lapse Premium: $50.12
Edit: Currently a grad student so no employer matched 401k but I do have a Roth IRA that I try to contribute the max amount to each year.
Updates as of 2/2/24:
surrender charge expires at 15 years
cost of insurance is $35.75 with excess going towards index
Minimum no lapse premium: $50.12
here's some info from the inforce illustration, definitely leaning towards closing the policy...
https://preview.redd.it/yo33snuh59g...bp&s=bff28a300fbdc630300aa764fcd34fe4244e1346
https://preview.redd.it/zyg2vsuh59g...bp&s=46001930e6e4ee71c429256259b5c9be6a0e13ee
https://preview.redd.it/zqlg70vh59g...bp&s=93b75d3353346d86af6ece1ce652ecbaa31f1451
Family friend sold to me when I was 21 and I've been paying $100/month for about the last 7 years now. After reading up on it a little more, it seems like it makes sense to surrender the policy and invest more into a 401K/IRA since I'm single with no kids...
The only reason I'm hesitant is the $2,700 surrender charge...is it worth keeping until I can withdraw the full cash value? Or cut my loses and say "lesson learned"?
Death benefit: $150,000
Cash Value: $6,238.12
Surrender Value: $3,538.12
Total Premiums Issue to Date: $8,828.76
Monthly Guaranteed No Lapse Premium: $50.12
Edit: Currently a grad student so no employer matched 401k but I do have a Roth IRA that I try to contribute the max amount to each year.
Updates as of 2/2/24:
surrender charge expires at 15 years
cost of insurance is $35.75 with excess going towards index
Minimum no lapse premium: $50.12
here's some info from the inforce illustration, definitely leaning towards closing the policy...
https://preview.redd.it/yo33snuh59g...bp&s=bff28a300fbdc630300aa764fcd34fe4244e1346
https://preview.redd.it/zyg2vsuh59g...bp&s=46001930e6e4ee71c429256259b5c9be6a0e13ee
https://preview.redd.it/zqlg70vh59g...bp&s=93b75d3353346d86af6ece1ce652ecbaa31f1451