inandoutoflove23
New member
Variable Adjustable Life Policy
Need some advice. I (54M) have a Variable Adjustable Life Policy for $250k. I've had the Policy for 23 years. Currently my monthly premium is $75 ($900 yearly). Insurance cost is $25.00 monthly, but the Policy carries a sales load fee of $5.25, admin fee of $5.00, a premium tax of $1.88, and a Face Amount Guarantee Charge of $1.13. ($13.26 in monthly fees). The remainder $36.74 is invested into 3 different funds (SFT S&P 500 (40%), SFT Growth Fund(30%), and Janus VIT (30%). Cash/Surrender Value of $39k, taxable portion is $18k. If I die, my Policy only pays $250k and they keep Cash Value.
I got this Policy when I was $31 and my wife talked me into it. I also have a Term Life Policy of $500k that expires when I turn 70 yrs old. I hate all the fees I've paid currently and in the past, but at $38.26 a month is half the price of my term life policy. So not a terrible deal now.
I currently don't have a need for the $250k Policy. No mortgage, 2 kids in college on scholarships and 529s. No debt.
Should I take the cash value out and pay taxes and invest the $75.00 monthly or should I keep the policy intact and continue paying monthly premium of $75.00? With 5% yearly growth the VAL Policy will expire at 90 yrs. old. I could change it to a cash protection policy that expires at 84 yrs old, but if I die anytime before that the cash value gets paid out on top of the $250k.(Peaks about 70 yrs old at $310k and decreases from there.)
Need some advice. I (54M) have a Variable Adjustable Life Policy for $250k. I've had the Policy for 23 years. Currently my monthly premium is $75 ($900 yearly). Insurance cost is $25.00 monthly, but the Policy carries a sales load fee of $5.25, admin fee of $5.00, a premium tax of $1.88, and a Face Amount Guarantee Charge of $1.13. ($13.26 in monthly fees). The remainder $36.74 is invested into 3 different funds (SFT S&P 500 (40%), SFT Growth Fund(30%), and Janus VIT (30%). Cash/Surrender Value of $39k, taxable portion is $18k. If I die, my Policy only pays $250k and they keep Cash Value.
I got this Policy when I was $31 and my wife talked me into it. I also have a Term Life Policy of $500k that expires when I turn 70 yrs old. I hate all the fees I've paid currently and in the past, but at $38.26 a month is half the price of my term life policy. So not a terrible deal now.
I currently don't have a need for the $250k Policy. No mortgage, 2 kids in college on scholarships and 529s. No debt.
Should I take the cash value out and pay taxes and invest the $75.00 monthly or should I keep the policy intact and continue paying monthly premium of $75.00? With 5% yearly growth the VAL Policy will expire at 90 yrs. old. I could change it to a cash protection policy that expires at 84 yrs old, but if I die anytime before that the cash value gets paid out on top of the $250k.(Peaks about 70 yrs old at $310k and decreases from there.)