tkaish t1_jaeg4eg wrote on February 28, 2023 at 9:09 PM

Reply to comment by BoxingRaptor in I'm half way paid up on a Statefarm 10 pay life insurance policy. Not really sure what I got myself into, did I make a mistake? by [deleted]

I have a whole life policy that my parents got when I was a baby, so I don’t pay anything on it - it pays its own monthly premiums. Should I still cancel it? It’s not a huge amount of money, I think it’s 30k insurance and cash value around 3.5k right now (and again I am not putting any of my money into it and never have.)

BoxingRaptor t1_jaeisql wrote on February 28, 2023 at 9:26 PM

If it's already paid up in full, you could keep it or you could not. $30k isn't a whole lot as far as life insurance policies go, but it will at least allow your dependents to pay for funeral costs and maybe some months of bills if you die. On the other hand, if you DID cash it out, and put that $3,500 into an index fund and let it ride for a few decades, you MIGHT come out over that $30k. Really up to you.