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  1. #1
    Join Date
    Jul 2007
    Posts
    2

    whole life paid up

    My mother has a whole life insurance policy in the amount of 5,000.00 purchased in 1979. She has been paying 20.00 a month since then. Which means that she has paid the company 6,170.00, at this point, for 5,000.00.
    Is it possible to stop paying and keep the policy, can it be raised to reflect what she has paid out? What is the best thing to do in the case? She is 87 now and the family usually lives to the mid 90's........They say the worth of the policy is now only 2,000.00, can this be?
    I need some guidance, please. :confused:

  2. #2
    Join Date
    May 2007
    Posts
    9

    Re: whole life paid up

    A couple of things: One, every month that you have paid in, the insurance company has made a deduction for "mortality risk"-the cost of the life insurance-, as well for administrative expenses, so a portion of that $6100 has gone to pay those expenses, and you would not get those charges back.
    However, enough years have gone by that there would not be a surrender penalty on the policy, so she would get back all of her cash value on the policy. If the cash value is not too high, it might be worth keeping up the payments, but if there is signficant amount in the accumulation account, consider cashing out the policy for it's current value.
    A larger policy could even be sold, but none of the companies that do that sort of thing are going to be interested in a $5000 policy.

  3. #3
    Join Date
    Jun 2007
    Posts
    29

    Re: whole life paid up

    For even more credible answers, take your question to www.insurance-forums.net/forum There are some awesome agents there who can help you.

    Hope that helps..

  4. #4
    Join Date
    Jul 2007
    Posts
    2

    Re: whole life paid up

    Thank you both for your input. My brother and I are beneficiaries. I've told my mother and brother that it makes no sense for her to pay monthly while she's on a fixed income. Told my brother, if he wants to, to continue the payments himself, make him the beneficiary. Otherwise, cash it in and bank it for her in case she needs it or let it gather interest and use it when she passes away.
    I find it hard to believe though that the value told to my brother is only 2,000.00 at this time. Oh well........I'll check out that site you mentioned.
    Last edited by phantom32; 07-17-2007 at 08:55 PM. Reason: typos

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