Cashing in Life insurance, pros and cons?
I live in Missouri and I am considering whether to cash in a universal life policy with a surrender value of about $24,000 and using the money to buy a house.
I have had the policy for more than 20 years, since my eldest was born. All my children are grown now, and I'm divorced, so I have no dependents to protect. And I have insurance through my employer.
Does it make more sense to get rid of the cost of the insurance and put the money to work, or are there better options, such as borrowing against the policy, or against my 401k at work. The policy does pay about 5 percent, tax deferred, which doesn't seem too bad a guaranteed return in this day and age.
I rent now and really need to get into something that will begin to accumulate some equity.
I live in Missouri and I am considering whether to cash in a universal life policy with a surrender value of about $24,000 and using the money to buy a house.
I have had the policy for more than 20 years, since my eldest was born. All my children are grown now, and I'm divorced, so I have no dependents to protect. And I have insurance through my employer.
Does it make more sense to get rid of the cost of the insurance and put the money to work, or are there better options, such as borrowing against the policy, or against my 401k at work. The policy does pay about 5 percent, tax deferred, which doesn't seem too bad a guaranteed return in this day and age.
I rent now and really need to get into something that will begin to accumulate some equity.
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