I Need Some Quick Money For Our First Home… What Will I Get For My Life Insurance Policy?
Posted February 21, 2010 – 4:27 pm in: structured settlements FAQMy dad bought my life insurance policy for $10,000 back in 1986. Ever since I turned 18, he said if I wanted to keep it I had to take over the yearly payment. I am 26 now and going to purchase my first home in about 6 months. I was wondering what my cash value would be… last August it said my total on my insurance was $16,000+. How much would it come to if I actually cashed it out?
Tags: First, Home, Insurance, Life, Money, Need, Quick, Some, What, Will
4 Comments
Probably less than $500.
The death benefit is much greater than the cash value.
Sounds like your Dad got you a whole life policy. I would suggest that you contact your agent to get the correct amount of cash value. There are generally surrender charges involved as well as possible tax consequences.
Good luck.
The policy has a cash value table in it (assuming you’re talking about a whole life policy). It won’t be worth much.
On CNN the other morning I saw something on the Clark Howard segment about people reselling their life insurance policies to third-party companies. He mentioned that there are companies that buy them, but the example he gave was a $100,000 life insurance policy selling for around $20,000. If that formula (selling for 20% of face value) can be applied to your example (not sure that it can), then I’m guessing your $16,000 policy might resell to a third party for a little over $3,000.