Universal Life Insurance a Mistake?
Q: I had a universal life policy on my husband for many years I borrowed money over the years and was not aware of all the interest that had accumulated on this. Anyway, They just told me mine is about to lapse on my husband because I owe $5,806.98 and the payoff is $5,855.58. Would I be better off just cancelling this universal life. It is for $20,000. and start over or start to pay the interest due?
A: The first question is whether having the insurance is important to you. What you will likely find is that the amount you have to continue to pay in will increase each year.
How old are you and your husband? Are you both in good health?
Your posted comments on this and other questions are welcome.
If you have a question for Jeff an answer is just a click away.
Find a wealth of information at Jeff's website.
posted by Jeffrey D. Voudrie @ 3:40 PM
2 comments
2 Comments:
Yes, it is important. I am 51 and my husband is 62. I read your article and I thought maybe I had made a mistake by buying Universal life insurance. The interest this year was $361.00. I was ignorant and didn’t pay back a loan I had made with them. I think it is $50.00 away from being terminated because the loan has increased to the $5,000 or so limit. I didn’t know if I would be better off starting a new term policy of some sort.
Term life insurance will work if you only expect to need the coverage for another 20 years or so. If you need the coverage to age 85-100 then you need something like Universal Life. My concern is that since you have been pulling all the money out in loans that it will be difficult for you to pay the interest plus the ongoing premiums.
Post a Comment
<< Home