tuk123
May 12th, 2008, 10:34 PM
Folks,
A few years back I bought a variable life insurance policy with Transamerica to take advantage of the tax benefit. I now realize what a bad mistake it was. To date there are around $6000 in cash values. The death benefit option is face amount + policy value. I like your input on what I should do. I am not going to fund this policy any further. I had already stopped paying premium on the policy and the monthly premium are currently being withdrawn from the sub account. Unfortunately, the surrender value is higher than the cash value as I haven't had it for that long, so collapsing the policy outright seems like a waste. Here are some of the options I can think of:
1. Change the death benefit option to face amount only(Option A I believe)
2. Reduce the face amount
3. ??
What I like to do is to either reduce the monthly premium to such a level that I can one day collapse the policy and still receive the cash remainder(Is this even possible?), or stretch the policy to self sustain itself until I no longer need life insurance. Can I convert my policy to term insurance?
At this moment, I am going to write off this whole thing as one expensive lesson. However it will be great if some of you can bounce some good ideas around on how I can make best of the situation. Any input is greatly appreciated!! Thanks.
A few years back I bought a variable life insurance policy with Transamerica to take advantage of the tax benefit. I now realize what a bad mistake it was. To date there are around $6000 in cash values. The death benefit option is face amount + policy value. I like your input on what I should do. I am not going to fund this policy any further. I had already stopped paying premium on the policy and the monthly premium are currently being withdrawn from the sub account. Unfortunately, the surrender value is higher than the cash value as I haven't had it for that long, so collapsing the policy outright seems like a waste. Here are some of the options I can think of:
1. Change the death benefit option to face amount only(Option A I believe)
2. Reduce the face amount
3. ??
What I like to do is to either reduce the monthly premium to such a level that I can one day collapse the policy and still receive the cash remainder(Is this even possible?), or stretch the policy to self sustain itself until I no longer need life insurance. Can I convert my policy to term insurance?
At this moment, I am going to write off this whole thing as one expensive lesson. However it will be great if some of you can bounce some good ideas around on how I can make best of the situation. Any input is greatly appreciated!! Thanks.