Q. I bought a whole-life insurance policy when my kids were young and now has a sizable cash value in the whole life policy. What's the best way to use the cash value insurance policy as I am getting older?
A. A cash value life insurance policy is like a "Swiss army knife", it can be used in many different ways, especially if your loved ones don't need the death benefit from your cash value policy.
You have 3 major options to consider, and within each of the 3 major options, you also have many choices to select from:
Option 1. Tap the Cash Value of the Policy
Option 2. Exchange the Cash Value Policy
Option 3. Sell the Cash Value Policy
In our next blog post, we will discuss the various choices under option 1 - Tap the cash value of your policy.
A. A cash value life insurance policy is like a "Swiss army knife", it can be used in many different ways, especially if your loved ones don't need the death benefit from your cash value policy.
You have 3 major options to consider, and within each of the 3 major options, you also have many choices to select from:
Option 1. Tap the Cash Value of the Policy
- Stop paying the premiums
- Take partial withdrawals
- Take policy loans
- Cash the entire policy
Option 2. Exchange the Cash Value Policy
- Convert into an income annuity
- Exchange to a long term care insurance policy
- Exchange to an insurance policy with long term care coverage
- Exchange to an insurance policy with long term care rider
Option 3. Sell the Cash Value Policy
- Sell your cash value policy to an investor
- Contract a life-settlement company directly to sell your policy
In our next blog post, we will discuss the various choices under option 1 - Tap the cash value of your policy.
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