My parents signed my brothers and I up for MetLife whole life insurance roughly about 19 years ago, they were paying for the premium until about 10 years ago. My bros and I have been paying the premium ever since. At first we were told by the insurance agent that we wouldn’t need to make anymore payments after 15 years, but it’s close to 20 years now.
The face amount of insurance is $250k, and the current death benefit is about $350k ($50k coming from equity additions + another $50k from cash value). Here are some more stats: my annual premium is about $1,750. the total cash surrender value is about $50k, and the dividend is about $600/yr. After quick calculation, I’ve paid $33,250 worth of premium, so in a way I’ve made about $16,750 ($50k surrender value – $33,250 premium).
The three options that I’m considering right now are:
– continue paying premium as usual.
– stop making payments and ask for the cash surrender value.
– use dividend to cover part of my premium.
A little bit of background on myself, I’m in my mid 30’s, married, with a one year old, and another due in Nov. Can anyone provide me some insights on why I should or shouldn’t continue with my insurance? Also, what is equity additions and what can I do with that amount, can I use it to pay for my insurance premium? Thanks for reading.