Life Insurance Saves the Day!
Posted by InsuranceRP on 02/12/09 in Health
I was listening to the Clark Howard Show on CNN the other day, and someone called in to ask if, now that she was retired, it was time to cash in her life insurance. He said something like that 15 years was the magic number, and that she shouldn’t cash it in because it was actually better to keep it at this point.
I haven’t looked into this myself, but I do think that a policy you’ve kept that long can somehow be used for a loan, right? Especially in this economy when no one will loan you any thing for any amount, borrowing against a long-existing life insurance policy might be your only out. I found out this doesn’t work for term insurance, though. On the other hand, having term insurance means you have a lot less guilt once those kids are grown and you decide that you really can’t afford it any more. But there are so many different types of life insurance out there nowadays, you really have to look into all the in’s and out’s-it’s still a very beneficial purchase! Especially now that you can pretty much tailor your purchase to your specific needs.
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Joshua Gettinger | Mar 3, 2009 | Reply
That’s pretty interesting. I’ve never heard of this “15 year” rule. I was thinking about cashing in my own life insurance policy, but I might have to rethink that now.
Jay | Mar 7, 2009 | Reply
Clark Howard has a show on CNN? I’m addicted to CNN and I’ve never seen him on there. Are you sure it’s not CNN Headline News? Nancy Grace can’t be on [i]all[/i] the time.
Grayson | Mar 9, 2009 | Reply
I’ve kept it pretty simple with my term insurance plan. I didn’t know you could actually cash out whenever you wanted to, though. I’ll have to look into this more.
Milo | Mar 13, 2009 | Reply
I’ll have to discuss this with my better half. I think we both have life insurance, but it might just be term insurance. Still, it seems very somber to turn your health into a loan.
Josef | Mar 15, 2009 | Reply
I always think it’s awfully convenient that the so-called “callers” to these shows know just the right questions to get those long, almost scripted answers. The fact that I never see any phone numbers on screen to call in doesn’t help either.