Cashing out of Life Insurance

[cbloom]

I have this life insurance policy that my grandparents bought for me when I was born. I don't really have any reason to have life insurance (no wife/kids, etc) and think it's basically a scam, so I was thinking of cashing out of it and taking the money. It currently pays around $30k if I die and the cash value is around $7k.

Is there any thing I'm not aware of why cashing out would be a bad idea?

[d0nkaments]

I hate insurances..

[sebbb]

wait, so does that mean I could cash out something from the life insurance my company is paying for me?

[vilemerchant]

Sounds like dying would be the +EV move [img]/images/graemlins/laugh.gif[/img]

[hlacheen]

Faking your death could be profitable!

In all seriousness, I would prob cash out for $7k.

[jaydub]

Minimal policies such as OP's are generally taken or maintained so that the cost of burial is covered. I do not know his family situation sufficiently to advise but wanted to point out this fact.

J

[jively]

If you health is not good, you may not be insurable at some point down the line if you do get married and/or have children.

Also, if the cash value ($7K) is more than your grandparents put into the policy over the years, some of the $7K may be taxable. You can contact the insurance company to ask them, but it may take them a few weeks to research it and give you the answer.

Other than that, you could definitely consider cashing this in. I have cashed small whole life policies like that for myself and recommended it for my brothers and sisters.

-Tom

[jively]

[ QUOTE ]
wait, so does that mean I could cash out something from the life insurance my company is paying for me?

[/ QUOTE ]
No, that policy is probably group term insurance and there is no cash value. Furthermore, you probably don't own the policy.

-Tom

[sebbb]

thanks Tom