What To Do With An Old Life Insurance Policy You No Longer Need

Photo by Helloquence on Unsplash

When you were younger, a life insurance policy with a large death benefit made sense. You had a mortgage. Mouths to feed. Bills to pay. The loss of the primary breadwinner would have been devastating to your family’s financial security.

Today, things are different. The mortgage has been paid, the kids can support themselves, and your financial situation has never been brighter.

In these situations, clients often ask me what they should do with an old life insurance policy they no longer need. Often, it’s a whole life or universal life policy that has considerable cash value and requires a hefty monthly premium that seems to go on forever.

In my last post, I had cautionary guidance: “Are you absolutely, 100% sure you really, really don’t need your old life insurance policy any more?”

If you answered, “Yes!” to that question, then there are at least 7 things you could do to with that old cash value life insurance policy.

Wait! Don’t Cancel That Old Insurance Policy

Photo by Les Anderson on Unsplash

Years ago, when your kids were little and your mortgage was big, you probably bought some life insurance. If you had a friend or family member who worked for an insurance company, odds are good that it was a whole life policy. These policies often come with a hefty monthly premium that you are going to pay for… well, your whole life.

Today, however, life is different. Your kids have kids of their own and the mortgage has been paid. Your need for life insurance has gone away, but those hefty monthly insurance premiums; they are here to stay.

A question I am often asked is, “Should I cancel my old life insurance policy?”

2018 Social Security Raise – Better Than a Stick in the Eye

photo credit: Vitaly. Unsplash.com.

The Social Security Administration projects a 2.2% increase for those receiving retirement benefits in 2018. While this is actually the biggest increase in years – 2017 saw an increase of only 0.3% and 2016 social security recipients saw no increase at all – it’s not likely to bump you into a new tax bracket.

In dollars, the projected increase adds up to about $28 per month for the average social security recipient.

As my grandfather, himself a longtime social security beneficiary, is fond of saying, “it’s better than a stick in the eye”.

How To Protect Yourself From The Equifax Hack

Photo credit: Markus Spiske. Unsplash.com

By now you have heard about the Equifax security breach. Perhaps you are wondering if your social security number, birthdate, driver’s license and other personal data have been stolen. You may have even gone to the Equifax website to see if your information has been affected. If not, you can do so by clicking here.

Or I can save you the trouble: Just assume your personal info has been affected by this breach. With the personal data of 143 million Americans at risk, it’s pretty safe to assume that you, your spouse or your kids have been affected by this.

The real question isn’t “has your personal information has been hacked?”. It’s “what are you going to do about it?”.

Below are three steps you can take to help protect yourself from the Equifax hack and others like it. 

September 21 is World Alzheimer’s Awareness Day

People worry about the financial aspects of retirement, but just as with the rest of your life, money may be the least of your concerns in retirement. Quality of life and your general well being likely take a much higher place on your priority list than the size of your investment account or what the stock market is doing.

September marks World Alzheimer’s Awareness Month. September 21 is World Alzheimer’s Awareness Day.

We all get older and our ability to live independently and manage our personal finances naturally declines as we age.  For some of us, however, these declines can be significant and well beyond the “normal” aging process.