Need Advice on Whether to Take Out Loan or Surrender Whole Life Insurance Policy
Whole Life Insurance Paid up at 96
Opened in 1994
Death Benefit - 34k
Cash Value - 6.7K
Cost Basis - 5.5k
Taxable Gain on Surrender - 1.2k
I am 33, my dad opened this a little after I was born and transferred it to me. The premiums are very cheap quarterly payments.
Single, No Kids. I’m in a very bad financial spot right now, including a banking scam that cleaned me out. The cash value amount would be a godsend right now.
However, I am unfamiliar with the loan option. Is there interest on the loan if taken? Or do I just continue paying my current premium?
I make about 50k a year so am unsure how affected I would be when filing the taxes for the surrender. I keep seeing conflicting advice in the personal finance sub and what not and would like to share my story on here for some much needed advice.
I am close to cashing out just so I can stay above water and pay my rent
Please, any insight would be greatly appreciated