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Ask Dave

Whole Life Leaves A Hole

What do you do with whole life insurance policies when you're a few years into them?

QUESTION: John is single, 54 years old and has no kids. He bought whole life insurance policies several years ago. He has 4 policies totaling $20,000. Should he stick with them since he’s so far into them? Dave thinks that’s a shoddy idea.

ANSWER: That’s not enough insurance to spit at, to start with. This is a large hassle in your life, so I don’t know why you’d keep it. If no one counts on you to eat, then you are self-insured, and therefore I’d get rid of this crap. Just because you’ve been ripped off for 20 years doesn’t mean you need to keep getting ripped off. Take the money you’ll get from this and run. This life insurance policy is the payday loan insurance of the middle class.