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> life insurance vs credit card

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TSAud power
post Jun 18 2019, 07:46 PM, updated 2 months ago

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This post has been edited by Aud power: Jun 18 2019, 08:31 PM
kinnylaw
post Jun 18 2019, 08:04 PM

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When sh*t hits the fence and you needed the insurance, at least you have insurance to cover you.

But if you surrender insurance to pay your debt, your debt may be low now, but when sh*t hits the fence you use your CC to cover it, you will be back to square one.

Not to mention you have already paid 37500 in total over the last 25 years, and losing over 12K and insurance-less just to reduce your debt, for the life of me I just can't see it as a viable option.
TSAud power
post Jun 18 2019, 08:06 PM

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This post has been edited by Aud power: Jun 18 2019, 08:31 PM
kinnylaw
post Jun 18 2019, 08:10 PM

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QUOTE(Aud power @ Jun 18 2019, 08:06 PM)
cash bonus 40k + surrender value 25k is total 65k. that means i profit 27500 right?
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I'm not an insurance agent, nor can I say the cash bonus is guarantee, you may want to consult the policy for any terms and condition for the cash bonus. If it is true then yes, you just might get 65K. But then still back to the question, what if you really need the insurance and you don't have, ended up paying with your CC...you are still back in debt.

Of course ultimately there is no right or wrong choice to be made here. It's your money your decision. I'm just merely stating my opinion.
aspartame
post Jun 18 2019, 08:13 PM

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QUOTE(Aud power @ Jun 18 2019, 08:06 PM)
cash bonus 40k + surrender value 25k is total 65k. that means i profit 27500 right?

the other consideration is that the assured value only gets paid in the event i die or something, so the insurance function doesnt sound that useful?

from a financial perspective, what direction makes the most sense?
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If u dun have dependents, by all means terminate insurance and pay off the debt..

23% interest - not many things can beat this
TSAud power
post Jun 18 2019, 08:14 PM

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This post has been edited by Aud power: Jun 18 2019, 08:31 PM
TSAud power
post Jun 18 2019, 08:15 PM

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QUOTE(aspartame @ Jun 18 2019, 08:13 PM)
If u dun have dependents, by all means terminate insurance and pay off the debt..

23% interest - not many things can beat this
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dont have dependents, and dont care about them even if i did

Looking at the policy - is this type of insurance just a saving vehicle similar to FD? The assured value isnt very high, but the structure of the cash bonus etc are very similar to what FD is effectively
MUM
post Jun 18 2019, 08:18 PM

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QUOTE(Aud power @ Jun 18 2019, 07:46 PM)
here's a question i was wondering,

lets say i'm paying 1500 a year, for the past 25 years for a GE life insurance with cash bonus, and today in the policy is 40k cash bonus + 25k surrender value. lets say i have 65k of debt with 23% interest rate. is it worth it to surrender insurance to pay the debt?

or is the policy worth more to just leave it until im old?
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how much does this insurance cover?
what does it covers? just life and no other medical or CI in it?
until when will It covers?

This post has been edited by MUM: Jun 18 2019, 08:20 PM
TSAud power
post Jun 18 2019, 08:21 PM

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This post has been edited by Aud power: Jun 18 2019, 08:32 PM
MUM
post Jun 18 2019, 08:24 PM

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QUOTE(Aud power @ Jun 18 2019, 08:21 PM)
assured for 115k
no end date
nothing else apart from that
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since you got no dependent...
take the money to settle your debt.... thumbup.gif
TSAud power
post Jun 18 2019, 08:25 PM

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QUOTE(MUM @ Jun 18 2019, 08:24 PM)
since you got no dependent...
take the money to settle your debt.... thumbup.gif
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okay good discussion

 

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