AboutWillard R. Brumbaugh, LUTCF, CSFP Expertise I can handle questions concerning life insurance, it`s tax implications, how to determine what is appropriate, and how it fits in one`s estate and retirement planning.
Experience For 2 1/2 years I was an expert on AskMe.com, where for most of that time I was ranked #1. I have been a moderator (instructor) for the Life Underwriters Training Council. I have been licensed since 1969.
Organizations I belong to: National Association of Insurance and Financial Advisors - California
and the Inland Empire Estate Planning Council.
I hold the professional designation of Life Underwriters Training Council Fellow.
I have recently been laid off. I have a life insurance plan that is worth $5,181. I just recieved the statement that quoted the surrender value as $181.42. I would like to cancel my policy. Am I only going to get $181.42 back? Or is that the penalty. I really would like to cancel this in order to keep afloat during my job search.
Thank you,
Lee
Answer Dear Lee,
You haven't said so, but it seems that you have a relatively new policy for $5,000 with a company that pays dividends. The $182.42 is the current value of the dividend, and the basic surrender value is still zero.
If this is the only life insurance you have, I hope that your dropping it won't cause a potential hardship for someone. Surrendering this policy will provide only the $182.42.
