Life & Health Insurance/life insurance loan


Hello I have a life insurance policy  loan That is 2,400 dollars I took it out after I filed bankruptcy .Because I have so much financial hardship  Job loss other things no stability  And i  still not able to pay it I can little hear And there But it is  not getting anywhere because of the interest. I talk to Prudential that is who the loan is with And if i  surrender cancel the loan i would get the cash value of 600.00 And would not have to pay the loan  What i would like to know Should i  just cancel my policy And not have the loan over my head Because finacally it seem like i haven't been able to get back on my feet And i don't see That I am going to be able to pay it. Or if i  do will be paying it for the rest of my life . Is Life insurance something you  really need to have Thank  you Carolyn

Your last sentence is the key to the whole thing..."Is life insurance something you need to have?"
Clearly, many people need life insurance, but many don't.  If there is a person who would suffer financial hardship as a result of your death, then you may want to consider having a life insurance policy to provide them with some funds upon your death and that person should be named as the beneficiary of the policy.
If there is no such person, then you probably don't need life insurance.
Your message did not give me some important information, such as the current amount of the death benefit (before reduction by the loan balance), and the amount of premium you are paying into the policy each year.  Is the $2,400 the amount of the original loan, or is it the current loan balance?
If you can provide me with this additional information I would be able to give you more specific advice.
Bill Hezzelwood

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William Hezzelwood


I can answer almost any question about life insurance, such as: 1) What kinds of life insurance are available? 2) I have an old policy that is in danger of lapsing...should I pay more money into it? 3) I think my insurance company is not treating me I have grounds to sue them? 4) My agent has proposed that I buy insurance from company that a good, reputable company?


I am recently retired from a 40-year career as an actuary for a major life insurance company. I worked in the life insurance division and had a wide variety of responsibilities, such as: product development, systems development and management, field compensation, and program management.

Fellow of the Society of Actuaries (by examination) Member of the American Academy of Actuaries Member of the Forensic Expert Witness Association Member of the American Association of Economic and Financial Experts Member of the National Association of Forensic Economics Member of the Financial Planning Association of Orange County

I have a B.S. in Business Administration (major in Actuarial Science) from Drake University.

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