Announcement

Collapse
No announcement yet.

Cancelling Whole Life policy

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Cancelling Whole Life policy

    Hey everyone,
    I purchased a whole life policy about 3 years ago before really knowing what I was doing with insurance coverage. I was finally able to get a term policy as I had Kawasaki syndrome when I was a child. Now that I have the term policy in place I was going to stop the whole life. My question is that we do have a son, and there are some concerns about his development but no specific diagnosis, I would think that cancelling the whole life policy will still be the best bet, just checking if there's be any reason to keep the whole life policy with him as beneficiary, if there's be any benefit to that?
    Thanks!

  • #2
    Originally posted by BoehmerMD View Post
    Hey everyone,
    I purchased a whole life policy about 3 years ago before really knowing what I was doing with insurance coverage. I was finally able to get a term policy as I had Kawasaki syndrome when I was a child. Now that I have the term policy in place I was going to stop the whole life. My question is that we do have a son, and there are some concerns about his development but no specific diagnosis, I would think that cancelling the whole life policy will still be the best bet, just checking if there's be any reason to keep the whole life policy with him as beneficiary, if there's be any benefit to that?
    Thanks!
    For life insurance, you have your term policy in place. As for concerns about your son, you don't have a specific diagnosis yet. When and if you do need to care for him after your retire or pass away, a 529 ABLE and a special needs trust would be the right vehicles for this purpose. While there are salesmen who will sell you a whole life policy for a special needs child, that doesn't mean it's the most appropriate instrument to meet this need. (If all you have is a hammer...)

    Comment


    • #3
      Agree. Before you buy life insurance, you need a complete plan for retirement and caring for your son, if he will need it. Although life insurance MIGHT be part of that plan, you need far more information to decide. If it is difficult for you to get life insurance and you think you will need more than the term you have, that is a good argument to get more TERM now. You could keep the WL policy until the new term policy is in force.

      Meanwhile, get more clarity in you child's needs and plan for that. If a special needs trust turns out to be part of the plan, then MAYBE you should have insurance to fund it. But you could also fund it with your other assets while you are alive and with your estate after you pass.

      Comment

      Working...
      X