Question: Given 4, should my cousin continue with Permanent Life Insurance, change to Term Life, or cease and desist from any insurance?
Details: 1. Living in Canada, my healthy cousin is 26 years old. She is still a student whose tuition is paid by her parents, earns no income, and has no dependents.
2. Under the advice of their insurance agent, In Sep 1999, her parents purchased for her Whole Life Participating Life Insurance and chose to use the Dividends to increase Coverage, for 20 years, with $100,000 as the benefit amount, and a monthly premium of $50.
3. As of March 2016, her parents have paid $50 x (12 months x 17 years + 6 months) = 9900. They do not know how to adjust for interest and inflation.
4. Reason for the purchase: My cousin knows that if she dies, then $100,000 can help my uncle and aunt after their retirement. My cousin’s parents themselves have Permanent Life Insurance.
- On 29-Mar-2016, her insurance agent confirmed the Cash Surrender Value as $1578.92, if my cousin chooses to stop the policy now.