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A "flexible adjustable life insurance" is really a Universal Life Insurance. They just change the words a bit to make it look enticing. Anyway, paying $30/month for a total of $85,000 coverage doesn't sound alot, but you can get more coverage for the same amount by buying term insurance. I don't know your age, but if both of you were 30 years old and you both had a 20 year term policy of $100,000 coverage (for a total of $200,000), that would cost you around $30/month. Base on the information you gave, you and your husband should get a 20 year term insurance, with one of you being the spouse rider. Why? You still have a mortgage and in case something happens to either one of you, wouldn't you want the mortgage to be paid off? You assume that the coverage you have right now is enough, but haven't consider the fact that cost of living goes up every year. If you die, is $35,000 enough for your husband to maintain a same life style? If he dies, is $50,000 enough for you to maintain a same life style? How long will this money last if any one of you die? If I was in your situation, I would try to apply for a 20 year term insurance. Life insurance is something you need to qualify for. Assuming that both of you are in great health, there should be no problem getting life insurance. When I get my term policy, then I would cancel the "Flexible Premium Adjustable Life Insurance." I would then invest the $7100 into mutual funds. You may think that its a bad time to invest right now, but its really a good time to invest if your retirement is so far away like 20 years or so. If your investment was to get an average rate of return of 10% during the next 20 years, you could potentially have about $52,000. That's not much, but at least its something.

Source(s)

I own a 30 year term insurance and invest $333/month into my Roth IRA finance1o1 ...

by Financial Representative

1 year ago

Asker's Rating: 

Without knowing more it's a hard judgement call to make. However, on the surface it's $30 a month so why not just keep it? Ultimately you're going to need coverage for burial at some point. Because the facts are if you don't die before you're 65, you will indeed die after 65. Also, you can see the benefit of sticking some money away.

by Insurance Pickle.com- 1 year ago

There are a couple of ways to look at this, and some questions to ask yourself. 1. If you lose/quit/retire from your job, will your life insurance still be available (i.e. if it's group, can you convert it to an individual policy)? 2. Have you planned for wealth transfer in other ways? Do you expect to have an estate under which your heirs would be impacted by estate and/or gift tax laws? 3. Is your other life insurance permanent? Would you be concerned about having no life insurance if you were to suddenly get ill and no longer be insurable? 3a. Do you have something else in place to protect you if you're ill/can't work for a long period of time prematurely, and "the other makes enough to pay the mortgage and bills without the other one" is no longer true? You have to consider your situtation in total, not just the extra $30 a month. And if you surrender and get the $7100 cash value, what are your plans with it? Will you use it to fund retirement? Are you already max-funding retirement? Or is it vacation money? I can't answer your question soundly in this forum without knowing all of your circumstances; however, I can give you some things to consider. Good luck to you .

by Good♥Gyrl- 1 year ago

I second everything already said and would just add that at $30/month it's certainly not burdensome and, at worst, will provide you and your husband a little bit bigger an estate than you might have had otherwise. I've observed -- from the passing of my own father and of my in laws -- that for families of modest means, every little bit helps during those times.

by gaken2000- 1 year ago