Keep or Ditch Whole Life Policy?
Jill on Money with Jill Schlesinger
Audacy
4.6 • 1.9K Ratings
🗓️ 26 December 2021
⏱️ 8 minutes
🧾️ Download transcript
Summary
We're sticking with the insurance theme this holiday weekend, this time talking about whole-life policies.
Have a money question? Email us, ask jill [at] jill on money dot com.
Please leave us a rating or review in Apple Podcasts.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to the Jill on Money podcast. It's Sunday, December 26th. And I guess this should have been |
| 0:09.5 | the weekend of insurance because we are answering insurance questions this weekend. It is still |
| 0:14.3 | the holiday weekend. I don't know if you're going to return stuff. I don't know if you're running |
| 0:17.8 | around. I don't know if you're just sleeping off a big meal. |
| 0:25.6 | But we're here sort of metaphorically because we're not really here. Mark and I are both taking this time off. If you've got a financial question, you want to ask it, go to jillonmoney.com |
| 0:31.5 | and just click on the contact button. Okay, so we continue insurance weekend by going to Jess in Florida. |
| 0:40.6 | Hi, Jill. I have a question about a life insurance policy that I have. I bought a whole life |
| 0:47.5 | insurance policy about six years ago with about $45,000 rolled over from two previous life insurance policies. |
| 0:57.3 | Now I've been kind of more looking into finances, and I've realized that that was probably |
| 1:02.7 | a bad investment because I don't have kids and I don't plan on having kids, and I don't make |
| 1:07.9 | a whole lot of money. |
| 1:09.3 | And so I'm wondering if I should surrender that policy |
| 1:11.9 | and invested in something that might have a little lower cost on the back end. |
| 1:16.5 | Okay, so you put 45 grand in six years ago, |
| 1:20.8 | and that was what's called a 1031 exchange. |
| 1:24.5 | I'm sorry, 1035 exchange. |
| 1:26.4 | 1031 is a real estate exchange. So it's a 1035 exchange. |
| 1:30.3 | Any need for life insurance at all? I honestly don't think so. I don't have any real, you know, |
| 1:37.3 | beneficiaries that would need money. Okay. Okay. The surrender period. So for everyone listening, when you buy one of these permanent life insurance policies, what happens is you have a sliding scale down. So you put $45,000 in, and if you pulled all that money out in the first year, sometimes it's a 10% or 12% and then it goes down. Do you know what the |
| 2:02.8 | surrender percentage is right now? I don't know the percentage, but I know the value. It would be about |
| 2:09.6 | $1,200. Okay. So any need for the money? So if we took the $45,000 and you ended up netting, I'm just going to make it up |
| 2:18.9 | $40,000, because there may even be some tax that's due in addition to the, in addition to the |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Audacy, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Audacy and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.