Personal Finance (Not Investing) • whole life - cash out or still hold as investment

Have a small NW Mutual whole life policy that was originally paired with a term policy.
I've let the Term policy lapse - no longer needed the coverage.
I now look at the Whole Life as just an annual investment.... just not sure how it compares...

Current policy -
Death - $234k
Cash - $162k
Prem - $2,000
Div - $4,800

Was just reading an AARP article - and if we cash out - the proceeds are treated as Ordinary Income - so tax bump -

Thoughts and suggestions ?

Statistics: Posted by ps56k — Tue Sep 10, 2024 11:20 am — Replies 3 — Views 112

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