My checking account has been showing a balance of several thousand dollars more than it should . A single recipient of this amount processed the check that the bank sent on June 9th. My account as of today does not show this. I emailed the bank today informing them. It's not a big deal. No harm done. Just surprised this could happen. The bank has always been accurate.
This idea about cashing out your Life Insurance to afford you a better retirement: Now, that's brilliant! Hal
Not really brilliant. All they are doing is giving you your cash value not the death benefit. The cash value is way less than the death benefit. And you no longer have the life insurance.
Or not. Last summer I cashed in a life policy I had taken out in 1965 for $5,000. The cash value was approx $27,000, which is what I received. Had I died instead of cashing out, my son would have received the higher amount.
With all due respect Hoot, there is absolutely no way a life insurance policy for $5,000 could have a cash value of $27,000. Did you mean $50,000 policy???
How did a thread about a bank error turn into cashing in an insurance policy??? Some days I can't keep up with "the flow" around here.
Me neither. "The flow" is like a "Deliverance river trip" and then I have to mute my sound to stop those damn dueling banjos and dig out my double layer kevlar shorts.
Sorry, but you would be incorrect. I took out the policy at age 19 when $5,000 was a years earnings, and cashed in at age 73. Compound interest is a lovely thing. What did the bank say about your balance issue?
The $5,000 p0licy that you bought at age 19 had to be a Endowment policy and not Whole Life or Term policy.Do you remember how much your premium was? I have not heard from the bank yet about their error.
I was saying before that with the current wave of Baby Boomers, their impending cash liabilities must be enormous. I find the commercials for a new form of Term Life insurance to be interesting. They refund all your premiums should you survive the coverage term. I wonder how much higher their rates are than the other guys. It would be interesting to do an NPV calculation on both types (under the assumption you survive to get your refund) to see how they compare. Gotta love a creative actuary, huh? edit to add: Is this just a new marketing twist on Endowment Policies?