Should I Cash Out My Whole Life Policy to Pay Off Debt?

Seeking Advice
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Hello folks…,

I could use some advice on a big financial decision. My parents got me a whole life insurance policy when I was 10, and I’m 39 now. The premium is $30/month, and the death benefit is about $94k. Recently, a longtime friend has been helping me sort out my finances, and he suggested cashing out the $10k cash value of the policy to make a sizable dent in my debt.

I’m leaning towards doing it, but before I pull the trigger, I want to make sure I’m not giving up some amazing policy that I’ll regret losing later. Has anyone been in a similar situation, or does anyone have any advice on whether this is a smart move or not?

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Hey pals,instead of cashing out, you can borrow against the policy’s cash value. This keeps the death benefit intact, but you’ll still need to pay interest on the loan.also
combining multiple debts into a single loan with a lower interest rate can simplify repayment.

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Cashing out your whole life policy to pay off debt can be an option, but consider potential drawbacks, such as loss of death benefits and tax implications.

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It can be beneficial to pay high interest rates, but bear in mind that you won’t be able to replace the coverage amount for very little more than $30.