Whole Life Insurance Policy California CA
Reader’s Question:
For forty years we have kept a whole life insurance policy. It provides a significant death benefit. There is also substantial cash value. We have our first grandchild, Alicia. As our children are doing pretty well, we are thinking about trying to make sure Alicia can afford to go to college in California. Can our whole life policy help?
Sandy
Fresno, CA
Hello, Sandy!
That’s a pretty generous offer and one Alicia will never forget. Sounds like you have taken good care of your tax-free cash value in your whole life policy. You probably know you can borrow against that cash value. The time may come when you want to consider that to help Alicia or any future grandchildren.
Most whole life policies pay dividends. Does yours? If you do not need the dividends, you could use them to begin a college savings program for Alicia. Why don’t you start this early?
Another possibility is that you could add Alicia as a beneficiary of your whole life policy. Your policy probably allows you to set a pre-determined death benefit for Alicia, leaving the remainder to other beneficiaries. It is a good idea to discuss this aspect of your whole life policy with your carrier in California.
Whole life is for the benefit of your loved ones. Sounds like you know that and are considering using it for a very worthwhile cause. Congratulations on your newest family member and for recognizing your whole life policy as an asset that will work hard for your loved ones.
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