In have just finally closed my NZ bank accounts, and rid myself of all bill payments except one remaining life insurance. I am now in a quandary about it.
The sum assured is $145,000 and there will be bonuses on top when and if it is cashed in. It has no surrender value prior to my death, which is why it was not disposed during the breakup. However I can claim it upon confirmation of terminal illness. When I took it out, the premiums were comparitively little, and the sum assured was quite a lot. It would have covered the mortgage and given the family some substantial cash in hand.
Now of course, I have no mortgage to pay off, nor any family in immediate need of support.
I won’t see the money of course, unless I am diagnosed with a terminal illness. In such a case $145 k might be a nice going-out present. However, the premiums are now around $200 a month and escalating every year I age (Why that should be I do not know – surely all the years I have paid in must have added up with interest?).
Be that as it may, I am now looking at paying out a substantial sum annually, that if I survive a reasonable time, perhaps might be better invested in my super scheme.
Should I keep the policy or cancel it and write off what I have paid so far, diverting the $200 a month to super?
Or should I just cancel the policy and spend the loot on having a good time?