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Angsbasa, you asked:

<< I have a UAL policy I took out in 1993 ($1200 annual premium payable until age 65) with a $77,000 death benefit. I am 50 years old now. If I continue to pay my premiums, I can take monthly income (life option) at 65 in the amount of $550.00,guaranteed until I die. This policy currently has a cash surrender value of around $7,000. I'll lose around $1250.00 in surrender charges. My question is: Would I be better off at retirement to cash it in and invest in one of the Foolish Four Methods,continuing to add the $1200 every year till 65, or maybe do an index fund, like Vanguard? I don't need the life insurance, as I have $150,000 (term and variable). I need to make up for lost investing time, which is impossible to do at my age because of my late start. Otherwise, I have a traditional IRA (dollar cost averaging monthly/max allowed per year) with around $10,000 in it. What to do!!! >>

Probably the best place to start would be to sit down with your life insurance agent and do an detailed policy review to find out exactly what your options are. You have some “Non-Forfeiture Options” you should focus on to see just what the details are. Then you can make a more informed decision. You'll want to not only review this policy, but also review your other policies to see what your options are there too.

Do you have an Emergency Fund in place? If not, this policy may be able to fulfill that objective, huh???? UL policies are known for being able to skip premium payments when there's a need. Perhaps an option you may want to consider is to stop paying into the policy and fund some other more aggressive investments. Then, in a few years when the surrender period is up, you can then surrender the policy . . .??? There are many other options that may be better for you DEPENDING on a detailed review of your policies as well as a detailed review of all your assets and your planning. Without a lot more detailed information, NO ONE here and appropriately suggest just what might be best for you to do.
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