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Hi -

Haven't been around in a while, but the Fool is the place I usually come when I need help, so... here goes.

Dad: 92 this year - in the nursing home - disabled and has Dimensia (sp?) - I am POA.

He has a Whole Life policy with a Death Benefit of $1000 that was bought when he was 16 years old.

The original policy has his Mother (my grandmother) listed as his beneficiary. I do not know if this was changed at any point.

The Policy stats are as follows:
Death Benefit: $1000
Base coverage: $1000
Issue date: 10/12/1944
Issued by Aetna Life Insurance Co.
(now owned by Lincoln Financial Group)

Cash Value: $962.68
Net Surrender Value: $3517.77
Loan Payoff effective date: 7-7-2020 (today)
Loan: 0
Loan interest rate: 5%
Maximum Loan Available: $3471.76
Dividend Option: Accumulate at Interest
Dividends on deposit: $2555.09


Now my understanding of Whole Life policies is that if Dad dies, they will pay his estate (the beneficiary?) $1000, and the insurance company will keep the remainder of the dividends. ($2555.09 I assume.)

Is there any way to withdraw the dividend amount from the policy? Since the cash value is $962.68, is that what we would get if we "cashed" in the policy before death? or would we get the Net Surrender value? If we can't cash in the policy? Can we take out a loan amounting to the dividend amount on it? Would that be cost effective?

I really hate to think the Insurance company would be walking off with @ $2500.00.

Any suggestions and explanations would be helpful.

Thanks -

Lady Ianna

** still don't understand this "Life" insurance stuff. **
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