Evaluating Whole Life Insurance Policy

[AlwaysLearningToSave]

My wife's parents purchased a whole life insurance policy on her life around 15 years ago and have been making payments on it since.  We recently "inherited" the policy and are trying to determine what to do with it. 

While I understand that that whole life insurance policies have their place for high net worth individuals who are looking for tax efficient ways to transfer wealth, let's just say that we are not those people.  I would not purchase a whole life insurance policy myself as I think it would be a poor investment given our circumstances.  But I am trying to figure out whether the fact someone else has paid the premium for 15 years somehow makes it worthwhile for us to continue paying premiums on the policy.

A little info on the Whole Life Policy:
Death Benefit: $15,000
Current Cash Surrender Value: $934.00
Current Annual Premium: $205.44
Approximate Average Annual Increase in Cash Surrender Value for next decade: $110. 

A little background on our circumstances:
We purchased a $300,000 twenty-year term life insurance policy on my wife's life last year.  Ideally, this is all the insurance we will ever need on her life.  Thus, we don't need the death benefits of this policy or the preservation of her insurability.

I've attached a scan of the pages that lay out the guaranteed cash surrender values, dividend payouts, etc.

My inclination is that it would not be worthwhile for us to continue paying premiums on this policy but I just want to make sure I'm not making a knee-jerk reaction based on my deep-seated assumption that whole life insurance policies are never a good deal. 

What do you all think? 

[MoonShadow]

If they had paid it up, so that new premiums were not necessary, I'd say keep it.  But not this one.  You would be better off putting the money into a Roth IRA, since you don't need the death benefit anyway, and a Roth comes with a sort-of death benefit.  You can borrow against the cash value of most whole life policies, but your's isn't high enough to borrow to even pay my mortgage.

[AlwaysLearningToSave]

Thanks for the input, MoonShadow.  I agree with your assessment, especially after using a compound interest calculator to compare results of the policy versus results of Roth IRA investments.  Even with conservative growth, we come out ahead with the Roth unless DW dies, and even then its not much different.  It seems there is no good reason to keep this policy around.

[dandarc]

Yeah - I bet your 300K term insurance isn't much more expensive than this whole life.  Take the $900 and run.