Hello, got a question for the esteemed forum members here.
When I was a kid, my aunt and uncle started paying for a Life Insurance policy for me. They did the same for my sister. I think it is a Whole Life policy.
Eventually, they stopped paying the annual premium and my parents took it over. Then when I came of age, I took over the annual payment. The annual premium is $110.
At this point, if I were to pass away, the total pay out appears to be about $25,000.
If I were to close the policy, the cash surrender value would be about $5,000 or so.
I think it would be better to invest this $5,000 and the annual $110 in VTSAX.
So my questions are as follows:
1) Is it better to cash out the policy and invest the cash surrender value sum in VTSAX?
and
2) Is there such a thing as rolling over the cash surrender value to my Roll-over IRA to avoid taxes?
Thanks.