Would you consider too risky/foolish to...

surrender a life insurance policy in order to get cash that the trustee is asking if we want to keep our 2nd car?

My DH is now considering this. He has a Life Ins Policy worth 10k, cash surrender value is 3k. He is 39 years old, in ok health, has high blood pressure controlled by medication.

The trustee wants 4k from us if we want to keep our car. If my DH surrenders his LI policy, he'll get 3k, and we could get the other 1k
from elsewhere (paid out over 6 mo).

My DH does have a LI through his employer, but of course this is only
good as long as he works there.

We are just going nuts because we really don't know how we are going to manage commuting to 2 separate jobs and our daughters daycare with one car.

Sorry for all the venting and questions...

Footprints,

How much are your payments for the 10k? I would reccomend getting a quote from a Life Insurance Broker for term coverage, you can get quite a bit for less money. This will let you know if your husband's helath is good enough as well.

If you truly want to keep your car, this is a good option. I do feel that you can get much more coverage if you shop around.

This might be an option.

10k of life insurance is enough to bury someone but its not really enough to take care of other needs. You might ask your lawyer and see.

If you really want to keep the car cash it in pay off the trustee. Cash value life insurance is a pretty poor investment anyway. With your husband only 39 years old he can get a quality term life policy for very low cost.

Thanks everyone...actually the policy is paid off. And your right, 10k is enough for a funeral but that's about it. And people die all the time without money/life insurance.

My DH joked that if he died, we could just throw him into the gulf of Mexico and have a party in his honor.

Were going to wait and see and discuss it with the lawyer...


Footprints,

How much are your payments for the 10k? I would reccomend getting a quote from a Life Insurance Broker for term coverage, you can get quite a bit for less money. This will let you know if your husband's helath is good enough as well.

If you truly want to keep your car, this is a good option. I do feel that you can get much more coverage if you shop around.