Question : American Amicable Life/Horizon Life insurance Questions..?
Year1-100%toward premium, yr.2-7- 75%, after yr.7 100%.Started at age 21.5, soon to be 24.Paying $ 100/mo., so estimate $ 1700-2000 paid into it so far.It’s 20year policy, no fees after year10, otherwise 5%withdrawal fee.Didn’t know much about it at the time, but been thinking to cancel policy, cut my losses(over$ 1500/current value$ 250), and take that $ 100mo. to low-risk mutual fund with my bank(USAA).Husband is miltary& has SGLI, FSGLI,7yr.term/$ 50,000.He’s 23 with 5 yrs. in so far&plans to retire in military.I have 1yr. to finsh degree, no kids yet(waiting 3-5 years),&work after I graduate until then.No major bills except new car&he deploys soon.Do you think I should cancel policy and invest$ 100 into my mutual fund(used as short term savings).Do you think I should get term life insurance with USAA?I am trying to learn more about insurance &investments, any suggestions?I recently opened Roth IRA$ 20/mo. medium risk.What would you recommend?
SGLI is $ 400,000 & Family SGLI, not sure. the $ 50,000 is separate from military and is term life insurnace for 7 years. No home mortgage. Only debt is cars, one in which we are selling since he’s deploying anyway. Braces are interest free at $ 2K left. Car just recently bought is $ 20K. Rent for me will be under $ 500 for everything, and he is going to be making Hawaii BAH while deployed among other extra pay. We are thinking of putting $ in Savings deposit program@10%.I have to look into it, also thrift savings plan(seems to be a 401k like plan, matched by employer). I have more ‘homework’ to do. Thanks for comments thus far.
savings bank life insurance

Best answer:

Answer by Mark S
Without being able to see your total financial picture, I would lean towards you are thinking pretty good.

One question tho. Is your husband covered by SGLI and FSGLI for 50k each or is he covered for a total of 50k?

This seems way under protected. Do you own your own house? How about your debt? Do you have alot? Are you working right now?

I would ask you for an appointment to take a look at all of your finances. Without doing that, I would not be able to reccomend a course of action that would be to your benefit. I would feel as if I were blind.

I do feel you should consider cutting your losses with the insurance that you have. It appears, from what I see here, that it is a waste of money. Just look at the return you have for 3.5 years- $ 250. That is a -15%!!! Seems like you have the beginnings of a good plan.Get a complete financial analysis done for you and your husband. You’ll be better off in the long run.

Sounds like you have thought this out fairly carefully. From what I see, you have a good plan going. Are both SGLI and FSGLI whole life policies? Would you consider swithching to term to help eliminate your debt and increase your savings?