Life insurance policy may have outlived its usefulness

Dear Bruce: I have a universal life insurance policy, which I’ve carried since 1982. I’m now 63 years old and considering canceling it.

I have a wife, no children and am in good health. The policy is $200,000 with a cash value of $23,000. The premium payment is $133. I have a 401(k) and a Roth IRA that are currently worth about $500,000. My savings are about the same. In your opinion, should I cancel the policy or keep it? — Bill

Dear Bill: It looks like you have a couple of options here. You can sell the policy. Or you can consider canceling it and getting back the cash value, but with a low cash value, I sus- pect you would be better off selling it. You need to make those inquires.

The fact is, you can afford it; it’s a very reasonable premium. If you want to leave a much larger estate, keeping the policy is the way to go. But you have no children, you’re in good health, and you have ample savings in the event that you pass, so if you prefer to have the cash, I would consider selling it and then compare that to the regular cash value.

Dear Bruce: I have never had credit card debt. If I used my Visa card for any amount, it was paid in full the next month. I did the same with all my credit cards.

However, a very close family member used my Social Security number to open a dental credit account without my knowledge. She charged over $6,000 on this account. I discovered what she had done when I was leasing a car. I have since paid the whole bill.

This has negatively impacted my credit status. I cannot reveal who did this without having her charged with fraud, and also she would lose her nursing credentials. So, what are my options? I have since put a fraud hold on all my accounts, but how can I restore my good credit? — D.B.

Dear D.B.: You don’t have a lot of options. Your family member used your credit without your authorization for her own needs, and you don’t want to press charges.

If I were you, I would keep the fraud hold on the report and just go on living my life. As you need credit, you may have to pay a little more for it because of what your relative did, but that will go away as you continue to pay your bills on time as you always have.

I don’t see any other options except pressing charges. The choice is up to you on this one.