What is the current value of a $5000 life insurance policy taken out in 1964?

Question

What is the current value of a $5000 life insurance policy taken out in 1964?

Answer 1

You will have to contact the company.  It could be $0.  It could be more than $5000.

Answer 2

By value, may we assume that you mean the cash value?  If that's what you're referring to, it depends on a lot of factors.  How old was the person when they purchased it?  How old are they now?  Is it a whole life policy?

If it's a whole life policy, the policy was designed at the time so that the cash value would reach $5,000 during the year of the insured's 100th birthday based upon the guaranteed interest rate.

If the insured was born in 1964, the policy probably only has around $2,000 in it.  If the person is 105 years old now, the cash value should have already been paid out and the policy no longer exists.

Also, the policy could be earning and interest rate substantially higher than the guaranteed minimum interest rate, so the value may be inflated because of that.

Basically....call the company, they should be able to tell you if you're allowed to access that info.

Answer 3

That depends on the specific policy.