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|Thu, 01-01-2009 - 9:36pm|
I need another perspective ladies.
My DH's mom signed over a life insurance policy last year (without my knowledge as I had already told her twice we did not want it). It is for 50,000 and is whole life insurance. The kicker is they borrowed against this policy, so we currently owe $2400 on this policy which I must pay the interest on every year. I take my debt really seriously, and I feel like she just dumped her debt on my plate. We can't just write a check for this, and DH just doesn't understand why I am so upset about it. He refuses to cash out the policy as it has a cash value of 4,500. We have more than enough life insurance without this policy, but what do I do? Do I just let it go and pay off the stupid 2400 that isn't my debt, or do I keep bugging DH to cash it out so it isn't a point of contention anymore?
Is it typical for people to borrow against life insurance policies and create debt on the policy? I am just not well educated in this field.