What is “Executive Protector” insurance, and is it worth holding onto?
Some time ago, my father-in-law purchased a $25,000 policy from State Farm known as “Executive Protector.” He has since transferred the policy to my wife, who is now responsible for the annual premiums of $110. However, we’re still uncertain about what this insurance entails and whether it’s beneficial to maintain.
“Executive Protector” insurance is a type of life insurance policy that often provides not only death benefits but also additional features that may include cash value accumulation, terminal illness benefits, or even accidental death coverage. The specifics can vary depending on the insurer and the policy details.
Here are a few points to consider when evaluating whether to keep the policy:
Policy Benefits: Review the benefits offered by the Executive Protector policy. If it includes valuable features like cash value accumulation or additional riders (e.g., critical illness), it may be worthwhile to keep.
Premiums vs. Coverage: Compare the $110 annual premium to the coverage amount of $25,000. If the premium feels right for the coverage and any additional benefits it provides, it can be worth it.
Financial Needs: Consider your current financial situation and future needs. If the life insurance coverage is essential for your family’s financial security, it might be beneficial to maintain the policy.
Alternative Options: Research other insurance options available in the market. You may find policies with better benefits or lower premiums.
Consult an Expert: It might be helpful to speak with a financial advisor or insurance agent who can provide insights specific to your situation.
Ultimately, whether it’s worth keeping the policy depends on your family’s financial needs, the benefits of the policy, and comparisons to other available options.