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Should i cash out my life insurance and pay off debt?

My parents got me a whole life insurance policy when I was young. Now I'm 24 and have a full time job (have worked here for over a year) and am receiving term life insurance from my work. Do you think it would be a smart idea to cash in my Whole Life policy and pay off all of my debt. Instead of paying high interest rates and barely getting any of the principal paid off i could pay it all off and save my money for other things. I dont need two insurance policies right?! I am engaged but I dont have any children, and dont plan to for another 5-6 years. P.S. I'm not going to work online, i have Bachelors degree. I'm worth more money than that. I can do freelance work if i have to. But I'm not looking for advice on getting an extra job, im looking for financial advice about Insurance.

Public Comments

1. You should talk to a financial expert, your bank may have one you can talk to for free who can look at the interest you are earning vs spending and the amounts. It is very expensive to die and you don't want to leave your loved ones with debt for burying you should the worst happen. Also if your parents have fully funded the insurance policy and it is earning interest there may be penalties for early withdrawal. You should really consider that money retirement savings and leave it there, it may be tough now but when you are ready to retire a few thousand earning interest could be worth millions. Talk to your parents also. They may have suggestions or have emotional attachments to that money and finding out you cashed out could damage your relationship. The people we love are not always rational about us or about money and a good relationship with your family is worth more than money.
2. Cash value life insurance is a crappy deal and a bad investment. I would buy say...15 or 20 level premium term insurance then take the cash out of the policy and pay off debt