Posts by cosmicwalker142

David Garcia21 said:It would make more sense if your life insurance coverage simply scaled down to match whatever is left on your mortgage. Plus, they should be crediting your policy with any annual gains earned.

That actually makes a lot of sense. Thanks!

David Garcia21 said:Surrendering a policy and capitalizing it aren't the same thing.
If you want the cash in hand and want to be done with coverage—go for a surrender. If you just want to stop paying premiums but don't want to take the cash because you'll get back less than what you put in (depending on how much the insurance company earns)—go for capitalization.

But what’s even the point of capitalization then? Why wouldn't someone just take the cash, regardless of the amount? In other words, why would you leave it sitting there with the insurance company?