Am trying to work out the value of a whole life policy and get my head round it all. Background is that a long time a ago signed up to a whole life policy (when I was a mere teenager). I cannot even remember why I signed up, probably because my parents told me to. The deal was you pay 500 pounds a year and the insured amount was 50000 pounds, which is the basic death benefit.
The policy includes a "dividend" and a "paid up addition" and based on the projection provided by the insurance broker would mean if I were to die today my beneficiary would get 100k.
Based on the projections if I were to die when I am 85 years old the pay out would be 300k.
It seems this is a policy with an element of investment but trying to get a straight answer from the broker is not easy.
On the face of what I have provided (and am not sure if I have all or enough information), any thoughts on this?
I understand if I were to surrender the policy today I would get back anything I have put in without any of the dividends or profits made.
I'm debating whether just to surrender the policy as the payout is pretty low but then again the yearly premium is also quite low.