Help!! Should I surrender my whole life insurance?

I bought a whole life insurance since 1998.I paid almost $1300 annually with $150K death benefit face value.As from Nov 2006 statement my cash value is $7500 in which $5500 is my principle.I already request a new statement from Metlife.At that time,i just migrate to USA and think this policy is right for me and the cash value as a retirement.Now l'm a stay home mom with a 3 years old daughter.My husband work with the city and his job do cover him but very little.We just bought a home 2 years ago.We also contribute to our daughter 529 college plan.So we are having bigger responsibility and more payments to made.And now we should consider term life insurance instead.I understand that we need to have at least 10 times of our income to par match with the term life insurance.As for retirement,I'm thinking of opening non working spouse Roth IRA for myself.My husband have his pension and annunity.Since we live in one income,it's hard for us to make so many payment especially if i still retain my whole life insurance,both our term life insurance and Roth IRA...My question is "Should i surrender my whole life insurance'?.If yes,is there any tax occur for the dividen and interest gained??.I have no idea who to turn regarding this matter..Any advise or suggestion is appreciated!!..THank you in advance!!..

If you surrender the policy, the only taxes that are incurred are those on the gain (Cash value minus amount paid in). I don't understand how you paid $1300 annually, but $5500 is your principle. What do you mean by principle? Cash value less surrender charges?

Without knowing your situation, I'm not sure I can advise you one way or another but it's probably not in your best interest to get rid of it because term will only last for a certain period of time (obviously). Once again, I don't know your situation, but if you can afford it, keep it.

-Joe

Thank you for your feedback..I just received my policy update yesterday.It's said my surrender value until June 2007 will be $8200 and my AP will be until 2016.I have paid $1300 annually for my premium since 1998.I understand that l will lost some money for my cash value insurance if i surrender but never thought that much :(