Life Insurnce Policy -- what can I do with it?

ana · Post by **ana** » Tue Dec 18, 2007 12:09 am

Hi Everyone,
Please help in this situation. Both me and husband took a whole life insurance policy in 2005. Now I know we should have taken the Term, alas...

What should we do with the policy now? I have no idea. Seems like a really bad decision now.

I can post details if you need them.
Thanks,
Ana.

MrLong · Post by **MrLong** » Tue Dec 18, 2007 7:58 am

How bad is it? Is it one of the versions of 'vanishing premium'? Who is the underwriter, how much premium have you paid, and what is the surrender value?

In general terms, it takes atleast 10 - 15 yrs for a whole life to start 'performing'.

ana · Post by **ana** » Thu Dec 20, 2007 1:12 am

I do not have ansers to these questions right now. I will post them over the weekend.

Thanks,
Ana

ana · Post by **ana** » Thu Jan 10, 2008 1:06 am

Underwriter is NewYork Life. Policy is Whole Life.

I have paid around 8K and Cash value is 4K. I guess the 4K went into agent's pocket.
The dividends are used to buy additional coverage.

I don't know what should be done with this policy now.

Please advise.

Desi · Post by **Desi** » Thu Jan 10, 2008 7:20 pm

In many cases every additional year you continue with whole life it costs in additional administrative charges and high expenses that are in the investments, so it generally makes sense to lick the wounds and bail out.

The above is a general statement that should be kept in mind but further evaluation should be done viewing the following - surrender charges and how they change from year to year. Where the cash value is invested and costs associated with that.

Without that level of detail which is embedded in the policy documents, most people can only provide general statements.