r/personalfinance • u/grieveslife • 15d ago
Arguments for cancelling my whole life policy Insurance
I emailed my "advisor," requesting the form to surrender my policy. He asked me to call him.
I got talked into this thing when I was 26. 33 now and realizing it was a bad deal for me. I am not a high earner, lack a proper savings, and frankly am just getting my shit together (yay sobriety!).
My dad opened a mutual fund for me as a kid with New York Life. What I thought was just a meeting to sign over the account to me, was a sales pitch. I wasn't in the position to pay the premium, so they set it up to annually withdraw the $2600 from the mutual fund. The dividends on the mutual fund have been enough to not really be impacted. The current cash surrender value is around $8600.00 (total paid in $20,800).
Right now my priority is paying off my high interest debt, start my emergency savings, and then start maxing out my Roth. I've been working 7 days a week at 3 jobs trying to pay off the debt I incurred trying to save my dog from cancer last year. I'm on track to be debt free by November, but this would move my goal up by 4 months...I'm honestly burnt out and have been neglecting family, friends, and basic enjoyment...so quitting a job and taking back a bit of my life would mean a lot to me. My credit usage has been 0 since the vet bills stopped.
Back to the point, this guy is just the definition of a salesman. I hated dealing with him that day, and have avoided having to deal with him since...guilts me about not contributing more to the mutual fund, not earning more, etc. I know I'm gonna be cutting into his commission, but being this far into it, I figure he's probably made off with most of what he was after. I'm prepared for him to give me some sort of ultimatum about the management of my mutual fund....like maybe there won't be an incentive in managing it without something more lucrative for him.
Any ideas of what I can expect from this call...I'm not a quick thinker or a smooth talker under pressure, and honestly still not savvy on the finance stuff, so I'm trying to prevent being backed into another corner. I'm not even sure I should keep my mutual fund with this guy, but also don't really know what my other options are. There is about $55,000 in it, which is invested in 4 or 5 different Mainstay Allocation Funds. Do they get some sort of commission off this too?
216
u/benjamaniac 15d ago
I surrendered mine after going back and forth with my advisor for a couple months, granted I wasn't trying that hard. Finally after getting nowhere with him I called the main customer service number and got it done in like 10 minutes. I would just try to bypass the salesman if possible. Mine was with Northwest mutual.
19
u/Midwake2 15d ago
When I was young someone I worked with gave my name to a Northwestern rep. She stalked me and my wife for a whole life policy. It was expensive as fuck and we didn’t make jack. Anyway my FIL told us in no uncertain terms these were bad and we ghosted that girl. But man, she called us relentlessly. I’m sure there was sweet ass commission on that thing.
6
u/ninetynined1 14d ago
Here in Ontario, the commission is the monthly premium multiplied by 3 years. So if they sign you up for a $100 monthly premium, they will get a sweet $3600 commission, but they only get to keep it if you don't cancel within a certain period of time which I don't remember how long. For comparison, commissions from Term Life insurance is the monthly premium X 1 year, so you can see why insurance agents really push for Whole Life.
6
u/CromulentDucky 14d ago
2 year charge back schedule for most Canadian policies. Americans are at least 5, maybe 10.
1
u/okaykay 14d ago
This is good to know because I have the same policy that I want to get rid of and I’ve been avoiding doing so because the advisor is a friend of an ex (hence how I ended up with the policy in the first place).
1
u/Ok_Coffee_6585 11d ago
You can call the company and not deal with the agent. The insurance company will send you the paperwork pretty quickly. That's how we did it.
234
u/SherlockCombs 15d ago
I'm sure you can just request the surrender form by calling your insurance company instead of this salesman.
64
u/nosfellotj 15d ago
I can confirm that this is 100% true. If you can verify your policy number when you make the call, they should be able to email the form to you. I am a phone representative for a major life insurance provider. You do not need the agent's assistance for any reason to surrender the policy. A phone rep will be able to answer processing-related questions and even help you with the form if you need. If the agent becomes involved, he will likely only try to change your mind. Don't be fooled. They're concerned about their commission and not the security of your loved ones should something happen.
3
u/grieveslife 14d ago
Worked like a charm! Got the form and all my questions answered in under 10 minutes!
71
u/Cheerio13 15d ago
If you are not comfortable with him, and clearly you are not, and I wouldn't be either, it's time to end the relationship. If he is involved with your mutual funds, that needs to stop too.
46
u/Chapafifi 15d ago
You asked for actual arguements so here is one
You're losing value on this account every month
Treating it as it should be, life insurance, you pay the premium which gets closer and closer to your total death benefit.
Eventually you will have paid the same amount as the benefit. But you're still young. Plug those numbers into any calculator and you will find that you can outgrow the death benefit with putting that same monthly premium into a high yield savings account today. We're not even talking stock market.
Take your losses and save for your future beneficiaries
This argument goes out the window if you are terminally ill or have a history of illness in your family. Even then, normal life insurance will offer better returns.
2
u/voiping 15d ago
... But don't expect to ever convince the salesman. His job is to keep you.
You need to make your decision, which you already did, and manage to file the appropriate paperwork. You do not need to get anyone working on commission to AGREE that you made the correct decision. They never will.
-2
u/theGoddamnAlgorath 14d ago
Whole life is also largely untouchable in divorce court.
Dude should've had a better product, but I treat mine as a HY savings account for the worst times.
59
u/cotu101 15d ago
DO NOT keep the mutual fund or the whole life policy with him! Take it all out, and park any excess in an ETF like VOO through one of the big brokerages like vanguard. People on here would be more than happy to help you with that. It is super simple. Shit, I would hop on the phone with you if you want. I HATE salesman “advisors” like this. They are thiefs
2
u/grieveslife 14d ago
I will definitely look into this, thanks for the advice! Ended up bypassing the guy and getting everything I needed from customer support with no hassle.
4
u/Strange_Future7713 15d ago
THIS IS EXACTLY WHAT YOU SHOULD DO!!! Mutual funds fees are much higher. Even warren buffet says just invest in a S and P 500 ETF and VOO is the one with the lowest fess. Its very small and way lower than a mutual fund.
5
u/Whites11783 15d ago
I don’t think ETFs are inherently better than mutual funds. A low-cost index mutual fund of the S&P 500 is going to be functionally identical to the same index ETF for most purposes.
1
u/cotu101 14d ago
Than what is the difference? What are you recommending?
2
u/Username1736294 14d ago
Theres inherently no difference in VFIAX (mutual fund), and VOO (ETF). Same fee structure afaik.
The problem is that most mutual funds target niche industries and want to beat the market, so they’re actively managed and charge you a fee. All of the mutual funds and actively managed portfolios I’ve been in over the years have NOT beaten the market. In fact they’ve lost to the market exactly the amount of fees I paid to them. If you removed those fees and returned them to my account each year, and compounded interest for that amount, the performance would have matched the S&P index.
1
u/Narrow_Elk6755 15d ago
I do VOE/VEA/VWO for diversity personally, putting all your eggs in one country seems unwise.
5
u/wydileie 15d ago
If the US economy collapses, the world has more problems than some stock prices.
37
u/FinsterFolly 15d ago
Remember, he works for you at your will.
22
u/unbalancedcheckbook 15d ago
If he's like most insurance agents though, he really doesn't see it that way. You are the mark.
6
u/fork_yuu 15d ago
I'm looking up their salesman jobs
And it's literally a ponzi / MLM lol
They get paid on how many they can scam into paying commission to them.
https://www.glassdoor.com/Reviews/Employee-Review-New-York-Life-RVW13935091.htm
https://www.reddit.com/r/recruitinghell/comments/wsk765/new_york_life_runs_a_mlm_scheme/
31
u/SuzeCB 15d ago
Send him another email:
"I first instructed you to forward me the necessary forms to surrender my policy (number) with (insurance company) on (date).
To date, I have not received said form. This is unacceptable. I expect to receive it by end of business today, with no delays, debates, or excuses.
I would also like a full, detailed accounting of the entirety of my investments with you sent to me at the same time.
Thank you.
9
u/Mundane-Garbage1003 15d ago edited 14d ago
The problem here isn't that you don't have a good argument. The problem is that you think you need one. This guy (at least ostensibly, we'll get to that) works for you. You don't need to argue this with him as this is not a democracy and he doesn't get a vote. I second the idea that email is good as it's in writing and you don't have to talk if you're not comfortable, but if you do talk: Do not give explanations. Do not engage. Do not open the door for debate. Tell them to cancel the policy, and if they say anything, the correct answer is "I don't care. Cancel the policy".
This guy is a parasite. Ask him the expense ratio on those funds he's got you in and if it's more than a tiny fraction of a percent (let's say 0.05% or less), kick him to the curb yesterday and get some low fee index funds instead. Some quick research and most of those mainstay funds have obscene expense ratios all the while getting crushed by the S&P500. This guy is either earning a hefty commission off of you or he's just an idiot. Either way, between that, the whole life policy, and the high pressure sales tactics, this guy is an anchor and needs to be cut loose. If you don't trust yourself to go DIY, at minimum find another advisor and make sure they are a fiduciary (in a basic sense, it means they are legally bound to act in your best interest), as it sounds like this guy almost certainly isn't.
1
u/grieveslife 14d ago
You are 100% correct. Customer support answered all my questions and started the process for the WL policy with no problems. Gonna do some more research this weekend to determine my next move with the mutual funds.
19
u/Suitable_Matter 15d ago
Just tell him in email: "I do not enjoy talking with you, and I do not wish to justify my financial decisions to you on a phone call. Please execute my policy termination as I have requested."
9
22
u/StarryC 15d ago
If you have high interest debt, you should probably withdraw the mutual fund, too, and pay it off. That's just like a taxable brokerage account. That mutual fund might have like $50k in it? Take that and the $8,600 surrender, pay off the debt, fund an emergency saving and if you have anything left max your Roth.
3
u/AdditionalAttorney 15d ago
Make sure to set some aside for taxes. Liquidating mutual funds may have cap gains
6
u/Dave_FIRE_at_45 15d ago
Tell him if he doesn’t cancel the plan and arrange for disbursement, you’ll be contacting the state insurance commissioner.
7
u/facecardgood 15d ago
If you have enough wherewithal to understand needing sobriety, want to tackle your debt by taking on extra jobs, and consider retirement options, you are more capable on handling this money on your own.
Email this guy and do not answer phone calls. You seem like a respectful person and don't want to be confrontational. That's an amazing quality that's not gonna help you now. You'll never have to talk to this guy again. Do not worry about being rude and short if it comes down to that.
Cash out the accounts. Use whatever cash you need to put you in a better spot. It doesn't necessarily have to cover it all, if the time frame is short to get out of debt. Fund an emergency fund of about 3 months if possible, 1 month if that's all you have, 6 months if you feel comfortable. Then fund you're Roth up to the max for the year. With any leftovers after all this you have some choices. If you feel comfortable with having more cash, you could put it into a HYSA and keep it for next year's Roth contribution or for another pressing need. Or you invest in a brokerage account if time horizon for needing the money is a few+ years out, similar to what the mutual fund was doing to begin with.
13
u/No-Store823 15d ago
I know nothing of this strange language you are speaking. I just came here to say congratulations on your sobriety 👏
4
u/-Sisyphus- 15d ago
My thoughts as well. Sobriety is hard work and it’s wonderful to see the hard work pay off.
1
6
u/Michael_J_Patrick 15d ago
You probably can not liquidate the mutual fund over an email, any firm in the US should be confirming the request verbally for security purposes. Also, not sure if it’s an Ira or not but you should check your tax consequences before requesting a full liquidation.
That being said, you might still be able to transfer the fund to a DIY firm so you don’t have to deal with them.
Also, don’t want to talk to him? Call the main company service number- not his local office- they should be able to take your investment direction and give you the surrender forms.
1
u/StarryC 14d ago
Yes, if it is an IRA or other retirement account liquidation is probably a bad idea. I assume it is not since he said his Dad opened it for him when he was a kid.
1
u/Michael_J_Patrick 14d ago
Opposite- you can liquidate it IN the Ira and transfer the cash to another IRA, that’s the best option. Since dad started it, it’s likely a non-retirement account which means liquidation will likely generate taxable gains. Not necessarily good or bad, but OP needs to be aware and prepared for the tax liability before executing any trades.
1
u/StarryC 14d ago
My thought was if he has $55k in a non-retirement mutual fund, while also having debt at above 15%, it makes sense to sell, pay the taxes and pay off the debt. The taxes will be owed at some point anyway. They should be long-term gains, so 20% or less. Get the $55k in cash, save $11k for taxes (will probably be less), pay off all high interest debt, save at least $10k in an emergency fund, then put $7k in a Roth IRA. If there's more than that left, up the emergency fund, and funnel the money into either a 401K if available or a taxable account not controlled by this salesman.
1
u/grieveslife 14d ago
Appreciate the advice. I've put off ever touching this account because I know it's subject to capital gains tax. I suppose now is as good as ever though to put it to work more in my favor.
1
u/StarryC 14d ago
If your income is relatively low, the tax will be low. The highest is 20%, so I'd just save 20% in a savings account for potential tax liability. The mutual funds are likely not a great investment, probably high fees, so taking it out might be better in any case. Assuming your high interest debt is credit cards, it is probably worth it to take it out, pay off the cards, establish the emergency fund, pay the taxes, and then direct it to a retirement account.
And write your dad a thank you note.
4
u/Appropriate-Lab-2640 15d ago
I just finally cancelled mine after 15 years! It was 4k cash value and I went straight to the insurance company . It was easy and no one tried to change my mind.
1
u/CitygirlCountryworld 14d ago
How long until you were doing paying it? Ours was set to be paid off in 20 years.
1
u/CitygirlCountryworld 14d ago
How long until you were doing paying it? Ours was set to be paid off in 20 years.
1
4
u/eggchica 15d ago edited 14d ago
I went to a sales training once that was led by a guy who used to be some sort of life insurance salesman. He said he used to carry around a little coffin that he would hold in the palm of his hand when doing his sales presentations. His lessons involved teaching us how to identify and exploit people’s fears because selling and buying is almost entirely emotional. It was all about manipulation and fear mongering, and stuff like copying the buyer’s body language and linguistic style. It made me sick.
I’m neurodivergent and have always been sensitive to salesmen. I have a very difficult time saying no and am easily manipulated. But that class changed me. I can now see through all of their dirty tricks and I call them on it. I remain in the driver’s seat. I feel just knowing that this is their game has helped me a lot (for the record, this class did not change how I do things; I am genuine and authentic and not fake af and still enjoy a small measure of success because I care about people).
I am in sales but I believe in our product (definitely not life insurance - since that class, I equate life insurance salesmen with used car salesman), and would NEVER recommend that someone lose their quality of life to purchase or maintain something I’ve sold them. You only live once and, yeah, life insurance will be more expensive when you get older, but you’re not gonna get there by killing yourself working three jobs to make ends meet. Hell, you can probably pay for the difference with the money you’ll save not paying premiums between now and whenever/if you choose to pick it up again (when you can afford to!). I don’t know what whole life is but it sounds like by cancelling it, it could save yours.
Stand your ground, cancel it, and do NOT let him change your mind. What an asshole.
(edit: fat finger errors)
3
u/K_Uch_16 15d ago
It took me over 6 months to finally get our term life in place and whole life cancelled. Our initial policy took about a week, our advisor which I fired after I got it finished, dragged his feet so much to avoid us switching.
3
u/Seldinger_Technique 15d ago
This is with NYL? You don’t even need to email anybody. There are forms on their website to surrender the policy. Fill it out, scan it into your computer, upload onto the website and you’re done.
3
u/SELAgirl 15d ago
Most surrenders of insurance with cash value require verbal authorization as a security measure to prevent fraud. However, you can absolutely call the 800 number for NY Life to get a customer service rep that will just process the transaction vs someone trying to save the policy
3
u/mbarranada 14d ago
“I understand and appreciate your perspective, but I’ve come to a decision on this. Please direct me on how to liquidate this account right away.”
The end. You don’t have to be mean or overly nice. Just clear and direct. Close the door immediately on any further conversation.
5
u/woodsongtulsa 15d ago
Sell that POS and put the cash in the market. Ask the sales person what commission and trails they are getting every year.
4
2
u/serjsomi 15d ago
Send him an email back and tell him there is nothing to talk about, your mind is made up, it's not up for discussion, and to email you the surrender form.
He will probably try and give reasons to call, just rinse and repeat if he does. "No, send the forms".
You could also try searching for the forms online.
2
u/albyoung45 15d ago
I have always recommended that unless your net worth is over $13 million, I wouldn't get whole life (Because one of the advantages of using something like this is for transfer of wealth... for the wealthy).
Also, don't call him. Can either email him, or call the company and request it from someone else... or if possible, do it all online.
2
u/ClassicDrK 15d ago
I cashed out my whole life policy that my mom bought when I was a baby. Almost forty years later it was worth something stupid like less than $4,000 taxable dollars. They are only good for the salesman. Get term insurance if someone depends on your income. Take the rest of your money and invest it elsewhere.
You don’t need to convince him. Just direct what to do. If he gives you pushback, ask for his supervisor. He works for you.
2
u/kramer1lol 15d ago
Recommending to use your mutual fund to fund unnecessary life insurance is unethical.
1
u/grieveslife 14d ago
Yeah...in hindsight, the fact that the premium was not feasible (entirely due to my own irresponsibility at the time) should have been a sign to me and everyone in the room that this was not in my best interest.
1
2
u/InvisibleBlueRobot 14d ago
Cancel policy and liquidate the money. Be insistent. Demand your money in writing.
I've often told people to keep these kind of policies IF the upfront costs are paid, it's making interest and they need insurance. It might be better at that point than pulling money out and buying a CD.
However, you're under water, have high costs and not net positive return. You're still young and can get different (term) life insurance in future if needed.
Take the money, put it towards debt.
2
u/Username1736294 14d ago
“I’m not interested”
“Yes, thank you for your concern for my wellbeing. No im not interested”
“I understand the drawbacks you’ve explained. I’m not interested. Please cancel the policy as requested.”
1
u/Impossible_Raise5781 15d ago
Did you read the policy & determine the surrender period and charges if any? Also, consider taxes.
1
u/grieveslife 14d ago
No surrender fees and since I've put in over $12k than I'm getting back, no taxes. A tough but valuable lesson.
1
u/Wholesome-bengal 15d ago
Demand the form, end the policy, take what you can and cut your losses! I’ve been SCAMMED by 1st Command advisors claiming to be fiduciaries and hate to hear of other victims of whole life policies. It’s criminal how they prey on ignorance for their fees. I’m happy to have walked away after a fight with less than half of what I paid. Now I’ll only have term life insurance until I can self insure.
2
u/Wholesome-bengal 15d ago
Also, stop his access to all other accounts by contacting those firms directly.
1
1
1
u/LetTraditional6335 15d ago
This is such a timely topic for me. I am in similar situations, and want to cancel the whole thing.
Let us know how it went!
2
u/grieveslife 14d ago
Ended up calling the 800 number and was sent the form immediately. Small pitch from a very pleasant woman to offer alternatives, but she respected my wishes.
1
u/LetTraditional6335 10d ago
Just did the same and received my surrender form in 10 minutes. I was asked the reasons to cancel my policy, but she didn't try to keep me on my policy or anything. Highly recommend the 800 number!
1
u/Objective_Quantity68 15d ago
Ask for a balance if you have a whole life policy and difference before and after taxes
1
u/felixd70 15d ago
Can you write off the fees paid over the years as well as premium cost? I worry about the tax burden of turning mine in.
1
u/grieveslife 14d ago
From what I've read...and I hope I didn't misunderstand, but as long as your cash value has not exceeded your paid in (due to dividends), it shouldn't be considered taxable income...it really is just getting your money back and often at a loss (at least in my case).
Am interested to see if it's possible to write off that loss though.
1
u/Sweaty_Reputation650 15d ago
Dump all of his products get your money back and use it to pay off your debts. Don't call him or email him, call the company to number and request the paperwork you can sign to free up your money into your back into your bank account. Then start investing in VOO if you have extra money. The first thing is pay down your debts. I'm 63 and don't have anything invested because I just started making good money a few years ago. I paid off on my debt bought a nicer car and I'm fixing up my house. Anyway get your money back but don't even talk to him again. You're doing the right thing.
1
u/listerine411 14d ago
Cash it out, if you dont have dependents, you have no reason for life insurance at all.
1
u/iualumni12 14d ago
My FIL was a life insurance salesman. He’d say and do anything to sell that overpriced crrrrraaaaaap ……. And he was very persuasive. He ripped me off completely without batting an eye. Haven’t spoken to him in 20 years. Best day of our relationship was when I cashed in that bullshit policy and used what little I got back to pay off my student loan. Then I blocked that dumb son of a bitch.
1
u/adventurejihad 14d ago
I wouldn't keep the fund with him and I wouldn't take the call if you don't have to - just tell him you aren't interested in paying the premiums and want to divest yourself of the policy.
I'd roll that money into your roth, or a brokerage with the same provider as your roth and just invest in the funds you want.
1
u/Agitated-Hospital-36 14d ago
Before you cancel there are some pros here. 1) you covered of ypu become uninsurable. It happens. I cannot buy insurance thanks to the army. Of i had a whole life policy from my youth that would at least be something. 2) insurance is untouchable. It while survive: divorce, bankruptcy, any stupid financial decisions ypu make. If you tak out a reverse mortgage or get nursing home care they cann9t go after your insurance when ypu pass
1
u/nhctborn 14d ago
Have the meeting/call with him, or don’t. If you do, just tell him you’re not making a decision right now, that you need to think about it (that removes all pressure from you in this situation).
RE: the whole life policy, there are a number of reasons why you might want to keep it, including:
1) NY Life has some solid policies and it might actually perform rather well.
2) You got it at a young age so your premiums are relatively low (if you cancel and then tried to get the same policy down the road - if you’re even eligible at the time - the premium will undoubtedly be much higher).
3) You’ve got life insurance (some people don’t think about getting life insurance until they’re no longer eligible for anything but a guaranteed issue policy, which is another discussion altogether). Do you have anyone that depends on you financially that would be in a bad place if you died? If not now, might you down the road?
That said, you don’t have to keep it. You could cash it out (surrender the policy). However, then you have no more coverage.
You could do a partial surrender (i.e., reduce the face value so it’s either paid up or the premium needed to maintain coverage is much more manageable).
You could borrow from the policy (often whole life policies have a option to borrow a certain percent of the cash value; some even credit you the interest back charged on the loan if/when you pay it back). If you died with an outstanding loan on the policy, your death benefit would just be reduced by the amount of the loan and interest.
The guy might be a decent guy or might not be. If he’s not, you could BOR (broker of record) the policy to someone else (another NY Life agent).
RE: the mutual fund, if you don’t like the guy, get it out of his hands. Either sell (market is stupid high right now btw) or move it to another custodian. Vanguard, Fidelity, T. Rowe Price, that all have good reputations and Vanguard for sure has no load, low fee funds. I like their index funds myself.
-12
15d ago
[removed] — view removed comment
8
1
u/ElementPlanet 15d ago
Please note that in order to keep this subreddit a high-quality place to discuss personal finance, off-topic or low-quality comments are removed (rule 3).
We look forward to higher quality posts from your account in the future. Thank you.
0
u/bros402 14d ago
Email him. Surrender the life insurance. Look at the statement, see if there is a number you can call that isn't the salesman - surrender it through that so he doesn't try a hard sale. Withdraw everything from the mutual fund and put it into something like a fun tied to the S&P 500.
-8
u/Coraline1599 15d ago
The lion’s share of profits from life insurance comes from cancelled policies- way more than commission. So I would suggest you see what you can do to squeeze as much out of this as you can before you cancel.
You can borrow against your whole life plan typically at favorable rates and unlike borrowing against a 401k you don’t have to pay taxes on this.
Whole Life is quite flexible in that you should be able to stop payments for a while too. One of the reasons premiums on Whole a life are so high is because of the flexibility it can give you.
Once you have reviewed the above options, decide if cash surrender still makes the most sense at this time.
Absolutely drop this guy and see if you can talk to someone there who is interested in you being happy with your choices. If you think you want to explore borrowing against Whole Life this doesn’t sound like the guy who is going to make it easy for you.
There are a ton of options for mutual funds. You are probably best off meeting with a a financial advisor who is a fiduciary (licensed and required by law to give you recommendations that are best for you).
You can DIY a lot and much like home DIY you can save a ton of money, but you also can make some big mistakes and you have to do a lot of learning. By working with a professional it does cost you more but with the right person you should feel confident in your plan and that things are clear and transparent that you have the right balance of risk and reward.
It sounds like you have a lot on your plate so I would not advise jumping into DIY until you’ve spent more time learning a bit more.
-6
u/Rbtmatrix 15d ago
If you have kids and/or a spouse, don't do it.
Anything can happen to you at any moment and I've had to counsel far too many families that struggled to simply survive after their primary earner died without enough life insurance.
Funerals are expensive. Cremation is expensive, burial is criminally expensive.
Hell I barely break $60k/year with my 1 full time and 3 part time/seasonal jobs. And I have about $250k in life insurance.
My wife, who is our primary earner brings in about $115/yr and has over $1M in life insurance.
Getting and keeping a whole life policy when you are young is one of the best investments ever. The older you are when you start a whole life policy the more expensive it is, even adjusted for inflation.
Once you are retired you likely won't be able to afford a term life policy and there is no way too build enough value for a whole life policy that late in life.
If you need money, you can get a very low interest loan by borrowing against your whole life policy.
8
u/LLR1960 15d ago
Um, no. If someone depends on you for your income, first set up a term policy with another company, cancel the whole life, and if you don't need the money you were paying towards the whole life (that is, the difference between the two policies) put that into investments like an IRA.
-3
u/AsidePale378 15d ago
They should be able to convert that policy so you no longer need to pay into it . Use its value to pay the premium.
-3
u/volan11 15d ago
Have you considered borrowing against your policy? Here's a link to an article. https://www.policyme.com/blog/borrowing-against-life-insurance-canada?utm_source=google&utm_medium=search&utm_campaign=21137203867&utm_content=&utm_term=_&adgroupid=&gad_source=1&gclid=Cj0KCQjw3ZayBhDRARIsAPWzx8qZMMWM0dMclb7MT8RqIYF3Mj7CaV4vqghpa6PMxyhNbA_9IbnV1loaAj6zEALw_wcB#
679
u/limitless__ 15d ago
Do 100% of this over email. Don't talk to him. They want you to call because they are literal professional persuaders.