I have a had this policy for 25 years. The rates were locked in for several years. That part has expired and now my rates go up every year. My kids are both grown and out of the house. I've had another term policy for several years. I would like to cancel this policy as the premiums are more expensive and the coverage is less. I have read the original policy but it's pretty vague. Will I get money back from the interest dividends? Is there anything that I need to know before I cancel it?
Cancelling a State Farm Select 10 Life policy
- Thread starter lislog
- Start date
-
- Tags
- state farm
- 16,881
If it’s whole-life you will get the cash value back.
If it’s UL you might get some back.
A question for your agent.
- Thread starter
- #3
- 16,881
Wow! No they are not even close to the same.
Whole life is fully guaranteed to endow. It’s bullet proof. If your client wants guarantees and has lower risk tolerance that’s their product.
UL takes away the guarantees. It’s usually not guaranteed to stay in force for too many years. It will show non guaranteed projections as well as a guaranteed projection (which doesn’t look very attractive) when you sell it. It’s real easy to underfund it’s and it implodes and leaves the insured with nothing. It’s only covered under State Guaranty programs for the guaranteed term and amount which usually expires early in the policy. It’s more for people who will accept more risk in exchange for a possible higher payoff.
- 24,978
No not the same. WL as Newby said is pretty straight forward. Everything is in the first few pages. Premium, cash values and death benefit. Thinks like loans of course change thinks.
UL can be more confusing. There are several different types. But yes you can guarantee a UL. With secondary guarantees built into some ULs.
Pros and Cons in all.
Call the company. They will probably refer you back to SF. Tell them you want an inforce illustration. You also want to know: is the policy convertible, is so to what, how much will you get if you surrender the policy, how do you surrender the policy, ask them to email you a form. If they still try to send you to the agent ask for a Customer service supervisor.
If the above fails, ask your other agent to do a three way call with you and the SF agent. May be a good time to review the other Term's options. If you went through an 800 for the insurance, good luck.
- Thread starter
- #6
Thank you for your responses. I'm trying to figure it all out so I don't have to call my agent back. I bought this policy with another SF agent who died then my SF agent took over my account. I do not have another agent. He sent me the form which has an I-9 for taxes and also a place to put my bank info. When I talked to him initially to tell him that I wanted to cancel the policy, he didn't offer any info other than that he would email a form to sign. I don't know what it's for. Do I have to pay to cancel the policy? Do I get money back? I called the SF customer service line and they only route you back to the agent. Again, I have the original policy info in hand, but it doesn't have any details on it regarding what happens if I cancel the policy.
- 6,458
Caveat, NOT an agent.
Just one thought set for consideration before you cancel the policy.
Are you likely to outlive your term insurance?
If so how will the premiums on this policy compare to premiums on a new term policy at an older age?
Would that information lead you to a different decision about cancelling this policy?
Just one thought set for consideration before you cancel the policy.
Are you likely to outlive your term insurance?
If so how will the premiums on this policy compare to premiums on a new term policy at an older age?
Would that information lead you to a different decision about cancelling this policy?
- 6,458
In regard to agents, if both policies are with State Farm, and if State Farm agents can change the agent of record on in force policies, you might be able to go to another State Farm agent in a different agency and ask them for help in exchange for letting them be agent of record for the policy you keep.
- 24,978
Heaven help me.
What lost dollar said.
What lost dollar said.
- 24,978
If what you are saying is accurate, the SF agent is a tool. He most likely is not making any money servicing the policy. I assume you don't have your p&c policy with him.
Get his email address and ask the questions you have and what we have added.
Personally I would not cancel that policy without those answers. I doubt it but that policy may have a value you are not aware of.
Example: I was asked to help a clients friend with an old policy she could no longer afford due to a medical disability. In the end we found she had disability waiver on the policy. Now, she has a policy on premium waiver and she also withdrew a few thousand dollars from the UL. Also still has the accelerated benefits intact.
Get an agent.
