Should I Cancel My Whole Life Policy?

Discussion in 'Life Insurance Forum' started by JohnWalker, Jul 1, 2015.

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  1. JohnWalker
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    I purchased 2 whole life policies from State Farm; one in 2009 then another in 2010. Each policy is for $25,000 and combined they cost me about $55/month. At the time I figured they would be a good "investment" because the lady that sold them to me said they would be :twitchy:....

    I was 20 when I bought them and figured why not. But now I don't really see the need for them. I have a steady stream of income and have built a book of business with decent residuals so I don't really think $50,000 worth of life insurance is that important.

    I don't know if this is a killer deal because I bought it when I was really young and should keep it or if I should just use the extra money to start a retirement fund.

    I'm 27 years old with no kids. Should I cancel these policies and just wait to buy term when I'm older and have dependents or hold on to them?
     
  2. STIBROKER
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    STIBROKER The Guy that GREENSKY can't not put on ignore. Moderator

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    you need to take out as much term that you can buy for $55 a month and ditch the state farm.......now......the longer you wait the price goes up....then there is the change of health to think about....I am coming up with 20 year term ...$1,000,000 for $36 A MONTH.....
     
    Last edited: Jul 1, 2015
  3. JohnWalker
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    I figured term would be a better value. Thank you.
     
  4. DHK
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    Why not keep these WL and buy additional term?

    Keep in mind that "residual" income is not guaranteed income.
     
  5. rousemark
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    Cancelling the WL policy and buying term would certainly be the advice of the Primerica/ALWilliams folks. As to what a real insurance agent would suggest would require a little more detail. I can say that at age 70, I wish I still had my original WL policies in place.
     
  6. JohnWalker
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    You're right residual is not gauranteed. I will not factor that into my decision.

    I don't want another policy because I don't really even need the $50k that I'm paying for now.

    My plan was to just cancel the policy and take the money (plus a bit more) and start my retirement fund. Then when, or if, I have dependents I would purchase term.

    Are there any issues with this plan that I'm missing?

    ----------

    Please elaborate. My WL policies are only for $25k a piece. By the time I'm 70 I would have paid $15k. The math doesn't seem like a good value but I could be missing something.

    What details are you referring to?
     
  7. STIBROKER
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    STIBROKER The Guy that GREENSKY can't not put on ignore. Moderator

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    Really......I have never worked with Primerica/ALWilliams.....It just makes sense...he is not married....no kids.....he just needs to preserve his health in cheap term for now....how much does he get back with his time with statefarm policy if canceled now....thinking not much.....lock 1 mill now for 30 years and make adjustments down the line as life changes......or grt ul would be a better deal than what he is doing now......
     
  8. Newby
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    If it's State Farm I doubt you have whole life. It's likely just UL.
     
  9. JohnWalker
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    It says Whole Life Paid-up at Age 100
     
  10. STIBROKER
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    STIBROKER The Guy that GREENSKY can't not put on ignore. Moderator

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    and how much do you get if you cash it out,,,,,
     
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