Should I Cancel My Whole Life Policy?

[DHK]

People always go sideways with these older WL policies.

The policy was taken out only 5 years ago.


We're only seeing the guaranteed values in the above illustration. Any chance we can see the non-guaranteed illustration values, if any?

 

[pfg1]

As mentioned, get an inforce illustration. The policy has paid up additions which means its growing in DB as well as cash value.


Where does it state that this policy has PUA dividend option?

62....I just re-looked at it, it says paid up insurance on that one column.

So maybe that does not mean paid up "additional" ins, so I could be wrong in that assumption. I don't know much about state farm illustrations, but am pretty sure they pay dividends, if declared.

Again, a current inforce would be the best, so to determine what it is...then can make an educated decision.

 

[62doddst]

[/QUOTE The paid up insurance shown is the nonforfeiture option if the policy has lapsed, as is the extended term option. The options are surrender for CV, reduced paid up and extended term. The only place to see the dividends are on the annual statements or in-force illustration. That is why I asked how it was known to have PUAs dividend option or accumulation? We have not seen that yet. It doesn't really matter as I stated prior the accum or PUAs will be added to the guaranteed cv and death benefit each year.

 

[pfg1]

Yeah, sounds right. I saw paid up ins and immediately my mind went to PUA's, as that is how the policies I write work. Hopefully he'll chime back in with more info.

 

[JohnWalker]

Sorry it took me a while to respond I had to get the illustration then figure out how to upload it so everyone could view it.

Here is a link to one of the illustrations they sent me:
http://www.shiftins.com/img/~www.shiftins.com/snagit1.pdf
The other one is pretty much the same thing with slight variance in value.

It seems as though they are only sending me projections of an ideal policy valuation. I don't want to make a decision based on what could be. Is the current value of the policy listed somewhere on this page?

BTW I appreciate everyone's objective opinion. My agent is actually really nice but I don't want to ask for advice from someone with a vested interest in me keeping the policy.

 

[STIBROKER]

It seems as though they are only sending me projections of an ideal policy valuation.

you are correct.....you need to call and ask if I cancel this policy today how much would I receive.....if anything at all.......

 

[WinoBlues]

you are correct.....you need to call and ask if I cancel this policy today how much would I receive.....if anything at all.......

$457.36 as of July 2nd. for the policy he showed.

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Sorry it took me a while to respond I had to get the illustration then figure out how to upload it so everyone could view it.

Here is a link to one of the illustrations they sent me:
http://www.shiftins.com/img/~www.shiftins.com/snagit1.pdf
The other one is pretty much the same thing with slight variance in value.

It seems as though they are only sending me projections of an ideal policy valuation. I don't want to make a decision based on what could be. Is the current value of the policy listed somewhere on this page?

BTW I appreciate everyone's objective opinion. My agent is actually really nice but I don't want to ask for advice from someone with a vested interest in me keeping the policy.

The pluses are PUAs and WP, GPO riders. Other than that it is a yawner for a guy that most likely will not die for 50 years. Sure both policies will total around $80,000 in todays dollars in face and if he becomes disabled or uninsurable the riders become important.

No way I could recommend anything to him as I do not know anything about him.

 

[STIBROKER]

$457.36 as of July 2nd. for the policy he showed.

Now I see it........so basically he has paid $2,062 in 6 years....which is on course that a wl breaks even in about 15 years.......

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and as a side note the policy guarantee has dropped according to the new illustration....orig...... 10 year ......$1331 now it is......$1268 in year 10.....

 

[rousemark]

Sorry it took me a while to respond I had to get the illustration then figure out how to upload it so everyone could view it.

Here is a link to one of the illustrations they sent me:
http://www.shiftins.com/img/~www.shiftins.com/snagit1.pdf
The other one is pretty much the same thing with slight variance in value.

It seems as though they are only sending me projections of an ideal policy valuation. I don't want to make a decision based on what could be. Is the current value of the policy listed somewhere on this page?

BTW I appreciate everyone's objective opinion. My agent is actually really nice but I don't want to ask for advice from someone with a vested interest in me keeping the policy.

Assuming the dividends declared are at least what is project (could be more) your death benefit will have grown to $39,196.. The cash surrender value will be $23,212. You will have paid $15,337 ..... In other words, your death benefit to your family would be equal to the original death benefit plus the return of almost every dime you have paid into the plan. Should you decide to cash it in, you would receive $8,125 more than you paid in. When you deduct the cost of the term, that is a return of about 3.5% compound interest. In today's interest environment that is not a bad return. Also keep in mind that once the dividend is credited, it cannot be taken away. In other words, you can never have less value this year than you had last year. This is not true of some life products and certainly is not true of market investments.

BTW, if you deal with a broker, they will have a vested interest in the stocks they recommend. If you go to a tailor he will have a vested interest in the suit he recommends, etc. Your insurance agent is no different nor should they be.

 

[STIBROKER]

Assuming the dividends declared are at least what is project (could be more) your death benefit will have grown to $39,196.. The cash surrender value will be $23,212. You will have paid $15,337 ..... In other words, your death benefit to your family would be equal to the original death benefit plus the return of almost every dime you have paid into the plan. Should you decide to cash it in, you would receive $8,125 more than you paid in. When you deduct the cost of the term, that is a return of about 3.5% compound interest. In today's interest environment that is not a bad return. Also keep in mind that once the dividend is credited, it cannot be taken away. In other words, you can never have less value this year than you had last year. This is not true of some life products and certainly is not true of market investments.

BTW, if you deal with a broker, they will have a vested interest in the stocks they recommend. If you go to a tailor he will have a vested interest in the suit he recommends, etc. Your insurance agent is no different nor should they be.

Yea.....if he lives to age 100 hahahahahaha.......