Should I Cancel My Whole Life Policy?

[DHK]

I've said it before and I'll say it again:

Death benefit = cash surrender value + net amount at risk.

Just because it isn't in the policy doesn't make it any less true.

 

[rousemark]

My comments went to the photograph that appears in this posting:

http://www.insurance-forums.net/for...y-whole-life-policy-t75809-5.html#post1009693

which your comments followed.

I then posted my comment, to which you both responded.

That is the context.

Now you want to change the context.

Bullshiite baffles brains.

Now, I know why you act so baffled brained.. You head is full of it. As usual you are spouting off with only partial information about what is going on.. If you will look at Post #35 of this thread, you will see the "rest of the story".. But no, as usual you go off half informed and half cocked. Go threaten to sure a real insurance agent and quit pretending to be one.

 

[scagnt83]

That is the context.

Now you want to change the context.

No. You took a single post out of context. We simply corrected your mistake.

That single page is part of a larger illustration, which is the policy you were giving incorrect advice on.

 

[pfg1]

I'm not too familiar with SF's WL or any of their products, but what are everyone's thoughts on him being rated as a SNT at age 27? You would think he would've been a PNT?

Some companies require a min face to go to preferred rating... ie: $100k. I don't know if that is the case here or not.

To the OP... I would agree with the others. What you have is a decent policy that has a few nice features. Right now your are getting modest growth, improving year after year. Sure, SF isn't the greatest for WL and wouldn't be my first choice...but it will do ok over time - and you know what you have. Looks to be about yr 15 iirc that your cash value grows by what your premium is each year. The net effect is it doesn't cost you anything for the policy at that point. Also keep in mind, you can access that cash value through loans at any point along the way, should you need or want to. Another benefit of having money in a policy like this.

If it was me I'd probably keep it and work on some other investments in addition.

 

[WinoBlues]

Posted only to keep the discussion going - Something for the term while he is young camp, something for the FE later camp and a little for the cash value camp.

ROP Term - $300,000.00 for 30 years (age 57) Then $46,500.00 RdPdUp or $17,866.00 CV net. Convertible to any permanent plan they offer. Premiums waived if disabled. Up to $150,000.00 if terminally ill. All @$52.53mo

Assume Preferred

 

[rousemark]

Posted only to keep the discussion going - Something for the term while he is young camp, something for the FE later camp and a little for the cash value camp.

ROP Term - $300,000.00 for 30 years (age 57) Then $46,500.00 RdPdUp or $17,866.00 CV net. Convertible to any permanent plan they offer. Premiums waived if disabled. Up to $150,000.00 if terminally ill. All @$52.53mo

Assume Preferred

Sounds like a good suggestion.. Whose ROP?

 

[WinoBlues]

Sounds like a good suggestion.. Whose ROP?

That one is Cincinnati life.

..........

Oh and he takes to $800 SV from the SF policy and starts his investment fund.

 

[JohnWalker]

John, What I am hearing is you wish to get better return with your money by investing them. I tend to agree investing for long term will yield better growth than putting money in your WL policies; but I also think you have not grasped the true value of a participating WL policy, and how it can fit in as part of your overall portfolio. Let's forget the death benefit for a sec and purely look at the accumulation side of WL product and investment portfolio. Consider a traditional mix of portfolio made up with stocks and bonds - say 80/20 or 90/10 since you are fairly young; these money are supposed to stay in your portfolio for a long time. As you get older and reach closer toward retirement, your allocation mix may shift toward more conservative by turning those paper assets into real assets. If you an agree to that concept, then you agree that you would need additional safer assets as time passes. So that begs the question what exactly makes up the underlying growth component of your WL policies? For simplicity sake, money that you in the policies are basically handed to State Farm and into their general account; which is approximately made up of 90% bond portfolio (from treasuries to high yield bonds). Additionally, State Farm offers you guarantee cash and dividend (an asset that will only increase and never decrease in value) with your policies. So how cool would that be if you can fit your policies into that 10 to 20% mix of your portfolio managed institutionally instead of you go on your own and pay retail price; and you still got the death benefit when you die. Additionally, your need of conservative bucket will only increase over time. So my suggestion is to leave that 50 bucks a month as your 10% portfolio and start contributing a lot more to your retirement account accordingly, if you are serious about saving for retirement. Long post here, hope it helps. Ray

This is the answer I was looking for. This conversation got off topic and turned into the typical Insurance Forum squabble .

Thanks for keeping it simple and helping me understand the big picture. If you have a website, PM the link and I'll hook you up as a way of saying thanks.

 

[L5tc]

If Feel sorry for the guy who posted this. So much insurance minutia

 

[WinoBlues]

How about a zero premium plan?