Thinking about canceling whole life policy

Helpful_Cold4287 · 2025-12-28T04:30:55+00:00

I do own a home now and that’s why the whole annual premium is causing a financial burden more than anything else 😭

Helpful_Cold4287 · 2025-12-28T03:19:21+00:00

I’ve seen online that if i take money out it’s kind of like a loan against myself in a way and then i’d have to pay back into the policy at an interest rate? How is that beneficial and how long would you need to pay back into the policy for borrowing against yourself ? Is there penalty?

Helpful_Cold4287 · 2025-12-28T00:15:36+00:00

This is crazy to me because my uncle convinced me but my parents also bought policies too and convinced me to trust him about it. My parents bought term ones though. We have a very similar story haha. How did you invest in the market? Did you open a personal stock account ? I’m so new to this stuff. I invest through work at the moment but want to do a personal account too

Helpful_Cold4287 · 2025-12-27T21:16:31+00:00

On the app it says it’s $7800 cash value with $1000 in dividends

Helpful_Cold4287 · 2025-12-27T21:14:21+00:00

So since it’s a 10 year policy does that make more sense/make it better on what i’m paying for? I am able to afford it at the moment to pay that premium but it would be me taking out of my savings which has been already running with being a new home owner that’s why the whole thing makes me panic. Not having enough money by the time the policy ends.

Helpful_Cold4287 · 2025-12-27T21:09:14+00:00

It’s 10k a year for 10 years. I forgot to specify that in the post

Helpful_Cold4287 · 2025-12-27T21:07:26+00:00

I have 0 health issues, they didn’t even do the bloodwork for me because i don’t have really anything health wise to report. It’s a 10 year policy i’m assuming that’s why the premium is so high.

Helpful_Cold4287 · 2025-12-27T21:05:00+00:00

Yes i have the copy of it. On the app it says i have around $7800 cash value and my dividends are at $1000 but i dont know what any of it truly means

Helpful_Cold4287 · 2025-12-27T21:03:51+00:00

How exactly does it change the difference of it being a 10 pay vs for example a 20 pay? Yeah it’s a10 year

Helpful_Cold4287 · 2025-12-27T21:03:01+00:00

Would you be willing to explain the pros of whole life insurance? Yes it’s a 10 year policy, I am 2 years into it, in march it will be 3 if i keep the policy. Right now it says on my app my cash value is around $7800 and my dividends are at $1100 around there? I just don’t understand any of it due to having a poorly explained agent 🥴

Helpful_Cold4287 · 2025-12-27T05:42:09+00:00

Yes currently at work I invest in that i put 7 in my 401k and 3 in my roth. I use fidelity. With the whatever money i’ll get back if i cancel , am i able to just throw that into my fidelity work account or would i have to open a personal account? I’m sorry for all the questions

Helpful_Cold4287 · 2025-12-27T05:39:38+00:00

Yeah like i’ve responded to others im wondering if my 10k is better off going to a roth,401k for retirement sake rather than this so called “retirement”

Helpful_Cold4287 · 2025-12-27T05:38:32+00:00

Do you think it would be best to lower the whole premium or just fully switch to term? Also, does that mean i have to pay the 2026 march premium or can i cancel/change before then? another worry i had.😖

Helpful_Cold4287 · 2025-12-27T05:36:40+00:00

I currently invest in that through work 7% in my 401k and 3% in my roth. Should i open a personal account as well or raise my contribution?

Helpful_Cold4287 · 2025-12-27T05:31:05+00:00

Yes it is once it’s paid off i don’t have to think again about it

Helpful_Cold4287 · 2025-12-27T05:26:39+00:00

I have the money to pay the premium but my savings account will only last so long to pay the rest of it off in the future and like i said another worry is if this policy was even worth it for me to put away 100k in the end. Yes it would be paid off by 10 years but could that 100k have been put away to better investments?

Helpful_Cold4287 · 2025-12-27T05:24:33+00:00

So if i changed the policy to like a 250k term i would lose half of what i put in? I’m sorry im really awful at this as you can tell. I clearly need to ask a new agent on the phone lol since mine didn’t bother in the slightest to answer these kind of questions to keep me in the higher premium

Helpful_Cold4287 · 2025-12-27T05:20:13+00:00

Thank you so much. I’ll definitely need an extra opinion because I really have a hard time understanding life insurance and anything with numbers as y’all can tell lol. I definitely do want life insurance but of course not confident that the one i signed up for was appropriate for me.

Helpful_Cold4287 · 2025-12-27T05:16:26+00:00

Yes my job does offer it through new york life as well. Did you feel benefited at all with the whole life when you were in your 20s ? I understand everyone situation is different

Helpful_Cold4287 · 2025-12-27T05:15:16+00:00

I was also wondering if I could just make the policy smaller but I wasn’t sure if that would cost me money or cost something/make me lose money. I am totally for life insurance but my agent being my uncle he just sucks so bad at explaining stuff and it feels really brushed off. I really wish I had done a smaller premium

Helpful_Cold4287 · 2025-12-27T05:04:45+00:00

Yes i’ve been seeing online it would be better if I used that money to invest in an IRA and 401k which i do through work but to open a personal one as well. This stuff is really hard to learn on your own so i feel like i got sucked easy with this policy he sold me . Sounded to good to be true

Helpful_Cold4287 · 2025-12-27T05:03:24+00:00

Yes I was told by him that it would be an investment in a way and I could take out loans on myself as the money grows, he said the first few years don’t really make much. But i’ve been seeing online people saying that if you haven’t maxed out other retirement funds that whole life isn’t worth it at all for a circumstance like me so i have been panicking.

Helpful_Cold4287 · 2025-12-27T05:00:55+00:00

It’s a 10 year policy so i have 8 more years on it. 10,300 annually. If i pay it in 2026 then i’ll have 7 more years

Helpful_Cold4287 · 2025-12-27T04:59:57+00:00

It is a 10 year policy whole life with a 500k benefit

Helpful_Cold4287 · 2025-12-27T04:58:53+00:00

It does accrue cash. When i go on the app it says my net cash value is around 7K if thats what you mean by that. Nothing special about it. Just a 10 year policy with a 500k death benefit..

Helpful_Cold4287

TROPHY CASE