re: My Whole Life Ins. situation and advice request

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Surrender charge $26,919.00

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Does that keep going up or stay pretty much the same? As in if you pay another $25k is it going to stay at $26k ish so your new cash value goes up greatly?

Here's what few of these guys tell you, these insurance salesman and companies make out bigly on the policies the first 2-3 years. So you have to make it past that time, there's a point in the distance future it will make more and more sense from a "cash value" standpoint with some life insurance but your investment as far as appreciation will stop making as much sense.

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This thread got me looking into my own whole life policy. High earning medical professional, and someone I thought I trusted has me paying $25,000/year in a lump sum once a year into a Variable Universal Life Insurance Policy through Lincoln Financial.

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A Variable Universal Life policy and a whole life policy are two different things but they frick you just as hard as the other.

If I could name one policy worse than a whole life policy, it would be a universal life policy. In the 12 years I've been doing this, I have sold a grand total of ZERO universal life policies and the reason is because they will frick you long and hard but you won't realize it until years, maybe decades, down the road. Get out of that shite now. Seriously. Your premiums are NOT fixed and it is NOT a permanent policy. Each year you get older the cost of insuring your life increases and if you continue paying the same amount each month, you're going to have the difference come from your cash value. Eventually you'll get a notice from Lincoln Financial (which is a great company, by the way) saying that you will need to start paying way more than before if you want to keep the policy. This only gets worse with bad economies/markets.

Same advice applies to you as to the OP -- get out of it and go term then invest the rest into an actual investment product that's designed to make you money instead of the insurance company.

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Am I fricked? Any advice appreciated.

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Check out some non-personalized advice and general thoughts on the subject of “should I keep the whole life policy I have”


The short answer is, “it’s complicated,” but at this early on, if you don’t have a great reason to be in a Whole Life policy (as mentioned before- disabled kid, estate planning…not a whole lot else, but there are some nuanced situations. If you’re asking this in this way, though, it would seem as if you likely aren’t in such a nuanced position), then cancelling now is almost certainly going to be better than cancelling later if you compare future returns with staying in vs getting out. Your return will be very negative now. If you stay in, it should eventually turn more positive. It almost certainly won’t turn more positive than you stopping it and putting that money into any reasonable asset allocation.
Exception: you die
But a term policy could easily be bought with equal or higher value/death benefit and the remainder of the premium you’re saving be invested and still be true.