Cash value life insurance

Thanks. I don't need the money, just wasn't sure it it was worth putting into something else.

I'll just tuck it away and look at the statement each year.

Monthly payment X 12 X # of years term coverage that you bought.

Thank you for the clarification

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But the commitment can be a huge win for you if you see it through.

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A huge win for the commissioned agent who sold the policy but not for the customer who paid wayyy more than he needed to for 30 years and let State Farm make money on the investment of the extra amount instead.

Cut your losses now (if you are still insurable) and buy a flat term policy. The loss you’ll take by cancelling the ROP policy early will be more than made up in what you earn on investment of the savings (difference between the ROP and the cost of the flat term). This assumes you can still get a. Lower rate on a flat term policy.

Look, you know you need coverage. Why would you pay way more than you need to when you can be making money for yourself instead of for State Farm — AND still have the peace of mind that comes with a term policy?



Full disclosure: I used to work for State Farm and I sold a grand total of ZERO return of premium term policies and ZERO universal life policies - for the same reason which is that they don’t make sense for almost everyone.

I just ran you through my website (I’m an Ins agent in AL).
20 yr term for 39 yr old, standard health, non-smoker, living in LA, is like $30/month ($360/yr).
With your $4k in cash value, you could have “free” life insurance for like 15 yrs, then invest $75/month.
$75 month invested for 15 years is WAY more than staying with 0% interest.
Fire that agent as well.

Why don't you ask him how much he is paying before you tell him what to do? Lol

He may be better off walking away.
He may not.
It kind of makes sense to slow down and get all the info. No?

The benefit of the return of premium is the guaranteed payback at the end of 30 years. No risk. Guaranteed return.
For some reason, I'm reading that as 0 return? Lol. No. He got a 30 year life insurance policy. I never understand why people talk in half truths to make some point.

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Why don't you ask him how much he is paying before you tell him what to do? Lol

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He literally posted his annual statement for us all to see.

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He may be better off walking away.

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He might be, depending on his current health. Or he may be stuck in an uninsurable state, such as myself, and forced to stick to some vastly overpriced State Farm life insurance. I am there with some life policies I bought through them when I worked for them years and years ago and it is terrible.

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The benefit of the return of premium is the guaranteed payback at the end of 30 years. No risk. Guaranteed return.

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Guaranteed return of your premium payments over the past 30 years, while inflation skyrocketed and State Farm made money off of it. People who think of these ROP policies as a good deal are the same ones that Dave Ramsey is good for because they're obviously not great with money. Or they don't think about how it works. Either way, if you have half a brain you know a return of premium policy is a terrible idea.

Are you on the payroll for the captive companies who charge way more than a person needs to pay for an identical policy or something? You're always coming on here and acting as though the NYLs, NWMs, State Farms, etc. are these fantastic options for term life insurance. They're not. Unless you can afford a large whole life policy and it's the right thing for your situation, NYL and NWM and maybe Mass Mutual are the only ones I'd recommend. Otherwise, buy term from another company.

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Are you on the payroll for the captive companies who charge way more than a person needs to pay for an identical policy or something?

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I get it. You don't like me because I point out that your ideas are kind of basic.

You complain about a state farm commission being outrageous. I presume your commissions are higher than state farm. Am I right? What is the commission on a state farm term policy?

I know that state farm isn't the cheapest life insurance. They are a property and casualty company who sells life insurance. Why would they be the cheapest? But to act like their agents are raping their customers with term commissions is why I call you out.

You promote whole life insurance over a return of premium term policy. Which one pays the higher commission? Honestly.
Which one is more expensive?
If I pay the OP $50,000 at the end of a monthly 30 year term policy, are you going to claim that he still needs permanent life insurance for a burial and final medical expenses?
This stuff is so basic.

I write most of our life insurance through Protective. I don't have a loyalty to protect any company (captive or not). But on a message board, I will call out bad thoughts and ideas.

$73.53