Should i get rid of my modied whole life insurance

[ygbodybuilder10]

Im getting older and im looking into make different financial moves that could benefit me in the long run and dispose of those that are useless.


This policy provides valuable benefits. As of this date, you have the following important coverages:
•
Modified whole life insurance death benefit of $23,320 in the event of the insured's death
•
A non-tax qualified Flexible Premium Annuity Rider designed for long term accumulation of money with a current credited interest rate of 4% and guaranteed never to credit lower than 4%
•
An accelerated death benefit rider which can advance you up to 50% of the policy death benefit when a physician confirms that the insured's death with result within a specified time
•
Waiver of Premium Rider (Hospital or Nursing Home) is designed to waive your premium payments after you remain continuously confined in a hospital or nursing facility for 6 consecutive months
•
The policy loan interest rate is 7.4%. Please refer to the loan provision in your policy
•
Total Death Benefit is equal to the policy face amount plus any term and /or annuity riders in the event of insured's death


Premium Allocation:
Life - $21.67 / Annuity Rider - $86.67

[Nutria]

• What's the cash-out penalty? (It declines over time.)
• I'd look to see how much term life insurance you can get for $22/month. Almost certainly it's more than $23K!
• The stock market has -- over time -- averaged 8% per annum. Even if you put 30% in safe, low-yield bonds, that's still 6%. $87/month at 6% for 20 years is $40K.

[ygbodybuilder10]

• What's the cash-out penalty? (It declines over time.)
• I'd look to see how much term life insurance you can get for $22/month. Almost certainly it's more than $23K!
• The stock market has -- over time -- averaged 8% per annum. Even if you put 30% in safe, low-yield bonds, that's still 6%. $87/month at 6% for 20 years is $40K.

im not sure on the cash out penalty but i will damm sure find that out.

But in other words your saying i should go ahead and drop this thing

[Nutria]

im not sure on the cash out penalty but i will damm sure find that out.

But in other words your saying i should go ahead and drop this thing

I think so. Whole Life is expensive, and merges two important facets (insurance and growing wealth) into one package, when they should be separate.

[ygbodybuilder10]

I think so. Whole Life is expensive, and merges two important facets (insurance and growing wealth) into one package, when they should be separate.

i wish i would have made this decison a few years ago

[disneysteve]

1. Welcome to the site!

2. Do you need life insurance? Is there someone who is financially dependent on you who would suffer a hardship if you died and they didn't get that $23,000 payout?

If you do need life insurance, how much do you need? $23,000 is a pretty minimal amount. It would cover a funeral but not much else. Do you have any savings at all to leave behind if you die?

Whole life is virtually always a mistake but whether or not to drop an existing policy is a bit more complicated. How old are you? Do you have any health issues that make you uninsurable today? If you, go to Accuquote or Selectquote and get some quotes to see how much it would cost you to get the amount of coverage you need. Let us know if you have questions.

[ygbodybuilder10]

i wish i would have made this decison a few years ago

well i dont plan on being without life insurance i rather just more bang for my buck, i know true stage is charging i thing 22 dollars for 50grand for term. i was just looking at this modifed thing i had and it has me dishing out 108 a month, i know i could be doing some investing with that portion going into the annuity

[ygbodybuilder10]

also im 29 no health issues, and i have a little bit in savings but im no betting on that to take care the fam

[Captain Save]

Im getting older and im looking into make different financial moves that could benefit me in the long run and dispose of those that are useless.


This policy provides valuable benefits. As of this date, you have the following important coverages:
•
Modified whole life insurance death benefit of $23,320 in the event of the insured's death
•
A non-tax qualified Flexible Premium Annuity Rider designed for long term accumulation of money with a current credited interest rate of 4% and guaranteed never to credit lower than 4%
•
An accelerated death benefit rider which can advance you up to 50% of the policy death benefit when a physician confirms that the insured's death with result within a specified time
•
Waiver of Premium Rider (Hospital or Nursing Home) is designed to waive your premium payments after you remain continuously confined in a hospital or nursing facility for 6 consecutive months
•
The policy loan interest rate is 7.4%. Please refer to the loan provision in your policy
•
Total Death Benefit is equal to the policy face amount plus any term and /or annuity riders in the event of insured's death


Premium Allocation:
Life - $21.67 / Annuity Rider - $86.67

What's the purpose of the insurance?
with a $23000 death benefit , this is burial insurance. Modified whole life is really for people who wnat cheap burial insurance at first .. the premium will go up in years. I didn't even realize that it's still sold today.

WHere did you get this policy? why do you need the annuity rider?

at 29 you can get a policy for less than $15 for the same amount. for a GUL
Higher death benefit if you go for term
a regular whole life should be around $30 but the premium stay level unlike the modified whole life.

[ygbodybuilder10]

What's the purpose of the insurance?
with a $23000 death benefit , this is burial insurance. Modified whole life is really for people who wnat cheap burial insurance at first .. the premium will go up in years. I didn't even realize that it's still sold today.

WHere did you get this policy? why do you need the annuity rider?

at 29 you can get a policy for less than $15 for the same amount. for a GUL
Higher death benefit if you go for term
a regular whole life should be around $30 but the premium stay level unlike the modified whole life.

i got this policy back in 2011 when i started working for corrections at the age of 23 and my LT was a agent for the insurance company SF&C Insurance Associates, , she sold everyone this or some other type of crap. its through Colorado Bankers Life Insurance Company

I never said i needed the annuity, it just came with it

[snafu]

Welcome to SA. I wish we had the opportunity to talk about your various insurance options 6 years ago. Did your sales rep tell you how much commission you pay? All annuities are padded with fees for the agent.

SA responders ask questions because they want to give you the best advice for your particular situation. Are you contributing to some kind of retirement fund? Does 'Corrections' pay for a life insurance policy for staff? Who is your beneficiary?

I hope you'll look online to see premiums for $ 23,000. for term life insurance offered at Accuquote, Selectquote, or similar. Sums you're paying monthly for Colorado Bankers Life Insurance Company modified whole life could be used for a tax deductible, low cost, Index type retirement fund, paid monthly.

I think you can make your money worker harder for you.

[ygbodybuilder10]

Welcome to SA. I wish we had the opportunity to talk about your various insurance options 6 years ago. Did your sales rep tell you how much commission you pay? All annuities are padded with fees for the agent.

SA responders ask questions because they want to give you the best advice for your particular situation. Are you contributing to some kind of retirement fund? Does 'Corrections' pay for a life insurance policy for staff? Who is your beneficiary?

I hope you'll look online to see premiums for $ 23,000. for term life insurance offered at Accuquote, Selectquote, or similar. Sums you're paying monthly for Colorado Bankers Life Insurance Company modified whole life could be used for a tax deductible, low cost, Index type retirement fund, paid monthly.

I think you can make your money worker harder for you.

thanks man, i just set up a 457 with my job. Since im a state employee they offer life insurance, this is the enrollment time. At this current time my mother is the beneficiary for everything

no she didnt tell me how much commission i pay, i wouldn't be surprise if she knew lol

[scfr]

Since im a state employee they offer life insurance, this is the enrollment time.

Does your state provide some level of life insurance free of charge to employees? How much? If you have some coverage from the state that would cover burial costs, and if you have no dependents, that might be enough for now.

[Nutria]

no she didnt tell me how much commission i pay, i wouldn't be surprise if she knew lol

I guarantee you that a salesman (which is exactly what she is) knows her commission better than you know your pay rate...

[ygbodybuilder10]

Does your state provide some level of life insurance free of charge to employees? How much? If you have some coverage from the state that would cover burial costs, and if you have no dependents, that might be enough for now.

as far as i know they dont, your family just get your pension etc, but i will look into that