65 Whole life policy advice-help!

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aweckerl
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Joined: Wed Jan 09, 2019 6:48 pm
Location: Wisconsin

65 Whole life policy advice-help!

Post by aweckerl » Wed Jan 09, 2019 7:16 pm

So I'm a 29 year old healthy female who got suckered into a 65 whole life policy Northwestern Mutual. :oops:
My annual premium is $4,800.
My insurance amount is $376,676
So far....
I've paid in $1,600
Cash value $6
Do I pull out now take my $6 and buy a beer :sharebeer or is there ANY way to save my $1,596 toward something else...
I'm a sucker and I think I know it....
Thank you for your help.

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Nate79
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Re: 65 Whole life policy advice-help!

Post by Nate79 » Wed Jan 09, 2019 8:00 pm

I'm sorry to hear you were scammed just like thousands of others.

Do you have any need for insurance? If so get the appropriate term insurance in place and then cancel the WL.

Jack FFR1846
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Re: 65 Whole life policy advice-help!

Post by Jack FFR1846 » Wed Jan 09, 2019 8:03 pm

Yes, get out now.

Feel free to contact your state Attorney General to complain that you were sold something unsuitable for you.
Bogle: Smart Beta is stupid

NYC_Guy
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Re: 65 Whole life policy advice-help!

Post by NYC_Guy » Wed Jan 09, 2019 10:16 pm

Get out now.

I’m more a fan of whole life (funded to MEC limits for seven years) than most on this board, but this is a horrible policy for you. And you are very early in the policy life. Let it lapse.

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Stinky
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Re: 65 Whole life policy advice-help!

Post by Stinky » Wed Jan 09, 2019 10:24 pm

I assume you’re beyond your “free look” period. If so, surrender now and buy term for your insurance needs (if any).

If you’re in “free look” (first 30 days I think), give the policy back to the company and get all money back.

And never, NEVER, talk to the agent again. Buy your term from anyone but him.
It's a GREAT day to be alive - Travis Tritt

mcraepat9
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Re: 65 Whole life policy advice-help!

Post by mcraepat9 » Wed Jan 09, 2019 10:27 pm

Do you have any insurable need? Kids, mortgage etc
Amateur investors are not cool-headed logicians.

Topic Author
aweckerl
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Location: Wisconsin

Re: 65 Whole life policy advice-help!

Post by aweckerl » Thu Jan 10, 2019 12:27 am

No kids, no loans-except for the mortgage around 100k.

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Stinky
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Re: 65 Whole life policy advice-help!

Post by Stinky » Thu Jan 10, 2019 4:27 am

aweckerl wrote:
Thu Jan 10, 2019 12:27 am
No kids, no loans-except for the mortgage around 100k.
Are you married? And, if so, does your husband rely upon your income for supporting the household? And would he need some part of continuing income if you were to pass away? Those are questions you should consider as you ponder whether you need life insurance on your life at this time.

Your original post said that your annual premium was $4,800, and you had paid $1,600 to date. Look at the bright side. You recognized your mistake after having paid only 4 monthly premiums. Just guessing here - but if you had paid the remaining $3,200 in first year premium, you might have built up an additional $12 or so in cash value. By lapsing now and getting term insurance instead (if you need it), you're avoiding a significant future loss. And that's a good thing to do.

Welcome to the Board!
It's a GREAT day to be alive - Travis Tritt

Morgan Dollar 1921
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Re: 65 Whole life policy advice-help!

Post by Morgan Dollar 1921 » Thu Jan 10, 2019 5:51 am

Welcome to BH, has the physical copy of the policy been delivered to you in person?

Topic Author
aweckerl
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Location: Wisconsin

Re: 65 Whole life policy advice-help!

Post by aweckerl » Thu Jan 10, 2019 10:50 am

Yes unfortunately I have the physical copy and I'm past the date where I can opt out without penalty.
And no not married either.
Thanks for the honest answers!!!

DaftInvestor
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Re: 65 Whole life policy advice-help!

Post by DaftInvestor » Thu Jan 10, 2019 12:00 pm

In the grand scheme of things a $1600 lesson is not that bad provided you now know to thoroughly research all financial decisions in life going forward being putting down your signature and money. I know people who have lost much more in sticking with bad whole-life policies for years, bought a stock recommended by a friend, drop dollars on a time-share that turned out to be a bad investment, spent years using Edward Jones, etc.

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AllieTB1323
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Re: 65 Whole life policy advice-help!

Post by AllieTB1323 » Thu Jan 10, 2019 1:49 pm

aweckerl wrote:
Thu Jan 10, 2019 12:27 am
No kids, no loans-except for the mortgage around 100k.
No kids , no loans less the mortgage and no husband I'd drop the policy and consider it a cheap lesson.

mcraepat9
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Re: 65 Whole life policy advice-help!

Post by mcraepat9 » Thu Jan 10, 2019 4:01 pm

This thread may help you:

viewtopic.php?f=2&t=268124
Amateur investors are not cool-headed logicians.

Topic Author
aweckerl
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Location: Wisconsin

Re: 65 Whole life policy advice-help!

Post by aweckerl » Fri Jan 11, 2019 1:14 am

That's a good thread!
I would like to learn more about where to put my extra earnings and how to appropriately invest them. That is how this whole mess started.
$$$ are just sitting around in a savings account. I guess that's not the worst thing? (better than giving it to nwm). Do you guys have any resources or solid advice is to where I should start?
Now I'm scared to do anything. *_* I want to open a Roth IRA but I'm not sure where to look now. Or who to trust.

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BL
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Re: 65 Whole life policy advice-help!

Post by BL » Fri Jan 11, 2019 2:49 am

Since you are unsure, I suggest you contact the Vanguard website and follow directions for opening a Roth IRA and withdrawing funds from your bank account. You can put up to 5500 in for 2018 (assuming you earned that much) until tax day in April. Perhaps a Target Date fund or a Life Strategy Aggressive fund would be fine. Even a money market would work until you have decided. If you sign up for e-statements, there should be no charges, and V has very low ER funds. I would trust them if I had questions, as they have no conflict of interest like most brokerages do.

You can put your 6000 in for 2019 from now until next April, either all in one batch or set up regular deposits from your bank account.

Do you have a 401k at work?

There is a lot of good reading here in the Wiki, where there are also videos and suggested books. Here is a quick 16-page pdf with the basics you need to get a good start:
https://www.etf.com/docs/IfYouCan.pdf

Good job getting rid of the whole life before sinking too much money. Stay away from that person and company. Later you may choose to buy a fixed rate term insurance, if you need it, from term4sale.com or a local Independent insurance broker who can shop various companies for you.

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Stinky
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Re: 65 Whole life policy advice-help!

Post by Stinky » Fri Jan 11, 2019 5:11 am

BL wrote:
Fri Jan 11, 2019 2:49 am
Since you are unsure, I suggest you contact the Vanguard website and follow directions for opening a Roth IRA and withdrawing funds from your bank account. You can put up to 5500 in for 2018 (assuming you earned that much) until tax day in April. Perhaps a Target Date fund or a Life Strategy Aggressive fund would be fine. Even a money market would work until you have decided. If you sign up for e-statements, there should be no charges, and V has very low ER funds. I would trust them if I had questions, as they have no conflict of interest like most brokerages do.

You can put your 6000 in for 2019 from now until next April, either all in one batch or set up regular deposits from your bank account.

Do you have a 401k at work?

There is a lot of good reading here in the Wiki, where there are also videos and suggested books. Here is a quick 16-page pdf with the basics you need to get a good start:
https://www.etf.com/docs/IfYouCan.pdf

Good job getting rid of the whole life before sinking too much money. Stay away from that person and company. Later you may choose to buy a fixed rate term insurance, if you need it, from term4sale.com or a local Independent insurance broker who can shop various companies for you.
I agree with BL's advice.

Another excellent source for reading that I would highly recommend is the book "The Bogleheads' Guide to Investing". It's available for less than $20 on Amazon, and it gives a wealth of information about every part of investing in a very easy-to-read fashion. I've given a copy of the book to each of my adult children, who are about OP's age.

One last comment to OP. By posting to this forum and looking at the responses, you've gotten input from a number of folks who have traveled the road that you're on now. They've all made mistakes, and hopefully have learned from them. As you have questions about finances (or most anything else besides politics and religion), feel free to post a question like you've just done. There are a lot of excellent "teachers" who will provide their input on your question.
It's a GREAT day to be alive - Travis Tritt

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