johnemmett
New member
Hello,
I signed up for a whole life CVLI policy with New York Life about 4 years ago. Through my previous employer we had a NYL financial adviser and at the time, the way the adviser explained a CVLI to me, it may sense and seemed like a good investment.
After browsing r/personalfinance regarding CVLIs, I am trying to determine if this financially makes sense for me to continue having and, if not, what are my options moving forward.
I'm 31 years old, no dependents, no plans to ever have children - so basically I don't think the life insurance part makes sense to me any longer.
I work in the medical field making 130k annually, live in a high cost of living area and likely will stay here the rest of my life.
I have been questioning for a while if I should continue the CVLI, however I'm considering buying property and am looking at the cash value as a possible source for part of my down payment.
As mentioned previously, I have had the CVLI for 4 years.
My monthly premium is $185.
My current cash value is $5,670.91.
I'm wondering if I should:
- Continue paying into this account. If I pull a "loan" from my cash value to use as my down payment, my understanding is I am then basically locked into the CVLI until I pay back that loan.
- Cancel the CVLI. In this situation, I understand there may be fee associated with cancellation/surrender. I am awaiting a copy of my contract for the CVLI to see if it outlines the cancellation policy. My question here is, are there typically large fees/money lost with cancelling a whole life CVLI this early? Does anyone have experience with cancelling one of these policies through NYL?
- Change the policy to reduced paid up (RPU) - this is something someone on r/personalfinance mentioned. However my understanding is this would basically just give me a guaranteed death benefit of the cash value (which seems pointless at $5,670).
Thank you for any advice!
I signed up for a whole life CVLI policy with New York Life about 4 years ago. Through my previous employer we had a NYL financial adviser and at the time, the way the adviser explained a CVLI to me, it may sense and seemed like a good investment.
After browsing r/personalfinance regarding CVLIs, I am trying to determine if this financially makes sense for me to continue having and, if not, what are my options moving forward.
I'm 31 years old, no dependents, no plans to ever have children - so basically I don't think the life insurance part makes sense to me any longer.
I work in the medical field making 130k annually, live in a high cost of living area and likely will stay here the rest of my life.
I have been questioning for a while if I should continue the CVLI, however I'm considering buying property and am looking at the cash value as a possible source for part of my down payment.
As mentioned previously, I have had the CVLI for 4 years.
My monthly premium is $185.
My current cash value is $5,670.91.
I'm wondering if I should:
- Continue paying into this account. If I pull a "loan" from my cash value to use as my down payment, my understanding is I am then basically locked into the CVLI until I pay back that loan.
- Cancel the CVLI. In this situation, I understand there may be fee associated with cancellation/surrender. I am awaiting a copy of my contract for the CVLI to see if it outlines the cancellation policy. My question here is, are there typically large fees/money lost with cancelling a whole life CVLI this early? Does anyone have experience with cancelling one of these policies through NYL?
- Change the policy to reduced paid up (RPU) - this is something someone on r/personalfinance mentioned. However my understanding is this would basically just give me a guaranteed death benefit of the cash value (which seems pointless at $5,670).
Thank you for any advice!