Is it worth canceling a IUL account valued at $4717 but no net surrender value; since the policy is only 8 yrs old and haven’t made a premium payment since 10/15/21?
@sherilyn No, why would you cancel a policy to get $0 and lose the life insurance at the very least? Whether it is worth saving the policy or not is a different question but no reason at all to just give it all up in surrender fees and not extract any value at all from it.
@alzevi Was convinced to get it by the financial advisor on how much money we would have once we cash out on it and where now I feel he is not with our best interest.
@dee1111 When you hear this..... "Your policy is designed to add more premium to build cash value. Don’t think of it as an expense but a vehicle giving you death benefit protection for life, living benefits; if you ever could not do two activities of daily living or develop Alzheimer’s you would receive tax fee income to hire a home health nurse or buy a wheel chair access van and build cash value for retirement, with no risk of losing principal due to stock market decline and potential TAX Free income for life."
@sherilyn Like these policies when set up correctly do work but that’s just a load of garbage they tell people. If you’re worried about LTC expenses, get an LTC rider. They never tell you that while these withdrawals are technically tax and interest free, those fees are just taken out of your cv/premium payments. After a long time when you can no longer afford the premiums + fees, they will lapse the policy. Then the IRS comes around to tax the gains on the policy since you let it lapse. I’ve seen this happen so many times, agents like that need to be shot
@sherilyn If you're 65 or older or have more significant health issues if younger than 65, you can try to sell the policy via a life settlement OR keep it until most of the account value is used up and then try to sell it at that point. Anything is better than just cancelling and getting nothing.
@armisto Shouldn't money grow since it's supposedly being invested into an index fund. They invested into the policy 8 years. Shouldn't they get some type of return on 8 years of investing into an index fund?
