by Guest » Tue Jun 26, 2012 11:14 am
Hi,
I have a whole life insurance policy for which I've been paying $2,500 as premiums annually for the past 7 years. Now, I wish to surrender the policy. How much can I expect as a cash value return from the policy? Any help will be appreciated.
I have a whole life insurance policy for which I've been paying $2,500 as premiums annually for the past 7 years. Now, I wish to surrender the policy. How much can I expect as a cash value return from the policy? Any help will be appreciated.
Posted: Tue Jun 26, 2012 09:05 pm Post Subject:
$1,976.23. Seriously, just call the insurance company.
Posted: Tue Jun 26, 2012 11:22 pm Post Subject:
Yep. The only way to answer your question is call your insurance company or if you have an agent, have them do it.
Posted: Thu Jun 28, 2012 12:04 am Post Subject:
Federal law requires that you are given disclosure annually of the policy values. Have you received your annual statement? This document should have all of the information you want.
If not- just contact the insurer.
InsTeacher 8)
Posted: Tue Jul 03, 2012 02:25 pm Post Subject:
I have a whole life insurance policy
andFederal law requires that you are given disclosure annually of the policy values
This is one of those rare moments when I disagree with my colleague InsTeacher.
Federal law does not govern whole life insurance contracts. Purely a state regulatory matter. Whole life insurance does not normally provide an annual statement -- instead, it provides a "Table of Guaranteed Values" (or similar title) in the contract itself, because the contract is scheduled to perform in a specific manner . . . assuming that all premiums are paid on time and no loans are taken from the cash value.
As others have said, a letter written to the insurance company should provide the information requested. They may not give you the information over the phone.
Posted: Wed Jul 04, 2012 06:30 pm Post Subject:
Whole life insurance does not normally provide an annual statement -- instead, it provides a "Table of Guaranteed Values" (or similar title) in the contract itself, because the contract is scheduled to perform in a specific manner . . . assuming that all premiums are paid on time and no loans are taken from the cash value
In my experience, clients usually (always?) do get an annual statement with whole life policies. I don't know if this is a requirement or not.
The table of guaranteed values is relatively useless in terms of knowing the cash surrender value since it will only be accurate if the following are true:
1)The policy has never paid a dividend.
2) No loans are outstanding
3) If the policy has direct recognition, no loans were ever taken.
Posted: Wed Jul 04, 2012 06:47 pm Post Subject:
Companies are not required to send an annual statement unless they have identified the policy with the state Dept of Insurance as "one with which an illustration will be used" to create the sale.
Universal life is always identified as such, but whole life does not have to be. Participating WL policies probably are, since they want to show the effects of dividend additions, which, as you correctly state, have an undetermined effect on policy values. Nonparticipating policies are governed only by the Table of Guaranteed Values, which states, "assumes all premiums are paid on time, and no loans are taken."
But, it's never a matter of federal law, which is mostly what I was commenting about.
Posted: Mon Jul 09, 2012 08:28 pm Post Subject:
I must agree with Max- I was thinking of a couple of states that DO have the requirement, but it's NOT a federal rule.
Stupid me... once in a while.
InsTeacher 8)
Posted: Tue Jul 10, 2012 05:16 pm Post Subject:
Max wrote,
"Whole life insurance does not normally provide an annual statement --"
Max subsequently wrote, "unless they have identified the policy with the state Dept of Insurance as "one with which an illustration will be used" to create the sale."
Conclusion: Max believes that the majority of whole life only has guaranteed values.
(That may be true, but it is very different than what is sold by most salesmen.)
Posted: Fri Jul 13, 2012 07:30 pm Post Subject:
That may be true, but . . .
You just can't make a commitment to anything, can you?
it is very different than what is sold by most salesmen
Please tell us why every whole life policy comes with a Table of Guaranteed Values and no UL or variable policies do.
Max believes that the majority of whole life only has guaranteed values.
Please don't go putting words in my mouth. As I have posted, the Table of Guaranteed Values "assumes that all premiums are paid on time, and that no loans are taken."
For the policyowner who pays all of their premiums on time, and who never borrows money from the policy, the Table of Guaranteed Values will be 100% correct. That also assumes that policy dividends in a participating policy are not used to purchase paid up additions.
But, then again, that will never be reflected in the Table of Guaranteed Values that will be in a participating policy. Which is also why, when produced as part of a cash value policy basic or supplemental illustration, you find the words, "dividends cannot be guaranteed" somewhere in close proximity.
You have to remember that what is guaranteed may be the MINIMUM as well as the maximum.
Posted: Fri Jul 13, 2012 07:47 pm Post Subject:
I admitted to not knowing whether most whole life policies only have guaranteed values. I said that based upon your post, you believe that to be the case.
Most commissioned salesman when they sell whole life insurance sell policies in which their policies receive statements every year. The fact that they have a "Table of Guaranteed Values" does not stop them from getting an annual statement.
You wrote, "Whole Life does not normally provide an annual statement...instead it provides a table of guaranteed values".
MassMutual, NYLife, Guardian, Northwestern Mutual, Prudential, etc, all send out annual statements. In fact, I don't know of any company that doesn't. But there may be. Do you stand by your statement that the companies have a table of guaranteed values instead of annual statements?
In case this is too difficult for you, they have a table of guaranteed values AND they send out annual statements.
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