On 8/23/2014 Ford1224 said: On 8/23/2014 kittymomNC said: I'm sorry to say that whoever sold you this policy apparently sold you "down the river" at the same time. Whole Life policy premiums, if they are true whole life, should never go up even if you live to be 100. I worked in the insurance industry for several years, and I know that there are many unscrupulous so-called "insurance agents" out there, although most are very honest and do the best job they can. I'm still paying $5.73 a month for a policy I bought for my son when he was 3 years old - and he's now 45!
Insurance is a very confusing, complicated thing, and it's too bad that there are those who take advantage of people every day by using that fact to their own advantage for commissions, etc. I'm really sorry this happened to you. I have no idea what you can do about it now, but maybe your story will help someone else to be VERY careful when they decide to buy insurance. I wish you luck with it.
I know . . . I was "had" at the time, I thought "whole life until I am 98" was whole life. Obviously, I was wrong.
I'm stuck with it now . . . I'm certainly not going to drop it. Thanks for your offer to help.
Variable whole life policies are invested in a portfolio of stocks, w/o guarantees of performance. The person who sold it to you was not just an insurance agent, but also licensed to sell stocks too. The money is kept in a separate account (not the insurance company's general fund). It is SUPPOSED to do better than regular whole life...but again, nothing is guaranteed.
Variable whole life accounts have FIXED premiums: if it was "Universal variable whole life" - the premiums can rise or fall based upon the market and their investments.
The premiums were obviously enough to cover the death benefit and cash value for quite some time. Even if the investments started "going south" back in 2008...you had paid enough premiums over the last 15 years to cover any monthly shortfalls. They just took the excess $$$ you had paid in premiums (when the market was going up) to cover you and keep your premiums at the same level.
You have a lot of options. They can (and make them!) draw up a chart to show you all the things you can do now. You can keep your monthly premiums at $160...you can raise them...or you can do anything in between (or stop paying them entirely). All of these options will affect your death benefit to your kids and also the cash value of the account if you want to take the money out sooner...but you won't lose your policy.
Your policy won't immediately go down $100,000 in value if you continue paying the $160/mo.
DON'T let anyone talk you into a new policy...they make a HUGE commission on these types of insurance policies.
You have given them over $38,000 during the last 20 years (not counting interest!). You WILL NOT lose your policy if you don't give them more monthly premiums.
You need to have them run the numbers and show you how your $160/mo. continued premium payments will affect your death benefit. You don't seem to care about the cash value (borrowing) on the account...that will change, based on the market & how they invested your money.
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