About nine months ago, my partner and I signed up for an “investment account” through Park Avenue Securities that included Guardian whole life insurance policies. A friend of a friend introduced us to it, and I didn’t ask enough questions at the time. Here’s how it works:
We have a high-interest savings account where we deposit our paychecks. From there, a fixed amount is sent back to us weekly to help us budget.
The remainder, along with the interest, is sent to the life insurance policy, totaling about $700 a month.
At first, it sounded simple and great—steady compounding growth over time. But now that our financial situation has changed (wedding, new vehicle, family planning), the fixed budget and high premiums are making things tight. I’ve also realized that whole life insurance is very different from traditional investments, so moving our funds to another account, like Charles Schwab, isn’t straightforward.
After nine months of payments, we’ve invested around $8,000-$9,000 each into these accounts. I’ve tried looking for policy details on the client portal, but it’s limited. I plan to contact the company directly, but I’m here to ask: What are my options? Is there a standard way to close or adjust policies like this? Has anyone dealt with something similar?
It sounds like a typical case of being sold a policy by an insurance agent disguised as a financial advisor. Park Avenue Securities exists mainly to sell Guardian life insurance products. I’d stop paying into this immediately. For investments, stick to tax-advantaged accounts like 401(k)s, IRAs, or even taxable brokerage accounts. If you need life insurance, go for term life—it’s much cheaper.
@Vine
Agreed. I didn’t realize the difference at the time, and now I regret it. I’m hoping to figure out how to move forward without losing too much of what we’ve already put in.
Peyton said: @Vine
Agreed. I didn’t realize the difference at the time, and now I regret it. I’m hoping to figure out how to move forward without losing too much of what we’ve already put in.
Unfortunately, you might not get back all of what you’ve paid so far. These policies often have steep upfront costs. Still, don’t throw good money after bad—stop contributing and explore your options.
Guardian is a solid company, but whether your policy is well-designed for your goals is another question. Start by requesting an “in-force illustration” from Guardian. This document will show you how your policy is structured and performing. Look for things like:
How much of your contributions go toward base insurance vs. paid-up additions (PUA). Ideally, 90% of your premium should go to PUA for better growth.
Whether there’s a term rider, which could boost the policy’s efficiency.
Also, confirm whether you can cancel the policy since it’s so new. You may lose a portion of what you’ve paid, but it could be worth it if the policy doesn’t align with your needs. If you don’t want to cancel, consider borrowing against the policy’s cash value to free up funds for other investments.
@Jay
Thank you for breaking it down. I didn’t know about the in-force illustration or term rider. I’ll contact Guardian to get more details and see if we can make this more manageable.
It sounds like you’re looking for an investment vehicle, not insurance. Whole life policies aren’t ideal for that. Once you figure out your next steps with this policy, redirect your funds to a brokerage account for investing. Subreddits like r/personalfinance and r/bogleheads are great resources for investment advice.
If you need life insurance, go for term life—it’s affordable and does what insurance is meant to do. For investing, stick to mutual funds, stocks, or ETFs. Whole life policies mix the two but often don’t excel at either.