In March 2023, I was conned into signing up for a whole life insurance policy. I thought it was an investment for my retirement/pension and didn’t ask much more. I have been paying $900 a month since then and at this point, I won’t be able to pay rent next month. I let this go for way too long and now I’m panicking. I have dumped my entire savings into paying for this insurance And recently learned that it was a big mistake.
Moving forward. What do I do now? Do I cancel the policy? My cash out value is only $1,200. I’m a teacher and only make $44,000 a year . No dependents. I can’t afford to lose the money that I’ve paid, but I can’t afford to continue paying. I understand whole life insurance are great fit for some people, but I cannot afford to be that person.
I don’t find this post credible. I don’t know any carrier that would approve a $900/month policy for someone earning $44,000 a year. I call BS on this.
Whole life underwriting usually doesn’t require income verification. OP, what is the face amount of the policy? A $900 premium for whole life must indicate a significant, nearly guaranteed payout.
This is a clear example of being conned. She was sold something that was definitely not in her best interest just so her dishonest broker could earn a commission. People like that should be in jail
It’s clear to me here that you’re adhering to the sunken cost fallacy. If you need the money and can’t afford to pay the premiums, stop paying the premiums.
Cancel the policy. I understand you don’t want to lose the money you’ve already paid, but it’s gone unless you keep paying. It’s a tough situation, and I feel for you, but you have to accept this one as a loss.