Hey everyone, I hope you’re all doing well.
In July of 2019 I was sold a whole life insurance policy while I was in college by an intern from Northwestern Mutual that I went to school with and as more time goes on, the more uneasy I feel about this policy. The more I learn about investments the more I think I messed up. I feel like this is a complete waste of money and I really feel taken advantage of. I’m not entirely sure if my thoughts are correct, so that’s a part of the reason why I’m posting here.
Policy opened July of 2019
Premium –> $100/month, $2400 “invested” so far
Net death benefit: $89,169
Own my own house, no debt from college, no vehicle debt, 100% debt free
Very active lifestyle, healthy diet, etc., etc.
Income: ~$150/week. <— With this being my income, $100/month is kind of a lot of money to me. Especially now that I’m back in college and paying out of pocket for classes.
What are everyone’s thoughts on whole life insurance policy? From everything that I’ve read so far, there seems to be a very negative sentiment and for the majority of people, this is not a good product.
If I cancel this policy, will I receive any of the $2400 that I paid in back? Should I consider cancelling this policy? My account says that it has a “Net Worth” of ~$500. Will this be the only amount of money I’m entitled to receive back?
Of course I can talk to my “advisor”, but I wanted to hear some advice from a neutral third party before talking with them as I suspect they’re going to fight tooth and nail to keep me on this plan. After all, they’re a sales person and I truly don’t believe they have my best interests in mind because I’m assuming they make commission on me.
Tl;dr: Did I mess up by getting involved with this policy? If I cancel, will I be able to get ANY money back?
Disclaimer: I am aware of the sunken cost fallacy and know that if this policy is garbage, I may as well eat my losses and move on.
Thank you for taking the time to read this. I appreciate any help you’re willing to give.