Whole Life Termination Question

I have a whole life policy where the cash value is going down rapidly and will approach 0 in 5-7 years. This is due to loans at 6% and Dividends for paid up insurance at 3%.

My question is how do I determined my taxable obligation? I know it is a function of loans, dividends. and money paid in. I have some data available from annual statements.

Customer service is not too good on this issue and I am trying to get an agent assigned to give me some help with options.

Any help would be appreciated.

What company is your whole life policy with? Whole life policies are so expensive, and in my experience as a 3rd party research company that compares life insurance policies, I normally find whole life to be terrible. Do a 1035 exchange into a more appropriate, less expensive life insurance vehicle such as a Variable Universal Life.

Drew623,

You need to stop hawking AXA and their VULs on this site. You are attempting to create doubt where none should exist; a common sales tactic to say the least. Just for the record, VULs are not cheaper than whole life policies...ever. In fact, the only way to make one work properly and safely is to overfund them. In this case only, a VUL may be appropriate. A VUL has underlying annually increasing premium term insurance for the life component and they become more expensive every single year. Whole life has a stable cost of insurance (COI) with comparable returns and has guarantees that VULs do not. I have been in the business long enough to see the train wreck that a VUL can lead to, so your blanket statements that VULs are always better is misleading and a true disservice to readers.

Also, anyone who is with Northwestern is in good hands, as they are a superior company in the industry. I am not affiliated with them in any way, I just don't agree with your numerous posts putting other (and better) companies down, while recommending your own (AXA).

Who mentioned AXA. You must work for NW Mutual because you are defending them religiously. I worked for NW Mutual for 6 years before I left the company because I realized that their proprietary products were not that great. I am just trying to do my part to keep people away from companies and products that are inferior to other companies in the industry

You mentioned AXA twice before this post and blasted AMEX (haven't they been Ameriprise for about 18 months?) as well.

I mentioned AXA in the other two posts solely because they are the 2nd largest company in the industry, and have invented several new products, but I did not mention AXA in this post. Yes AMEX has been Ameriprise for about 18 months, for that very reason, to try to get rid of the negative press from the class action lawsuit. I have had run ins with all of the "Financial Planning" firms like Ameriprise, NW Mutual, New York Life, AXA, MONY, etc. and have found that all of these companies are very similar and are product oriented. If you want my honest opinion, Raymond James is the best comprehensive financial planning firm in the industry. I just don't understand why NW Mutual is worshipped like a god, when truly they are just glorified insurance salesmen.

I have had run ins with all of the "Financial Planning" firms like Ameriprise, NW Mutual, New York Life, AXA, MONY, etc. and have found that all of these companies are very similar and are product oriented. If you want my honest opinion, Raymond James is the best comprehensive financial planning firm in the industry. I just don't understand why NW Mutual is worshipped like a god, when truly they are just glorified insurance salesmen.
Do you see the rub here Drew? You have posted about 10 posts since your join and offered only that these other companies stink and that your AXA VUL and annuities are the mark of a true financial planner. How is this different from the "glorified insurance salesmen" you are trying to discredit?

As you might surmise, it is the individual that makes the professional, not the company.

in my opinion, you will never have a decent financial planner unless they truly understand insurance. it is a key component for every client from lower income to the uber-wealthy. if you denegrate NW Mutual or NY Life as financial planning firms, i seriously have to question your knowledge of the industry. even though i agree that Raymond James is another stellar company.

BLAH BLAH BLAH!!! That is what you are saying!!! NOTHING!!! There is a huge difference between a financial planner and an insurance salesman. Obviously you are probably the latter. Peace I'm OUT!!!

drew, your first three words say it all for you.

There is a huge difference between a financial planner and an insurance salesman.
I thought, for a microsecond, that I recognized this guy - but the statement above makes me think not, for some reason.