Posts by Michelle James10

Daniel Perez13 said:It's basically the same thing I said earlier. It seems unlikely you'll get all your money back after 6 years if the original contract was set for 30.
You can shorten the term, but in these situations, it's pretty much the same as surrendering the policy. Different companies have different rules about when you need to give notice to reduce the term, but usually, there isn't much difference between that and a full surrender. Just a rough guess, but if you surrender after 6 years, you can probably expect to see around 60-70% of your premiums back.

Fine, let's set aside those six years; I wouldn't mind a later termination either...
but why on earth are you claiming there's no difference between terminating the policy and doing a full buyout? I wouldn't opt for a buyout; I would simply terminate the coverage and reclaim what I've paid in (in the previous thread, they suggested the ideal timing for that would be right around the halfway mark...).

Alright, so let me ask you this—is it actually possible for me to just claw back my principal investment without touching any of the returns? That’s what my broker was telling me, though she did drop a hint that there might be some profit involved here, even if it’s pretty negligible.
Or am I really stuck with no other choice but to just pull the plug and look into an early surrender of the policy?

Lawrence Cruz said:"Collateralized" basically means that if an insured event occurs, the payout goes straight to the bank—it's used to pay off either a portion or the entirety of your principal, depending on how much you owe versus the coverage amount.

It’s required by your Contract Corp—you should double-check the specific language in those documents. If you stop making payments on the policy, you're technically in breach of your agreement with the bank, which gives them the right to call the loan. That said, I doubt they’d actually pull the plug on your credit over something like that.

So, just to clarify—does this "insured sum" refer to the initial contribution, everything the policyholder has paid in up to that point, or the final maturity value? And if this sum is paid to the bank in the event of death or illness, what happens if the coverage amount exceeds the remaining balance of the mortgage? Does the bank simply take what they are owed and leave the rest?

I’m also a bit tripped up by this idea that you can’t touch the cash until the term expires—which, in my situation, isn't for another 25 years. I currently hold a similar policy through Mercury tied to a general-purpose loan at JPMorgan Chase. My agent over at Mercury explicitly told me that after five years, I could give notice to terminate the policy and withdraw the funds (the premiums paid plus a tiny bit of interest) after one additional year. She was incredibly insistent on this point, so now I’m sitting here wondering if I was sold a complete lie.

Honestly, the lack of cash on hand has been getting under my skin lately, though I suppose everything else in my life is actually holding up quite well! 😁😁😁