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Is there a charge if I were to cancel this ?

I have a Variable Universal Life insurance by Western Reserve Life. I have had this for about 9 months and absolutely don't like what I hear about it now. I want to cancel it but do not know if I will get charged. Also, I know clients are allowed to borrow money from their cash value, which will decrease the death benefit... would I be able to borrow money.. as much as i could, and not pay them back,... then cancel it? so at least I get some money back. I know that if I were to cancel it, I would not get any of my money back. thanks ..

Public Comments

1. Im no pro at this, but the business is in it to make money, and if you could borrow, you would owe, and it would be a bad thing on your credit. You do not have enough vested yet to borrow money from it, 9 months is nothing compared to say 20 years. You can simply cancel, and be done with it. Read starting at page 3 of this page, it was selected by the statment on the homepage and then I just picked something to read. It may or may not pertain to you. The policy you have, might also be the same type at many companies, call a competitor and ask them, why are they better than your company policies, and see what they say is a good way to get real info on the company.
2. A Universal Life policy usually has a surrender charge. For example, if you pay $1000 into the policy, and the surrender charge is $7000, then you can't borrow against it and you won't get cash back if you cancel. Once you've paid more than the surrender charge, the policy will have a positive cash value. What you can probably do, though, is just stop paying it, and your coverage will continue for a certain amount of time, especially if you're young. You can call the company and request an annual statement. It should tell you how long your coverage will continue if you stop paying.