Approximately five years ago (1998). I purchased an insurance policy. The policy was called to me a "cash value". I was told that over time that I could pay my premiums and eventually the interest from the additional amount received would pay the policy. I thought this would be a great investment tool so I signed up for the $550 a year policy to get $100k in insurance. Time went by and I noticed that my account balance was showing negative balances.
I do understand that these policies are based on the stock market and world conditions. So after losing for two years approximately 10% to 20% of the balance I decided to cash it in. I received my statement and it showed that I had $1500 dollars plus in the account. I found another company that guarantees a minimum interest and was going to put the funds in that account.
As I look through some paper work I noticed that other funds within the policy didn't take a dip like mine. I am upset that I have spent five years with a company that has received my payment on time, yet they can not call me to give me updates or changes in the market. If they give them in the beginning it should be given during the whole period of the investment and not just to get someone to sign on the dotted line.
If as an individual I have the time to research these things I would not have gone to a company that is supposed to be looking out for my best interest. Today I received a check in the amount of a little over $800.00. A surrender fee of $700 plus dollars was taken that I have no idea what this is.
Again, I am not stupid and it may be in fine print, but when you ask someone if you can take the funds out without penalty that should come up. It didn't and I have been taken advantage of in my opinion. Not only was I not updated and kept advised of the market conditions and given additional options, but I have also lost a lump sum of my proceeds along with my negative 10% -20% lossess. Before you sign... Read the fine print! This company has really not represented themselves in a great manor.
I would not recommend their services and would suggest talking with several companies and asking other companies about their competition. They will usually pull something up that we are not aware of. I may never see my $700 dollars plus, but if this helps someone retain theirs its worth the loss. Pass this own to your buddies and tell them to be aware!
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