I'm 5 years into my whole life policy with NWM and realizing that its just not a good investment. I've put in about 25k and now have 17k in cash value. I would like to take out that 17k and invest it elsewhere.

Should I expect to pay any fee or tax on this?

  • Can you edit and add country tag. Tax rules vary from country to country. Also indicate the policy taken. – Dheer Jul 19 '15 at 4:28
  • 2
    I detest Whole Life policies, for reasons I've explained elsewhere, but just to be fair: Remember that a large portion of your payments has been for the insurance policy payments. That's sunk cost and you shouldn't expect to see returns on it. The question is what returns you have been seeing on the amount you are paying above the cost of an equivalent policy by itself. Which is probably still disappointing, but is probably (weakly) positive. – keshlam Jul 19 '15 at 17:03

You should ask a customer service rep how much you'll net if you close the account. There will probably be a hefty surrender fee. What you get back shouldn't be taxable as its a return of your own money, not a gain.

  • Thank you, indeed CS was able to give me more answers that I thought they would. – Skylervich Sep 7 '15 at 20:10

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