Class action suit settled

[73ss454]

20 years ago I was sold/flimflamed into a whole life policy for 500K. When I was sold the policy I was told that I'd only have to pay for 10 years $6875.00 and then it would pay for itself and build cash value. At the time I had no idea as to what was going on and I thought it was just great. So I paid for the 10 years and guess what happend on the 11th year? Well at that time I found out that the policy premium had to be paid till the age of 99 and that a portion of the premium could be paid with dividends. None of this was mentioned by the salesperson/flimflamman. So I continued to pay and pay and pay.

About 6 years ago a class action suit was started and I submitted my paper work and forms and waited. I tried to find out form Mass Mutual what was going on but could never get any info.

I called for my cash value the other day and found out that the suit was settled and I was awarded $31500.00 toward my cash value.

Once in a while the little guy wins, well, sorta of.

 

[haha]

About 6 years ago a class action suit was started and I submitted my paper work and forms and waited. I tried to find out form Mass Mutual what was going on but could never get any info.

I called for my cash value the other day and found out that the suit was settled and I was awarded $31500.00 toward my cash value.

Once in a while the little guy wins, well, sorta of.

Congrats, great outcome.

ha

 

[ERD50]

Wow, that's a big amount for a class action. The best I've gotten is a discount coupon to buy more stuff from the company that was sued. -ERD50

 

[Texas Proud]

Man that blows.... and I do not see it as a victory... but a reduced loss...

You paid 10 years at $6k plus... and then you said you kept paying... so you were in over $60K... add earnings to that and I would say over $120K easy...

Got $30K back... a pretty big loss IMO... and they got to keep the ill gotten gains...

 

[chinaco]

I would so a little analysis first.

But if the insurance is no longer needed, I would dump the policy. not sure of the tax implications.

If you need insurance, I would shop a .5M term policy and dump it.

Then tell Mass Mutual to KMA.

 

[73ss454]

Man that blows.... and I do not see it as a victory... but a reduced loss...

You paid 10 years at $6k plus... and then you said you kept paying... so you were in over $60K... add earnings to that and I would say over $120K easy...

Got $30K back... a pretty big loss IMO... and they got to keep the ill gotten gains...

No, the cash value is now 181K with the 31500 added. Most of the 6875 for the last few years has been covered by the dividends but I still have to go into my pocket every year for some of it.

I really don't need the policy any longer but the tax thing is a lot. I'd have to pay taxes on about 80K.

Now I could save the tax if I put it into an annuity but that's not going to happen. I'd rather pay the tax than pay another commission. I know you guys that think annuities are OK would think I'm nuts. But I got burnt buying this policy and paying a commission and it's not going to happen again.

 

[FinanceDude]

Now I could save the tax if I put it into an annuity but that's not going to happen. I'd rather pay the tax than pay another commission. I know you guys that think annuities are OK would think I'm nuts. But I got burnt buying this policy and paying a commission and it's not going to happen again.

My DW had a similar thing, with a "vanishing premium" WL account her dad took out on her when she was young. They sent her dad a letter saying he needed to continue to pay in AFTER the last premium was paid, due to "cincumstances beyond their control".

I told him no way, and hee ended up cashing out the policy. The company was Jackson National Life............

 

[FinanceDude]

No, the cash value is now 181K with the 31500 added. Most of the 6875 for the last few years has been covered by the dividends but I still have to go into my pocket every year for some of it.

I really don't need the policy any longer but the tax thing is a lot. I'd have to pay taxes on about 80K.

Now I could save the tax if I put it into an annuity but that's not going to happen. I'd rather pay the tax than pay another commission. I know you guys that think annuities are OK would think I'm nuts. But I got burnt buying this policy and paying a commission and it's not going to happen again.

BTW, it will never be a more tax-friendly account than it is now. Of course, you could borrow the cash value on a policy loan, and get the cash that way, if the interest rate is low...... Sounds like you don't need the money right now. I guess I would let it sit and let the dividends make the payments for now. With the infusion of $31,500, maybe the dividend will now pay ALL the premium...........

 

[73ss454]

BTW, it will never be a more tax-friendly account than it is now. Of course, you could borrow the cash value on a policy loan, and get the cash that way, if the interest rate is low...... Sounds like you don't need the money right now. I guess I would let it sit and let the dividends make the payments for now. With the infusion of $31,500, maybe the dividend will now pay ALL the premium...........

Yeah, I was thinking of pulling out the 31500 and paying off remaining debt's and being debt free. I don't think there will be a tax issue with this part of the money.

I'm waiting for the conformation letter from Mass Mutual to see what all the facts are.

Really up in the air about cashing it in, I think I'll wait to see how much of the premium I'll have to pay in Oct when it's due.

 

[Martha]

Man, I have one of those stinking policies from years ago. Maybe I should start a class action.

 

[73ss454]

Man, I have one of those stinking policies from years ago. Maybe I should start a class action.

Martha, I had 3 of these policies and all 3 ended the same way. The other 2 were with John Hancock and I ended up with shares of MFC and got rid of the policies because of the lies of the agents.

You should look to see if there are any class actions going on but I guess being a lawyer you already know that.

Seems this is a wide spread thing with the agents telling little fibs.

I knew I should have gotten annuities instead.

 

[FinanceDude]

Yeah, I was thinking of pulling out the 31500 and paying off remaining debt's and being debt free. I don't think there will be a tax issue with this part of the money.

I'm waiting for the conformation letter from Mass Mutual to see what all the facts are.

Really up in the air about cashing it in, I think I'll wait to see how much of the premium I'll have to pay in Oct when it's due.

I don't know,when I got my class action reward from the Ameriquest blow-up, they sent me a 1099-Misc, and I had to report it as income........

 

[FinanceDude]

I knew I should have gotten annuities instead.

NOW, you're talking..........