Help! Cut my losses with variable investment life insurance policy or not?

[diamondinterlude]

The VL product is tax-deferred (you don't pay taxes on any gains until you surrender the contract)... it can be tax-free if you keep it until you die but the big disadvantage (beyond high fees and paying for life insurance coverage that you don't need) is that if you surrender that gains are taxed at ordinary rates and not preferential capital gains tax rates.

For the mutual fund that you wanted the dividends are taxed when received but at preferential rates, and when you sell you are taxed on the gain but again, at preferential rates as long as you have held the lot for more than a year. The mutual fund that you desired was probably more suitable but not as lucrative for the sale rep which is why they steered you into the variable life contract.

Scum buckets.

Thank you for this -- it's reassuring to hear on some level even though AXA seems to be digging in their heels and refusing to admit that my claims have merit. I will continue to pursue my claim and hopefully something will change. Since I've filed a complaint with the state regulatory agency already, should I still try to contact them to speak to them directly?

 

[pb4uski]

Unless you just sent it recently, I would call to follow up to see if they received your complaint, where it stands and if they need any more information from you and see what they have to say.

 

[diamondinterlude]

Would like to post a quick update here for everyone who assisted me and also for future generations of people who may come across the thread. After a long process (several months), AXA finally offered to settle the dispute by canceling my policy and refunding all premiums paid. To those who may find themselves in a similar situation, my advice to you is to gather as much written evidence that you can find about what the broker told you. Do research on misrepresentation, unsuitability and failure to supervise and above all, don't give up. File a complaint with FINRA, file a complaint with your state insurance regulator, file a complaint with the Better Business Bureau, file a complaint with the CFPB, write to the CEO, write to the media, and press your case. I actually believe that it was the BBB complaint that got the job done, which I was a little surprised about. They are depending on your going away, but don't let them wear you out. If one complaint doesn't seem to be going anywhere, file another one and eventually they may decide you are not worth the trouble.

 

[Sunset]

Thanks for the update, it's nice to have closure on issues

 

[samclem]

After a long process (several months), AXA finally offered to settle the dispute by canceling my policy and refunding all premiums paid.

Wow, congratulations. You must be have been a real [-]PITA[/-] thorn in their side. It's great to hear--thanks for following up with this post.

 

[pb4uski]

Wow, congratulations. You must be have been a real [-]PITA[/-] thorn in their side. It's great to hear--thanks for following up with this post.

+1 For them to refund all premiums you paid is a huge win for you... they much have figured that the agent really screwed the pooch in the sale. Congratulations!