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Is Secret Cash Blueprint 2.0 a scam?

My dad purchased a "whole life insurance" for me back in 1988 for $400. Is this a scam, or can we "cash out"?

  • My Dad purchased a "whole life insurance" for me back in 88' when I was 7 for $400. Supposedly it is for $20,000. After I turned a certain age (I forgot, I think 25) we were supposed to be able to "cash out" I totally forgot about this until recently when my Dad was going through some old papers. To me now, this sounds like a total scam. I looked up the company and they exist and seem legit, but the whole premise seems ridiculous to me. A one time $400 fee and nothing else for a "whole life insurance" policy? Common sense tells me this is a scam. I have looked into life insurance before, and you have to pay several premiums during the lifetime of the policy. But my Dad swears this is legit. Is there any legitimacy worth pursuing in this, or should I just forget about this?

  • Answer:

    The policy owner - dad - is the only one who can cash it out. It's a prepaid policy, and not unreasonable - after all 18 years of interest on your $400 is over $2,000 in interest - that the insurance company gets to keep. The catch is, you only get the $20,000 if you die. If you cash out, likely you're getting $400.

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If you die your beneficiary gets the $20,000. If you cash in the policy you get the cash value plus any dividends if there are any minus any loans if there are any. The owner of the policy would be able to cash in the policy. You should check on the policy because if your dad is the owner it would be easier to either cash in the policy now or transfer the ownership to yourself before your dad passes away. Call the insurance company and get some info.

You can usually cash a policy out for its "Cash Value"... NOT for the face amount. The 20,000 face amount is the amount that would be paid if you were to die. The cash value is probably much less. Check the policy or call the company and give them a policy number to find out what your current cash value is. Trust me, it won't be $20,000. There are many single premium pay policies out there, so that part of it sounds reasonable. I am betting that the cash value, however, could actually be less than the initial $400 or not much more than that. And yes, as mentioned already... if your dad is the "owner" of the policy, he is the only one they will give information to or money to from your policy, unless he transfers ownership to you.

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