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I have a related question and thought I'd just continue this thread since there's some great info in the previous posts. My situation might also help anyone who is considering a VUL.

I bought (was sold) a $350k VUL in October 2002. I'm seriously regretting it now. My monthly payments are $510. Out of this, $115 goes toward the cost of insurance and another $40 goes to various expense charges. In other words, I'm paying $115 a month for insurance that I could get with a term policy for around $40 a month.

The worst part is that now that I realize my mistake, getting out of it will cost me the majority of the money that I already have in it. Of the $15,300 I've put into it (30 payments x $510), my accumulation value is around $9k (obviously this number varies based on fund performance). Unfortunately, my cash surrender value is only around $2600 because I have to pay surrender charges of over $6,300 (these charges start to gradually decrease beginning in year six of the policy).

So my question is, should I just cut my losses now and get out of it or continue to pay into it? I hate to lose that money but I also don't want to continue "throwing good money after bad". Any advice on how to make the best decision? Thanks!
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