Run run run… far away. Universal and whole life insurance policies advertise themselves to be good investments as well as a life insurance policy, by contributing a portion of your monthly fee to a cash value that is “invested” and a portion to pay for life insurance. In reality, the insanely high fees negate any growth from the cash value portion of the policy, and the insurance portion suckers you into paying for insurance well past when you need it.
These are peddled quite often because they result in nice high comission rates for the brokers…. which means the insurance companies are making a boatload from the consumer.
The only thing you need to ask yourself is this: what is the purpose of insurance? It’s to help recover from a catastrophic event.
At your mom’s age, does she: have anyone that need her financial support? My guess is no. Life insurance is usually only needed between 25-55 yrs old, when you might have young kids who are dependent on your income. Once the kids have flown the coop and your retirement savings are set, insurance isn’t needed.
Tell your mom to refuse the UL and never talk to that broker again, he’s trying to milk your mom for her hard earned cash.
