Does anyone have advice about whole life insurance?

[SK in CV]

Did the broker happen to emphasize that he makes a commission in the neighborhood of 90% of the first year premiums and around 5% thereafter v. around 30 to 50% and 4% on a term product?

Take a good look at the numbers. In most cases the cash value remains lower than the premiums paid until somewhere around the 3rd or 4th year.

There are rare situations where variable products and 2nd to die policies are appropriate investments. But if you’re looking for vanilla insurance, buy insurance. If you’re looking for an investment, make an investment. Combining the two is good for the broker. Rarely for the insured.

[Raybyrnes]

SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.

[Raybyrnes]

SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.

[Raybyrnes]

SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.

[Raybyrnes]

SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.

[Raybyrnes]

SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.

[SK in CV]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

[/quote]

Yeah, you’re right. But having analyzed scores of whole life policies, both before and after clients have purchased them, I have almost always come to the same conclusion. They’re a better investment for the broker than they are the buyer. And there are almost always better alternatives.

[SK in CV]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

[/quote]

Yeah, you’re right. But having analyzed scores of whole life policies, both before and after clients have purchased them, I have almost always come to the same conclusion. They’re a better investment for the broker than they are the buyer. And there are almost always better alternatives.

[SK in CV]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

[/quote]

Yeah, you’re right. But having analyzed scores of whole life policies, both before and after clients have purchased them, I have almost always come to the same conclusion. They’re a better investment for the broker than they are the buyer. And there are almost always better alternatives.

[SK in CV]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

[/quote]

Yeah, you’re right. But having analyzed scores of whole life policies, both before and after clients have purchased them, I have almost always come to the same conclusion. They’re a better investment for the broker than they are the buyer. And there are almost always better alternatives.

[SK in CV]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

[/quote]

Yeah, you’re right. But having analyzed scores of whole life policies, both before and after clients have purchased them, I have almost always come to the same conclusion. They’re a better investment for the broker than they are the buyer. And there are almost always better alternatives.

[equalizer]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.[/quote]
Anyone can read Financial Planning Magazine and see that no one is offering 10% guaranteed rates. Last year there was a sharp drop in sales because benefits had dropped and guaranteed rates plummeted. So what now? The other person pushing VA’s on this blog was bragging about his Ferrari and all his clients were in Camry’s. But yeah, never ever question the commission. Its uncouth, its unpatriotic. Its treason.

Here’s a guarantee: stick with high rated managers from Oakmark, Fairholme, Vanguard Health, Matthews and Royce and you won’t have to search for tax havens.

[equalizer]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.[/quote]
Anyone can read Financial Planning Magazine and see that no one is offering 10% guaranteed rates. Last year there was a sharp drop in sales because benefits had dropped and guaranteed rates plummeted. So what now? The other person pushing VA’s on this blog was bragging about his Ferrari and all his clients were in Camry’s. But yeah, never ever question the commission. Its uncouth, its unpatriotic. Its treason.

Here’s a guarantee: stick with high rated managers from Oakmark, Fairholme, Vanguard Health, Matthews and Royce and you won’t have to search for tax havens.

[equalizer]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.[/quote]
Anyone can read Financial Planning Magazine and see that no one is offering 10% guaranteed rates. Last year there was a sharp drop in sales because benefits had dropped and guaranteed rates plummeted. So what now? The other person pushing VA’s on this blog was bragging about his Ferrari and all his clients were in Camry’s. But yeah, never ever question the commission. Its uncouth, its unpatriotic. Its treason.

Here’s a guarantee: stick with high rated managers from Oakmark, Fairholme, Vanguard Health, Matthews and Royce and you won’t have to search for tax havens.

[equalizer]

[quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.

Ask people who bought whole life policies that had guaranteed rates of return of 10% plus and are now plowing money into them how they feel about their policies and they will speak very highly of them.

Buy at the wrong time and in the wrong circumstances and like the housing market you may have a negative opinion.

Have kids who are heading to college and you can hide saving in a life insurance policy qualify for financial aid and potentially borrow from the policy and pay yourself back the interest if necessary. Have wealth that you are looking to pass along tax free and their are applications where life insurance makes sense.

Term life has become very cheap, very similar to renting but what happens if something all of a sudden drives this cost up in a few years.[/quote]
Anyone can read Financial Planning Magazine and see that no one is offering 10% guaranteed rates. Last year there was a sharp drop in sales because benefits had dropped and guaranteed rates plummeted. So what now? The other person pushing VA’s on this blog was bragging about his Ferrari and all his clients were in Camry’s. But yeah, never ever question the commission. Its uncouth, its unpatriotic. Its treason.

Here’s a guarantee: stick with high rated managers from Oakmark, Fairholme, Vanguard Health, Matthews and Royce and you won’t have to search for tax havens.

[Author]

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