Does anyone have advice about whole life insurance?

[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.

[scaredyclassic]

Agree generally but that one thought on hiding money from financial aid septa at colleges is an interesting thought. Not sure if they value whole life policies in aid pkgs . When I was young fin aid dinged us for a source of monies my parents thought was not attributable to them. Might pay to look onto that because s better aid pkg would be an astronomical return but probsbly still a bad investment, the college degree and the whole life

[scaredyclassic]

Agree generally but that one thought on hiding money from financial aid septa at colleges is an interesting thought. Not sure if they value whole life policies in aid pkgs . When I was young fin aid dinged us for a source of monies my parents thought was not attributable to them. Might pay to look onto that because s better aid pkg would be an astronomical return but probsbly still a bad investment, the college degree and the whole life

[scaredyclassic]

Agree generally but that one thought on hiding money from financial aid septa at colleges is an interesting thought. Not sure if they value whole life policies in aid pkgs . When I was young fin aid dinged us for a source of monies my parents thought was not attributable to them. Might pay to look onto that because s better aid pkg would be an astronomical return but probsbly still a bad investment, the college degree and the whole life

[scaredyclassic]

Agree generally but that one thought on hiding money from financial aid septa at colleges is an interesting thought. Not sure if they value whole life policies in aid pkgs . When I was young fin aid dinged us for a source of monies my parents thought was not attributable to them. Might pay to look onto that because s better aid pkg would be an astronomical return but probsbly still a bad investment, the college degree and the whole life

[scaredyclassic]

Agree generally but that one thought on hiding money from financial aid septa at colleges is an interesting thought. Not sure if they value whole life policies in aid pkgs . When I was young fin aid dinged us for a source of monies my parents thought was not attributable to them. Might pay to look onto that because s better aid pkg would be an astronomical return but probsbly still a bad investment, the college degree and the whole life

[DataAgent]

Life insurance dividends are tax-free because they are considered a “return of premium”. In other words, the insurance company is returning a small fraction of the premium money you paid them back to you. Big deal. Buy term and spend less.

[DataAgent]

Life insurance dividends are tax-free because they are considered a “return of premium”. In other words, the insurance company is returning a small fraction of the premium money you paid them back to you. Big deal. Buy term and spend less.

[DataAgent]

Life insurance dividends are tax-free because they are considered a “return of premium”. In other words, the insurance company is returning a small fraction of the premium money you paid them back to you. Big deal. Buy term and spend less.

[DataAgent]

Life insurance dividends are tax-free because they are considered a “return of premium”. In other words, the insurance company is returning a small fraction of the premium money you paid them back to you. Big deal. Buy term and spend less.

[DataAgent]

Life insurance dividends are tax-free because they are considered a “return of premium”. In other words, the insurance company is returning a small fraction of the premium money you paid them back to you. Big deal. Buy term and spend less.

[ljinvestor]

Yes, insurance doesn’t work well if you combine the risk need & investment. The more death benefit you purchase, the higher the cost of insurance and expenses are which lower any return in the future.

Insurance as an investment is typically only good for two groups. Younger 30-50yo with plenty of extra income that are already well diversified and have an approx 20yr timeline before taking any loans/withdrawals, or older individuals 60-80yo wanting to pass on legacy assets income tax free and then ROR on death benefit should be the focus.

If you don’t have lots of extra income each year then listen to a majority of the piggs and purchase a 20-30yr term to take care of the risk. If you are looking at it as another investment opportunity then buy the lowest death benefit for whatever amount you invest that still qualifies it as a life insurance contract with tax benefits (non mec) and use a high early cash value product in case you need to get to funds early. Lower death benefits and high early cash value mean less commission for agent

Besides NWML, I believe that New York Life, Mass Mutual, John Hancock, and Metlife are all considered strong companies with good whole life products.

[ljinvestor]

Yes, insurance doesn’t work well if you combine the risk need & investment. The more death benefit you purchase, the higher the cost of insurance and expenses are which lower any return in the future.

Insurance as an investment is typically only good for two groups. Younger 30-50yo with plenty of extra income that are already well diversified and have an approx 20yr timeline before taking any loans/withdrawals, or older individuals 60-80yo wanting to pass on legacy assets income tax free and then ROR on death benefit should be the focus.

If you don’t have lots of extra income each year then listen to a majority of the piggs and purchase a 20-30yr term to take care of the risk. If you are looking at it as another investment opportunity then buy the lowest death benefit for whatever amount you invest that still qualifies it as a life insurance contract with tax benefits (non mec) and use a high early cash value product in case you need to get to funds early. Lower death benefits and high early cash value mean less commission for agent

Besides NWML, I believe that New York Life, Mass Mutual, John Hancock, and Metlife are all considered strong companies with good whole life products.

[ljinvestor]

Yes, insurance doesn’t work well if you combine the risk need & investment. The more death benefit you purchase, the higher the cost of insurance and expenses are which lower any return in the future.

Insurance as an investment is typically only good for two groups. Younger 30-50yo with plenty of extra income that are already well diversified and have an approx 20yr timeline before taking any loans/withdrawals, or older individuals 60-80yo wanting to pass on legacy assets income tax free and then ROR on death benefit should be the focus.

If you don’t have lots of extra income each year then listen to a majority of the piggs and purchase a 20-30yr term to take care of the risk. If you are looking at it as another investment opportunity then buy the lowest death benefit for whatever amount you invest that still qualifies it as a life insurance contract with tax benefits (non mec) and use a high early cash value product in case you need to get to funds early. Lower death benefits and high early cash value mean less commission for agent

Besides NWML, I believe that New York Life, Mass Mutual, John Hancock, and Metlife are all considered strong companies with good whole life products.

[ljinvestor]

Yes, insurance doesn’t work well if you combine the risk need & investment. The more death benefit you purchase, the higher the cost of insurance and expenses are which lower any return in the future.

Insurance as an investment is typically only good for two groups. Younger 30-50yo with plenty of extra income that are already well diversified and have an approx 20yr timeline before taking any loans/withdrawals, or older individuals 60-80yo wanting to pass on legacy assets income tax free and then ROR on death benefit should be the focus.

If you don’t have lots of extra income each year then listen to a majority of the piggs and purchase a 20-30yr term to take care of the risk. If you are looking at it as another investment opportunity then buy the lowest death benefit for whatever amount you invest that still qualifies it as a life insurance contract with tax benefits (non mec) and use a high early cash value product in case you need to get to funds early. Lower death benefits and high early cash value mean less commission for agent

Besides NWML, I believe that New York Life, Mass Mutual, John Hancock, and Metlife are all considered strong companies with good whole life products.

[Author]

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