Universal Life Insurance – good or bad?

[TemekuT]

I know nothing about universal life insurance. My elderly mom is being advised (pressured) by her WAMU broker to take the proceeds from a $100,000 CD that recently matured and buy a policy with some amount of nursing home coverage. She’s not bound for a nursing home anytime soon.

Can anyone help me with the pros (I don’t know of any) and cons of universal life? She has a good pension and sufficient assets and a trust and is in good health so I don’t see the need for the policy.

And yes, I know that WAMU is close to disaster. I’m still trying to get her out of WAMU.

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[(former)FormerSanDiegan]

I think the answer is obvious.

A few questions to ask yourself
1. What was the purpose of the money put into the CD in the first place ?
2. Is that still the purpose for this money ? If so, find an appropriate institution to provide a reasonable safe return on that money (might be WAMU, might not)
3. Does your mother need any kind of life insurance policy ? Does she need long-term care insurance ? If so, then research and find out what policy she might need and find the best coverage and rates from the Insurance providers out there.
4. What are the odds that her bank, WAMU with which it made sense to have a CD parked a while back, just so happens to offer the best insurance policy that she didn’t know she needed just when her CD matures ?

[(former)FormerSanDiegan]

I think the answer is obvious.

A few questions to ask yourself
1. What was the purpose of the money put into the CD in the first place ?
2. Is that still the purpose for this money ? If so, find an appropriate institution to provide a reasonable safe return on that money (might be WAMU, might not)
3. Does your mother need any kind of life insurance policy ? Does she need long-term care insurance ? If so, then research and find out what policy she might need and find the best coverage and rates from the Insurance providers out there.
4. What are the odds that her bank, WAMU with which it made sense to have a CD parked a while back, just so happens to offer the best insurance policy that she didn’t know she needed just when her CD matures ?

[(former)FormerSanDiegan]

I think the answer is obvious.

A few questions to ask yourself
1. What was the purpose of the money put into the CD in the first place ?
2. Is that still the purpose for this money ? If so, find an appropriate institution to provide a reasonable safe return on that money (might be WAMU, might not)
3. Does your mother need any kind of life insurance policy ? Does she need long-term care insurance ? If so, then research and find out what policy she might need and find the best coverage and rates from the Insurance providers out there.
4. What are the odds that her bank, WAMU with which it made sense to have a CD parked a while back, just so happens to offer the best insurance policy that she didn’t know she needed just when her CD matures ?

[(former)FormerSanDiegan]

I think the answer is obvious.

A few questions to ask yourself
1. What was the purpose of the money put into the CD in the first place ?
2. Is that still the purpose for this money ? If so, find an appropriate institution to provide a reasonable safe return on that money (might be WAMU, might not)
3. Does your mother need any kind of life insurance policy ? Does she need long-term care insurance ? If so, then research and find out what policy she might need and find the best coverage and rates from the Insurance providers out there.
4. What are the odds that her bank, WAMU with which it made sense to have a CD parked a while back, just so happens to offer the best insurance policy that she didn’t know she needed just when her CD matures ?

[(former)FormerSanDiegan]

I think the answer is obvious.

A few questions to ask yourself
1. What was the purpose of the money put into the CD in the first place ?
2. Is that still the purpose for this money ? If so, find an appropriate institution to provide a reasonable safe return on that money (might be WAMU, might not)
3. Does your mother need any kind of life insurance policy ? Does she need long-term care insurance ? If so, then research and find out what policy she might need and find the best coverage and rates from the Insurance providers out there.
4. What are the odds that her bank, WAMU with which it made sense to have a CD parked a while back, just so happens to offer the best insurance policy that she didn’t know she needed just when her CD matures ?

[Nachoman]

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.

[Nachoman]

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.

[Nachoman]

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.

[Nachoman]

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.

[Author]

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