Universal Life Insurance – good or bad?

[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.

[NYCLurker]

As an employee benefits manager, I would agree 100% with Nachoman.

Individual universal life policies have limited use these days, and are generally advantageous only to those who NEED life insurance protection AND are trying to maximize income tax savings through certain specialized investment vehicles, e.g. the very highly compensated, maxing out 401K, etc.

All others beware.

[NYCLurker]

As an employee benefits manager, I would agree 100% with Nachoman.

Individual universal life policies have limited use these days, and are generally advantageous only to those who NEED life insurance protection AND are trying to maximize income tax savings through certain specialized investment vehicles, e.g. the very highly compensated, maxing out 401K, etc.

All others beware.

[NYCLurker]

As an employee benefits manager, I would agree 100% with Nachoman.

Individual universal life policies have limited use these days, and are generally advantageous only to those who NEED life insurance protection AND are trying to maximize income tax savings through certain specialized investment vehicles, e.g. the very highly compensated, maxing out 401K, etc.

All others beware.

[NYCLurker]

As an employee benefits manager, I would agree 100% with Nachoman.

Individual universal life policies have limited use these days, and are generally advantageous only to those who NEED life insurance protection AND are trying to maximize income tax savings through certain specialized investment vehicles, e.g. the very highly compensated, maxing out 401K, etc.

All others beware.

[NYCLurker]

As an employee benefits manager, I would agree 100% with Nachoman.

Individual universal life policies have limited use these days, and are generally advantageous only to those who NEED life insurance protection AND are trying to maximize income tax savings through certain specialized investment vehicles, e.g. the very highly compensated, maxing out 401K, etc.

All others beware.

[zk]

I don’t know anything about universal life. But I can without bias recommend Rich’s partner John Simon. I bought some term life insurance through him. He is very knowledgable, smart, nice and, like Rich said, not at all “salesy.” (How about a piggs dictionary. We’ll start with salesy, whackage and threat-o-graph.)

[zk]

I don’t know anything about universal life. But I can without bias recommend Rich’s partner John Simon. I bought some term life insurance through him. He is very knowledgable, smart, nice and, like Rich said, not at all “salesy.” (How about a piggs dictionary. We’ll start with salesy, whackage and threat-o-graph.)

[zk]

I don’t know anything about universal life. But I can without bias recommend Rich’s partner John Simon. I bought some term life insurance through him. He is very knowledgable, smart, nice and, like Rich said, not at all “salesy.” (How about a piggs dictionary. We’ll start with salesy, whackage and threat-o-graph.)

[zk]

I don’t know anything about universal life. But I can without bias recommend Rich’s partner John Simon. I bought some term life insurance through him. He is very knowledgable, smart, nice and, like Rich said, not at all “salesy.” (How about a piggs dictionary. We’ll start with salesy, whackage and threat-o-graph.)

[zk]

I don’t know anything about universal life. But I can without bias recommend Rich’s partner John Simon. I bought some term life insurance through him. He is very knowledgable, smart, nice and, like Rich said, not at all “salesy.” (How about a piggs dictionary. We’ll start with salesy, whackage and threat-o-graph.)

[pk92108]

I am not in the financial field, but have been told by many who are to keep your insurance and investments separate..Go for term life, which is the best bang for the buck and then pick your investments….

[pk92108]

I am not in the financial field, but have been told by many who are to keep your insurance and investments separate..Go for term life, which is the best bang for the buck and then pick your investments….

[pk92108]

I am not in the financial field, but have been told by many who are to keep your insurance and investments separate..Go for term life, which is the best bang for the buck and then pick your investments….

[pk92108]

I am not in the financial field, but have been told by many who are to keep your insurance and investments separate..Go for term life, which is the best bang for the buck and then pick your investments….

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