re: Elder statesmen of the OT, do you recommend a whole life insurance policy?

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would take 3 weeks to get this many responses over there.

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This question gets asked weekly on Money Board

The real question is who do you want answering your question?

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My kids have whole, don't remember why that was recommended for them

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I don't think you can buy term on someone under 18

I have term and universal. I had the universal life policy solved for zero cash value at age 100, consequently a life time term policy that never needs to be renewed at a higher cost of insurance. I adjust every year the amount I put in. Frankly I have put in extra as it isn't paying a lot, but has been averaging 6-8% in this interest rate climate. You have to look at the cost of insurance. It should be spelled out someplace in a disclosure. If the agent doesn't want to solve for zero cash value at age 100, this tells me they don't understand. If they don't want to break out the actual cost of insurance inside a universal policy, they either don't know, or don't want you to know.

I guess I could live longer than 100, for I doubt this for several reasons. And in any event, I can see myself lowering the face amount, and taking out extra cash. I think if it's a loan it's tax free, and I think if it's a withdrawal, it's FIFO, but not entirely sure about that.

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there are two purposes I can think of for which whole life makes sense. The first is if you expect to have liquidity issues at death, i.e. you have substantial assets that cannot be converted to cash efficiently or without significant impairment in value.

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You can add uninsurability at some point. Or the fear of it. Like with a pre-diabetic. etc.

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Life insurance is like toilet paper. Pointless until you need it.

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YOU will never need it. Its for your spouse or loved ones to hopefully pay off your bills after your loss of income.

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YOU will never need it.

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Not true. There is at least one company that I know of that has a living benefit rider that allows you to access the death benefit under certain health circumstances on their term policy.

As for cash value life (whole, universal, variable), I've only found 2 instances where it is the best product available:

1. you want/need long-term care coverage and either don't qualify or it's cost-prohibitive. (there are several cash value products that have LTC riders)

2. you are very wealthy and want to move assets out of your estate to avoid/minimize estate taxes.

I have term, label it key man and write the premiums out of my business.

Good or bad I don't know since I'm an s corp it probably doesn't matter.

I prefer other investments to whole life and I don't understand them enough, nor try to, to be willing to buy.