Whole Life Insurance??

Whole Life is a good way to have death benefit coverage while having a supplemental retirement plan. The key is getting a whole life policy with the right company. Some are excellent. Some are not.

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Whole Life is a good way to have death benefit coverage while having a supplemental retirement plan. The key is getting a whole life policy with the right company. Some are excellent. Some are not.

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You would be better off to have a term policy while investing in Mutual Funds.

Try to find a single financal planner that is not selling whole life who thinks it is a good investment. Read the fine print, you die, they keep your investment. Buy term, invest your savings, My wife was an insurance agent, the "your children could get ill, and not be able to get insurance" was the scam she hated most.

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Read the fine print, you die, they keep your investment.

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This might be true with some whole life policies. However, it is certainly not the case industry wide.

Our whole life policies normally end up being worth 4 to 5 times the amount invested after 20-30 yrs and it has an increasing death benefit over time.

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you should have enough money saved for you or your spouse to survive on in case something were to happen to one of you.

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TD pension plan!

I am in the market for a 30yr term right now. Best I have found so far(only shopped two places) is $157/month for $750k in coverage. Is this in the right ball park?

bayoudude, look around. should be able to find much cheaper with reputable companies. dont want to post names on here if it isnt legal.

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You would be better off to have a term policy while investing in Mutual Funds.

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This by a long shot from an investment prespective.

Just for a basic example take 20 pay whole life for example.

The investment you put in will never equal the amount it pays out. If someone were to die in the first 10-20 years it is actually a far greater investment than any mutual fund, or guaranteed return. Once the policy matures the cash value won't show the same growth a fixed investment vehicle (such as an annuity would produce), but the difference in the two is covered by the death benefit.

There are different types of whole life. One has an accumulated death benefit, so as the earlier poster mentioned, if the policy is for 150k and it has a 100k cash value at death you would get the 250k total (tax free) (Paid up additions is what is referred to as). The cheaper form of whole life only pays a level death benefit and you forfeit the cash value, but it keeps lower premiums.

I usually sell a lot of Universal life policies. I like the variable aspect of them (you can increase or decrease your premiums). Non-guaranteed rate of return is around 4% right now, guaranteed is only 3% currently. I like to overfund universal plans for people with preferred/super preferred ratings that can include educational funds. Basically after about 5 years a UL plan can be used as a savings account that generates over 3% interest. You can put money in or take money out as long as you stay below M.E.C (modified endowment contract) standards.

I'll stop for now cliff notes version is there is a reason over 90% of America's wealthy have whole life policies on themselves. I sell mainly term to young couples that need to focus on maxing out their 401(k)s, but Universal Life can be an excellent tool as a fixed vehicle to support one's retirement plan. We certainly didn't have any clients lose 30-50% of their retirement in our products over the last 5 years.