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Elder statesmen of the OT, do you recommend a whole life insurance policy?
Posted on 11/25/15 at 6:43 am
Posted on 11/25/15 at 6:43 am
My boss of age 55 says he now regrets not investing in a whole life insurance policy when he was younger. His premiums are around $2k annually for about $500k. He also said he expected to be debt free by 60 but that won't happen. Term insurance is cheap for a 20-30 yr old, but is it smarter taking out a whole life for the younger bucks? TIA.
This post was edited on 11/25/15 at 8:58 am
18
Posted on 11/25/15 at 6:45 am to Rhino5
You could just get creamated. A lot of people are skipping the big wake these days.
Caskets are a huge waste of money. So are plots. So are funerals.
Caskets are a huge waste of money. So are plots. So are funerals.
Posted on 11/25/15 at 6:46 am to Rhino5
Term policy for me. Invest the savings difference by going with term vs. whole life.
Plus, I don't want to use an insurance policy, loaded with fees and restrictions as one of my primary financial vehicles.
Plus, I don't want to use an insurance policy, loaded with fees and restrictions as one of my primary financial vehicles.
Posted on 11/25/15 at 6:48 am to Rhino5
There are several camps on this.
They say buy term & invest the difference. But nobody actually does this. Except for the OT of course.
Theoretically, when term life gets expensive, you cancel it because you've built your estate and the kids are self supporting. No need to carry the family through the loss of your income.
But the truth is, most life insurance that pays off is whole life.
I regret cashing mine out years ago but it's water under the bridge.
They say buy term & invest the difference. But nobody actually does this. Except for the OT of course.
Theoretically, when term life gets expensive, you cancel it because you've built your estate and the kids are self supporting. No need to carry the family through the loss of your income.
But the truth is, most life insurance that pays off is whole life.
I regret cashing mine out years ago but it's water under the bridge.
Posted on 11/25/15 at 6:48 am to Rhino5
Head on over to Money talk board for better responses.
I only have term. I will also be debt free by age 50 with substantial savings/ investments.
Insurance is not an investment. Maybe he's not debt free because of the cost of the insurance and other similar decisions.
I only have term. I will also be debt free by age 50 with substantial savings/ investments.
Insurance is not an investment. Maybe he's not debt free because of the cost of the insurance and other similar decisions.
This post was edited on 11/25/15 at 6:49 am
Posted on 11/25/15 at 6:50 am to Rhino5
I've been wanting to learn the pros and cons of both types of life insurances.
Hope somebody can provide us that don't know with some details.
Thanks
Hope somebody can provide us that don't know with some details.
Thanks
Posted on 11/25/15 at 6:53 am to Rhino5
Term. You can usually renew it halfway through.
Posted on 11/25/15 at 7:02 am to Rhino5
WHAT WOULD DAVE DO ??
Posted on 11/25/15 at 7:04 am to Bullfrog
quote:Very true, but if your company has a 401K program you can have that difference taken out of your paycheck.
They say buy term & invest the difference. But nobody actually does this. Except for the OT of course
Posted on 11/25/15 at 7:20 am to Rhino5
I have both as recommended by people I trust in the business. The market is to stupid for me right not so, i have a guaranteed whole life policy that i pay up in 20yrs. Cash return on it isn't the best, but its projected to be about 3-4% i think. Its enough to pay off a funeral and any outstanding bills if needed. Can always cash it out as well if i need to.... I have a good chunk in term to cover mortgage (i know the OT ballers don't have mortgages), salary and to help the wife out so she doesn't go blowing dudes to help her pay off the house.
I have the same on her....
like stated in previous post there are 2 camps.... ol dave and then most other people. do your research and buy what you are comfortable with, don't fool yourself and think your family doesn't need it.
I will say this.... buy the whole life as early as you can, its way cheaper. I kick myself for not doing this shite sooner
I have the same on her....
like stated in previous post there are 2 camps.... ol dave and then most other people. do your research and buy what you are comfortable with, don't fool yourself and think your family doesn't need it.
I will say this.... buy the whole life as early as you can, its way cheaper. I kick myself for not doing this shite sooner
This post was edited on 11/25/15 at 7:22 am
Posted on 11/25/15 at 7:24 am to HebertFest08
Life insurance is like toilet paper.
Pointless until you need it.
Pointless until you need it.
This post was edited on 11/25/15 at 7:25 am
Posted on 11/25/15 at 7:33 am to Rhino5
You should talk to a financial advisor who can run numbers for you.
ETA: certain whole life policies allow you to pay higher than the amount owed, earn interest, and take the money out after a certain age tax free. It's just another way of retirement planning. Again, talk to a financial advisor.
ETA: certain whole life policies allow you to pay higher than the amount owed, earn interest, and take the money out after a certain age tax free. It's just another way of retirement planning. Again, talk to a financial advisor.
This post was edited on 11/25/15 at 7:36 am
Posted on 11/25/15 at 7:37 am to Rhino5
A whole life insurance policy is a horrible idea. Term in your only option that makes any financial sense.
Posted on 11/25/15 at 7:45 am to Rhino5
Financially there is no reason to buy whole life over term life if you're investing the difference. However, investing that difference is key.
I liken it to people who are married with moderate incomes, yet they file "single and none" so they can get a nice tax refund. If the only way you can save money is having the IRS to hold on to an extra $3,000 for you throughout the year, I guess it is better than nothing, but it obviously isn't the prudent financial decision.
I liken it to people who are married with moderate incomes, yet they file "single and none" so they can get a nice tax refund. If the only way you can save money is having the IRS to hold on to an extra $3,000 for you throughout the year, I guess it is better than nothing, but it obviously isn't the prudent financial decision.
Posted on 11/25/15 at 7:54 am to Rhino5
I'd suggest the money board. I have a whole policy but most of my life insurance is term. I think it's a "safe" investment, but you don't get much bang for your buck as say a solid mutual fund overtime.
Posted on 11/25/15 at 7:56 am to Rhino5
NO NO NO NEVER-
an this is a money board question
an this is a money board question
Posted on 11/25/15 at 8:00 am to Rhino5
It's a scam. Get a 30 year term life policy, and then put the extra money you'd be throwing away into a whole life policy into a good investment fund, and after 30 years you'll have real money in the bank for your loved ones.
Posted on 11/25/15 at 8:23 am to Rhino5
Yes. Bought when in my 30s and 40s. Use cash value for investmemts.
Posted on 11/25/15 at 8:25 am to Rhino5
My kids have whole, don't remember why that was recommended for them
Posted on 11/25/15 at 8:40 am to BestBanker
Same here. I bought a whole life policy in my early 30s, young and healthy, and locked in the best rate you can get (A+).
Rates of return on the cash value are about 6-7%. I pull a little cash out for other investments tax-free.
Rates of return on the cash value are about 6-7%. I pull a little cash out for other investments tax-free.
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