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Bama98 
Alabama Fan
Houston
Member since Oct 2011
290 posts
| Custom Variable vs Term Life Insurance Opinions (Posted on 10/31/12 at 12:51 pm)
we got hit up by a coworker's finance guy about life insurance policies and the push toward custom variable vs "renting" the term as the rep put it. What say ye?
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GoCrazyAuburn 
Auburn Fan
Member since Feb 2010
9242 posts
 Online
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 10/31/12 at 2:08 pm to Bama98)
quote:
custom variable
Not a fan of these. IMO they defeat the purpose of doing permanent insurance. Who did the guy work if you don't mind me asking.
He is accurate with the renting the term though. It is a temporary fix to the costs of dying.
This post was edited on 10/31 at 2:27 pm
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TheHiddenFlask 
Clemson Fan
The Welsh red light district
Member since Jul 2008
16420 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 10/31/12 at 2:40 pm to Bama98)
quote:
custom
quote:
variable
I know nothing about this insurance, but I know enough about financial products to know that they most likely translate into:
Expensive
and
Egregiously Expensive
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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9242 posts
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| re: Custom Variable vs Term Life Insurance Opinions (Posted on 10/31/12 at 2:44 pm to TheHiddenFlask)
Can be. Lots of times however they are pretty cheap as it allows you to greatly adjust your premiums (usually causes bad underfunding a d lapsing of the policy or huge step up in premium down the road).
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BestBanker 
LSU Fan
stuck in a moment
Member since Nov 2011
1906 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/1/12 at 9:04 am to Bama98)
Life insurance is life insuance, and investing is investing. Keep the two separate.
The type of policy to own is an indiividual, case by case consideration.
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edwardryan295
Member since Nov 2012
1 post
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/8/12 at 10:47 pm to BestBanker)
Life insurance is and investment are two different things.Life insurance will act as an Asset in your bad time. If whole life insurance is costing too much find a low cost term life insurance. Which will act as an asset for you. http://finance4founders.com/things-you-should-know-low-cost-term-life-insurance.html
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southernelite
LSU Fan
Lake Charles
Member since Sep 2009
34003 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/9/12 at 12:10 am to TheHiddenFlask)
Custom variables are extremely
heavy on loading. Just took a test on this today.
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southernelite
LSU Fan
Lake Charles
Member since Sep 2009
34003 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/9/12 at 12:12 am to TheHiddenFlask)
(no message)
This post was edited on 11/9 at 12:13 am
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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
12901 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/9/12 at 9:08 am to Bama98)
What is the purpose of life insurance? The only purpose that matters is to provide a death benefit. Everything else is just packaging to make it more appealing. If life insurance was intended to be anti-poverty in my old age insurance it would be called that.
I got news for you about renting insurance, it is unavoidable. Do you consider owning your health insurance, auto insurance or homeowners insurance? No, and you don't own your life insurance. You own a separate investment that historically performs very poorly compared to alternatives.
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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9242 posts
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| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/9/12 at 9:30 am to Poodlebrain)
quote:
I got news for you about renting insurance, it is unavoidable. Do you consider owning your health insurance, auto insurance or homeowners insurance? No, and you don't own your life insurance. You own a separate investment that historically performs very poorly compared to alternatives.
Let me preface by saying I can't stand custom variable policies, but...
Comparing permanent life insurance to health, auto, homeowners is dishonest at best. Term insurance, yes, they are similar.
As far as the investment success is concerned, what do you consider performing poorly?
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CoolHand 
USA Fan
Member since Dec 2011
1457 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/9/12 at 10:06 am to GoCrazyAuburn)
:andherewegomeme:
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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9242 posts
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| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/9/12 at 10:10 am to CoolHand)
Truth.
I may need to just avoid this thread today so as to not clutter up my Friday
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jdg91878 
New Orleans Saints Fan
Do overs+Opinion poll politics =MNC
Member since Oct 2010
3742 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/10/12 at 11:43 am to BestBanker)
quote:
Life insurance is life insuance, and investing is investing. Keep the two separate. The type of policy to own is an indiividual, case by case consideration.
Right answer. Your coworkers finance guy who used the word "rent" is an idiot. Life insurance is death protection, not an investment. Ask him how he feels about "renting" his auto insurance or how his investments in his homeowners insurance policy are performing? Any form of whole life is shit; that's a fact. Every advisor not paid promoting a specific product suggests term insurance and investing in a separate forum like Roth IRAs, 401k, etc.
This post was edited on 11/10 at 11:48 am
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Lonestar
LSU Fan
Member since Nov 2006
646 posts
| re: Custom Variable vs Term Life Insurance Opinions (Posted on 11/11/12 at 11:51 am to jdg91878)
you sound like a Dave Ramsey robot clone. Your ignorance in the above post knows no bounds and you are factually incorrect. This guys situation is different that is why there are many products. There is no one size fits all approach (like dave says)
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