re: My Whole Life Ins. situation and advice request

To add to my above post, I'll reiterate that the best type of life insurance for 99% of the population out there is term. There are a few instances where a whole life policy would be appropriate (neither of them involve the use of the cash value component, though) but the vast, vast majority of the American population would be best served by purchasing a term policy and investing each month. Universal Life policies are pure shite. An agent selling a UL policy as a "permanent" policy is like a financial advisor selling an investment by saying "buy this mutual fund and only invest $25 a month. it'll always be worth something and would certainly never, ever decrease in value -- even if you decide to stop investing in it for a while. but be careful, if you always put only the $25 I'm advising you to invest each month, you may find a time when this investment won't be worth a dime so be sure to increase the amount you invest each month"

Customer: "but I thought you said I always only have to put $25 each month and I'll never lose money"

Advisor: "right, it'll always be there for you as long as you're investing $25 a month but it might not be worth anything one day if you only invest $25 a month".


It's the same damn thing. UL's are a scam - even more so than whole life - for 99% of those who buy them.