- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Whole Life Investments. Pro's and Cons?
Posted on 9/2/09 at 12:19 pm
Posted on 9/2/09 at 12:19 pm
3
Posted on 9/2/09 at 12:34 pm to Tiger Ryno
just cons.
Posted on 9/2/09 at 2:12 pm to Cash
PROS
Life Insurance agents love it. They pimp it out the hardest because it makes THEM the most money.
CONS
Everything else about it.
Life Insurance agents love it. They pimp it out the hardest because it makes THEM the most money.
CONS
Everything else about it.
Posted on 9/2/09 at 5:04 pm to Newbomb Turk
99% of term policies never pay out. Just sayin.
Although there is a place for term and a place for whole life (and the vast bulk of most people's needs should be covered with term life), just know that you and your heirs will likely never see the money again that you put into term life.
Anyone that is overly anti-wholel life is a glaring signal to me that the individual is obviously not well educated on the subject of life insurance and is merely repeating what they have heard from others. Term and whole life both serve their purpose and both should be used in any insurance portfolio to cover the needs of the individual whose life the insurance covers.
I just think it's comical when people are adament about term insurance when in the end, they will have basically bought something that never gets used and hence wasted money.
Although there is a place for term and a place for whole life (and the vast bulk of most people's needs should be covered with term life), just know that you and your heirs will likely never see the money again that you put into term life.
Anyone that is overly anti-wholel life is a glaring signal to me that the individual is obviously not well educated on the subject of life insurance and is merely repeating what they have heard from others. Term and whole life both serve their purpose and both should be used in any insurance portfolio to cover the needs of the individual whose life the insurance covers.
I just think it's comical when people are adament about term insurance when in the end, they will have basically bought something that never gets used and hence wasted money.
This post was edited on 9/2/09 at 5:07 pm
Posted on 9/2/09 at 5:09 pm to JPLSU1981
Well you didn't really explain what it is good for. Drop some knowledge.
Posted on 9/2/09 at 5:12 pm to Tiger Ryno
quote:
Pro's and Cons?
PROS
You (or your heirs) will get the money back at some point, no matter what.
Great way to hide and/or transfer assets you don't intend to use in your lifetime to your heirs. Life insurance proceeds are federally income tax free.
You have a cash value. You're obviously not earning as much as you would in some other investment, but life insurance should not be used as an "investment vehicle" per se to begin with.
If you get it while you're young, it's cheap and you've got it your whole life and it can never be taken away and/or the premium raised.
CONS
Expensive (although this con is semi-negated when you take into account the premiums aren't being flushed down the toilet like term ... you (or your heirs) will eventually get this money back. Nonetheless, the premiums on whole are going to be higher than for the same amount of term, obviously.)
Term is basically renting, and whole is buying. People make it out to be very complicated, but that's the long and short of it ... renting vs buying. If you've got the mula, then there's no question you should get as much whole life as possible. If you don't have the dough, then you have no choice but to go with term.
This post was edited on 9/2/09 at 5:19 pm
Posted on 9/2/09 at 5:19 pm to JPLSU1981
What level of $$ do you need to make it useful? Wouldn't you just end up getting hit on the estate tax?
Posted on 9/2/09 at 6:07 pm to JPLSU1981
quote:
just know that you and your heirs will likely never see the money again that you put into term life
They can dry their tears about this with the tens of thousands of dollars accumulated investing the savings of term over "whole life".
quote:
I just think it's comical when people are adament about term insurance when in the end, they will have basically bought something that never gets used and hence wasted money.
As opposed to buying insurance AND getting a really crappy investment to go with it?
Posted on 9/2/09 at 6:09 pm to JPLSU1981
quote:
PROS
You (or your heirs) will get the money back at some point, no matter what.
Great way to hide and/or transfer assets you don't intend to use in your lifetime to your heirs. Life insurance proceeds are federally income tax free.
You have a cash value. You're obviously not earning as much as you would in some other investment, but life insurance should not be used as an "investment vehicle" per se to begin with.
If you get it while you're young, it's cheap and you've got it your whole life and it can never be taken away and/or the premium raised.
CONS
Expensive (although this con is semi-negated when you take into account the premiums aren't being flushed down the toilet like term ... you (or your heirs) will eventually get this money back. Nonetheless, the premiums on whole are going to be higher than for the same amount of term, obviously.)
Term is basically renting, and whole is buying. People make it out to be very complicated, but that's the long and short of it ... renting vs buying. If you've got the mula, then there's no question you should get as much whole life as possible. If you don't have the dough, then you have no choice but to go with term.
If I have a whole life policy with a "cash value" of 100K and a "death benefit" of 100K...when I die will my relatives get 100K or 200K?
Posted on 9/2/09 at 8:19 pm to JPLSU1981
JPLSU1981,
Can we do a simple example to help some of the skeptics with the math on term versus whole life? I am a 30 year old male. My health category would be the 2nd best tier (stupid BMI).
What would my monthly premium be for term versus whole -- approximately of course? Also, how quickly would the whole life insurance policy accumulate value, so that factor can be included in the analysis? Any other numbers that need to be included in the evaluation?
Thanks...
Can we do a simple example to help some of the skeptics with the math on term versus whole life? I am a 30 year old male. My health category would be the 2nd best tier (stupid BMI).
What would my monthly premium be for term versus whole -- approximately of course? Also, how quickly would the whole life insurance policy accumulate value, so that factor can be included in the analysis? Any other numbers that need to be included in the evaluation?
Thanks...
Posted on 9/2/09 at 8:55 pm to dawgorama
quote:
dawgorama
What rate of return do you classify as a really bad investment?
The 40% loss many people took on their portfolio's last year?
Whole life with a shitty company is shitty option...whole life with a great company is a good investment. Certainly not for everyone, but to say it's always a bad investment is dumb.
Put simply, if you have the money to do it why not put some into whole life. There is only so much money you can put into retirement accounts for tax-deferred growth.
Life insurance is what it is, protects your family if something happens to you - that is its purpose. Do some research for yourself, look at financial ratings, shite google best life insurance companies and figure out what is needed for your situation.
Posted on 9/2/09 at 9:13 pm to GoTigers23
Try to find a single investment professional not profiting from the sale of whole life that thinks it is a good idea. It is overpriced crap, buy term, and invest the substantial savings in premiums. Still waiting for the answer to the question posed earlier, you have a whole life policy with a face value of 100K, and a cash value of 100K, you die, how much do your heirs get? Used the same question on a insurance salesman, he also would not answer.
Posted on 9/2/09 at 9:30 pm to GoTigers23
quote:
What rate of return do you classify as a really bad investment?
On a long term investment? <7%
quote:
The 40% loss many people took on their portfolio's last year?
We are talking about WHOLE LIFE investment, right? Long term. How much cash value would a policy I bought in March 2009 have accumulated? I'm betting it's less than the 30% (and I such at investing) I'm up since then...You wanna talk long or short term?
quote:
Whole life with a shitty company is shitty option...whole life with a great company is a good investment. Certainly not for everyone, but to say it's always a bad investment is dumb.
Put simply, if you have the money to do it why not put some into whole life. There is only so much money you can put into retirement accounts for tax-deferred growth.
Because you can make more in taxable investment vehicles. And they dont take that money when I die.
quote:
Life insurance is what it is, protects your family if something happens to you - that is its purpose. Do some research for yourself, look at financial ratings, shite google best life insurance companies and figure out what is needed for your situation
I've got plenty of insurance.
This post was edited on 9/2/09 at 9:32 pm
Posted on 9/2/09 at 9:46 pm to JPLSU1981
quote:
Term is basically renting, and whole is buying. People make it out to be very complicated, but that's the long and short of it ... renting vs buying. If you've got the mula, then there's no question you should get as much whole life as possible. If you don't have the dough, then you have no choice but to go with term.
Wholly shite
Posted on 9/2/09 at 9:51 pm to Cash
Whole life only in the case of an infant if paid-up with guaranteed insurability rider. Makes a great gift to a child or grandchild that they will hopefully NOT have to use.
Other than that, insurance is not a permanent need, imho.
Other than that, insurance is not a permanent need, imho.
Posted on 9/2/09 at 10:27 pm to dawgorama
quote:
If I have a whole life policy with a "cash value" of 100K and a "death benefit" of 100K...when I die will my relatives get 100K or 200K?
The death benefit of $100k. The cash value would be the living benefit for you, and would not be paid to heirs in death.
For the other guy who wants a simple real-life example of both whole and term, I'll try and put something together later or tomorrow. I'm getting ready for Seattle (flight leaves BTR at 7am).
And just for full disclosure, I am not a life insurance agent and do not work for an insurance company, although I regularly work with insurance companies on fixed annuity products for older clients (fixed rate guaranteed investments). I do have my Louisiana Life Health & Accident license, though, so I consider myself at least somewhat educated on life insurance in general, more educated than the regular Joe at least.
This post was edited on 9/2/09 at 10:31 pm
Posted on 9/2/09 at 10:28 pm to JWS3
quote:
Try to find a single investment professional not profiting from the sale of whole life that thinks it is a good idea
Ummm, you found one. That was easy. Am I saying put all your money into whole life insurance? Certainly not. I'm just trying to make the point that whole life insurance is not as bad as many average folks think it is. The bulk of your needs should be covered by term, but EVERYONE needs at least some whole life insurance, as much as they can afford. And my second point is for all the term lovers who hate whole life, you and your heirs will NEVER again see the money you put into term. Does it serve it's purpose of protection over the term? Of course, but just realize that money is gone forever and in the insurance company's pockets never to be seen by your family again as literally 99% of term policies NEVER pay out! 100% of whole life policies pay out at some point, to either you or your heirs.
This post was edited on 9/2/09 at 10:41 pm
Posted on 9/2/09 at 10:31 pm to JPLSU1981
What about my estate tax question?
Posted on 9/2/09 at 10:34 pm to kfizzle85
Yeah, the estate tax is pretty much unavoidable above the exemption of $3.5 Million for 2009. Actually, there is no estate tax currently on the books for 2010, so if you have a shite ton of money 2010 is a pretty good year to die.
Life insurance proceeds are merely federally income tax free to the beneficiary.
Life insurance proceeds are merely federally income tax free to the beneficiary.
This post was edited on 9/2/09 at 10:36 pm
Posted on 9/2/09 at 10:37 pm to JPLSU1981
Right. So if you have a lot of money, and you put it in whole, it doesn't really do you any good if it gets swept into your estate.
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News