quote:
I have been looking into Whole Life Insurance as this is what an agent is trying to sell me. I have been researching it and it is steadily losing the lusher I once thought it had. I feel like my money is better served in other areas like Term Life plus other investments that traditionally see a higher return. I have no particular need for a huge death benefit (when I am old) at this time.

What return are you expecting over 30 years?

quote:
On page 19, it states that the annual rate of Whole Life lapsing is at 4%, which would mean about 80% of investors never see the death benefit. This would mean that 80% see a bad return on their investment.

Explain. I'll try and read the article when I have time, but if 4% of policies are lapsing, how are 80% getting a poor investment?

1 Jump to Post ...

Report Post Jump to Post

Posted by MontyFranklyn

T-Town

Member since Jan 2012

23891 posts

Posted on 1/26/14 at 12:55 pm to GoCrazyAuburn

quote:
Explain. I'll try and read the article when I have time, but if 4% of policies are lapsing, how are 80% getting a poor investment

They become a poor investment the longer you live honestly. They build cash value very slowly, commonly taking around 20 years to break even(the premiums you have paid being equal or greater than the cash value). Even though the death benefit does continue to rise, depending if you select paid up additions, the money you spend on them becomes absurd because you may not even need that much of a death benefit 40 years from the day you get it and the gain from cashing it out is only about 2-4%. Therefore it just isn't worth while.

1 Jump to Post ...

Report Post Jump to Post

Money Talk - Replies to Post

Return To Board

Page 1

Return To Board