re: Northwestern Mutual

Contributions are cumulative premium payments.

So, say you are in the rare position that single premium is for you and you put in $50k up front. There would be no reason to surrender the policy because it is paid up. BUT, if for some reason you did surrender, any amount of cash value above the $50K would be taxable.

If you do a normal policy, it works the same. As long as policy is in force, any cash withdrawals are tax free. If you have paid in $20K and surrender the policy, any cash value over the $20K is taxable. However, I would just suggest using dividends to pay premiums at that point anyways so that you get paid up insurance and your cash tax free.

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This times 1000. It's theft. If you die, your beneficiary has to choose the death proceeds or the cash, not both. There is a reason it's referred to as trash value.

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ERRRR!!! Wrong! Stop listening to Dave Lamsey and actually do some homework. The cash value is included in the policy death benefit you don't choose between the two. The cash grows along side the death benefit so that the policy doesn't MEC. This is the rule and law of life insurance.

When you have people maxing out their 401(k)'s or self employed people who can't put money elsewhere and want to receive a tax free benefit on the receiving end of their retirement, this is a great place to put money as long as you choose a company like this! It's also a great place for people to put money that would be protected from creditors.

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Whole Life sucks, and only a Whole Life salesman will tell you differently, it's the worst financial product ever created.

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You couldn't be more wrong. Whole life can be a great product if used correctly and at the right time.

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ThatsAFactJack

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Don't know what you you do, but if you haven't talked to your accountant about potential tax deductions for your LTC policy, make sure you do.

Depending on what type of employee/employer, you could deduct quite a lot.