Whole life - I know

So no consideration in using it as an additional post tax/roth type retirement option?

I got one because my term policy expired at end of March 2020 when it was difficult to see a doctor for a new term policy. I could roll into a whole life with my current insurer without a new physical, so that's what I did. I did not want to go bare on life insurance during COVID. I'll probably go through the process of qualifying for another term policy soon, then drop the whole life.

Another related question:

I've met with 2 different financial advisors recently. Are there financial advisors that don't harp solely on whole life policies?

We're young, no dependents, and make a decent living. I just want someone that can explain possible options for us going forward. I'm not understanding how after all of the info I've read about retirement and wealth management, I've never seen insurance policies be the main thing spoken about (if at all).

Can someone in layman terms explain how and why someone would use these whole life policies? I think I understand it can protect some of your assets during a downturn, but wouldn't you be better off pouring that money into more assets (real estate for example) instead of into an insurance policy for years and years?

I can see both sides of the coin. If you are getting a 5% return on the whole life, technically you are under performing the market for a 20 year time frame and therefore you have a potential significantly less balance to pull from in retirement.

The other side is that during retirement, the whole life gives you another post tax avenue to pull from to allow you to manage your taxable income. It also allows you to have equity to draw from during a market downturn.

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If you are getting a 5% return on the whole life, technically you are under performing the market for a 20 year time frame

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I treat it like a bond.

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In this scenario, presume the actual life insurance portion is a negligible aspect

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That is your big no.

If life insurance has benefits for you, then there may be justification for the cost of insurance built into the policy. If life insurance isnt important, think of this as an investment vehicle with 4 times the fees of primerica with a conservative tax deferred return.

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I've met with 2 different financial advisors recently. Are there financial advisors that don't harp solely on whole life policies?

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These are salesmen that sell these products and they harp on them because the policies make them a lot of money.

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I've met with 2 different financial advisors recently. Are there financial advisors that don't harp solely on whole life policies?

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Hilarious, how someone sticks financial advisor behind their name and people automatically trust their motives. Like others have said, FAs are just salespeople, like the ones on car lots. Car salespeople push extended warranties b/c it makes them more commission just like FAs push whole life.

Reminds me of the time, a StateFarm agent tried pushing life insurance for my kids. It made no sense and the better option was just to invest those premiums in a 529.

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No, buy term and invest the difference. Whole life is a rip off and is sold only because the agent gets 50% of the first year premium as commission.

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Whole life is sold because people make bad decisions with their money all the time. The commission’s obviously help, but people take ridiculous guarantees and ignore the true costs on their money all the time.