Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Calling all W/L insurance specialists
Old 05-21-2015, 09:35 AM   #1
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 424
Calling all W/L insurance specialists

Hi.

Can someone explain how a non participating whole life insurance policy works?

Does anyone have one of these that would like to comment?

What happens if you want to stop making premium payments and/or deposits.

Thanks.
__________________

__________________
JohnDoe is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-21-2015, 10:04 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 2,711
Quote:
Originally Posted by JohnDoe View Post
Hi.

Can someone explain how a non participating whole life insurance policy works?

Does anyone have one of these that would like to comment?

What happens if you want to stop making premium payments and/or deposits.

Thanks.
If you read the policy it should have non forfeiture provisions, that is the policy can convert to either term insurance or reduced paid up insurance.
There may well be a table with the policy that describes these features.
__________________

__________________
meierlde is online now   Reply With Quote
Old 05-21-2015, 02:35 PM   #3
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 424
So a policy would be drawn up, at which time I would review it and decide if it makes sense for me and it should contain all the very specific details?

These types of policies have a flat premium and predetermined cash values based on payments made since they are non participating?

So for example, I will know now that in year 10 my cash value will be x if I pay x every year and don't make any w/d's or loans?
__________________
JohnDoe is offline   Reply With Quote
Old 05-21-2015, 02:47 PM   #4
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,097
sorry - I have a par W/L policy with a mutual insurer


__________________
Swing hard, look up
Big_Hitter is online now   Reply With Quote
Old 05-21-2015, 03:46 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,424
Quote:
Originally Posted by JohnDoe View Post
So a policy would be drawn up, at which time I would review it and decide if it makes sense for me and it should contain all the very specific details?

These types of policies have a flat premium and predetermined cash values based on payments made since they are non participating?

So for example, I will know now that in year 10 my cash value will be x if I pay x every year and don't make any w/d's or loans?
I'm surprised to hear of someone marketing a non-par whole life policy but what you say sounds about right... fixed premium, schedule of guaranteed cash surrender values, etc.

I seem to recall that with all policies you have a "10 day free look" where you can recind the policy within the first 10 days of issue and get a refund of your premium. However, the sales materials and illustrations you receive should have a lot of the same info on how the policy operates and your agent should be able to explain how the the policy operates.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 05-21-2015, 04:56 PM   #6
Recycles dryer sheets
robertf57's Avatar
 
Join Date: Jun 2014
Posts: 329
Just a thought. If you don't have a good understanding of how a whole life policy works, you shouldn't "invest" in it. I think the number of circumstances where a WL policy is actually a good idea is incredibly small.
__________________
robertf57 is offline   Reply With Quote
Old 05-21-2015, 05:04 PM   #7
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,097
I'm glad I have mine - kinda like a roth


__________________
Swing hard, look up
Big_Hitter is online now   Reply With Quote
Old 05-21-2015, 06:17 PM   #8
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 424
Quote:
Originally Posted by robertf57 View Post
Just a thought. If you don't have a good understanding of how a whole life policy works, you shouldn't "invest" in it.
I agree. That's why I came here because I know there are a lot of knowledgeable folks, to say the least, on this topic.

I am hoping to learn and determine what questions to ask an agent.
__________________
JohnDoe is offline   Reply With Quote
Old 05-21-2015, 06:28 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Houston
Posts: 1,435
Please, if you have to rely on the agent answering your questions, just steer clear of whole life. It's a ripoff for 99.9% of buyers.
__________________
soupcxan is offline   Reply With Quote
Old 05-21-2015, 06:53 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,424
+1 What is your purpose for buying whole life? What do you expect it to do for you? What problems will it solve for you?

Most people only need life insurance for 20-30 years at the most and do not need life insurance for the term of a whole life policy.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 05-21-2015, 08:20 PM   #11
gone traveling
 
Join Date: Nov 2013
Location: Los Angeles
Posts: 202
Quote:
Originally Posted by JohnDoe View Post
Hi.

Can someone explain how a non participating whole life insurance policy works?

Does anyone have one of these that would like to comment?

What happens if you want to stop making premium payments and/or deposits.

Thanks.
Your post is so predictable. Unfortunately some insurance salesman sold this crap. I'd get out and invest in index funds.
33% of policy holders have dumped their policy after 5 years
50% of policy holders have dumped their policy after 10 years
70% of policy holders have dumped their policy after 20 years
77% of policy holders have dumped their policy after 30 years


Guaranteed cash surrender value at 81.1 years old: 3.02% return. Wooooh! 3% if you live to be age 80. What a great deal for the insurance company!

Quote:
ripoff for 99.9% of buyers
+2
__________________

__________________
ETFs_Rule is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax specialists around? jIMOh FIRE and Money 48 02-15-2010 01:08 PM
Real estate-- calling the top. Nords FIRE and Money 100 12-22-2005 09:23 AM
Calling all tech-hardware geeks/PC purchase?? farmerEd Other topics 20 08-19-2005 03:56 PM
Calling PollyAnna haha FIRE and Money 13 09-25-2004 09:43 PM
Calling all standard deviates oldcrowcall FIRE and Money 1 07-27-2004 01:06 PM

 

 
All times are GMT -6. The time now is 03:05 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.