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Old 10-21-2010, 04:41 PM   #81
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Join Date: Apr 2006
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Originally Posted by Emeritus View Post
Insurance is insurance, investment is investment.
I can think of one narrow circumstance where it may make sense to go with a whole life policy. Suppose one is an employee in the top tax bracket and has exhausted all means of tax deferred saving -- i.e. maxed out 401k, maxed out non-deductible IRA. Depending on the crediting rate, the mortality charges (and the equivalent charge for a term policy), and any commissions or surrender charges, it may make sense to buy the whole life policy now, allow the policy earnings to grow tax free and then, once FIRE'd and presumably in a lower tax bracket and without an ongoing need for insurance, simply cash out the policy. One can get tax deferral and meet one's insurance needs at the same time.

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