So I am finally getting around to addressing life insurance after DW has hounded me for the last few years. I have been told by most of my family and friends that all I need is Term Life Insurance. However, I have just met with two insurance agents and they are really pushing for permanent insurance. Their argument is that the term plan is worthless after the 30 year term. But the permanent insurance has a cash value that can be accessed tax free after a certain term (15 years). And that for someone my age (30) this would be a better insurance vehicle because it would also act as a retirement account.
We currently have access to 403b and 457 plans through DW's employer and Roths for the both of us. We are not yet able to fully fund the 403b and 457 plans but can fully fund the Roths. If we decided to do permanent insurance I think we would have to reduce our contributions to either the 403b 457 or Roths to be able to afford it.
I am supposed to have another meeting with this agent to discuss the specifics, but they suggested today that I should reduce my tax deferred savings to allow for permanent insurance. I always thought that permanent insurance was supposed to be really expensive and the costs on their funds a lot higher than Vanguard or Fidelity. But am I missing something? Do people my age use permanent insurance along with their more traditional retirement plans for their retirement planning?
Any insight that any of you could provided would be much appreciated.
Thanks,
Ted
We currently have access to 403b and 457 plans through DW's employer and Roths for the both of us. We are not yet able to fully fund the 403b and 457 plans but can fully fund the Roths. If we decided to do permanent insurance I think we would have to reduce our contributions to either the 403b 457 or Roths to be able to afford it.
I am supposed to have another meeting with this agent to discuss the specifics, but they suggested today that I should reduce my tax deferred savings to allow for permanent insurance. I always thought that permanent insurance was supposed to be really expensive and the costs on their funds a lot higher than Vanguard or Fidelity. But am I missing something? Do people my age use permanent insurance along with their more traditional retirement plans for their retirement planning?
Any insight that any of you could provided would be much appreciated.
Thanks,
Ted