Whole Life Insurance

[Scrapr]

Quote:

Originally Posted by krldrummerboy I just received an IM from him "I need to talk to you about how the laws are changing around the old 401k's and IRA's this week, and not for the better. Just wanted to help you get grandfathered in if it is something you want to consider, otherwise the option will disappear."

One WAG this "not for the better" is the fiduciary rule changing. Maybe turn it around on him and ask if he is a Fiduciary? LOL

(I thought that rule changed at the first of the year)

[Islandtraveler]

I have a close friend in the insurance business. The commission on a Whole Life policy is up to 80-90% of the first year premium plus annual residuals. Add the incentive trips, parties and gifts that the insurance companies provide, one has to wonder who is paying for it. His stock answer to the client that asks the question of how he gets paid is always the same. “The insurance company pays me, not you.”

That being said, I purchased a $100,000 WL policy about 20 years ago for my wife and myself. It is fully self funded now and has a cash value of just over $60,000. The cash value increases by about 5% a year and the death benefit is about $110,000 which increases annually as well. Whole Life insurance has better value if held over time. I think that this is a great piece of property which I have no intention of getting rid of.

[Koolau]

Yeah, DW and I fell for the Universal Life or WL or whatever many years back. Now, since we would both "rated" for health issues, it's almost like a bargain. They think we are going to die earlier than they originally expected so maybe we can stick it to them by doing so. Wait, seems like there's a problem here. Uh, I'll get back to you on this. YMMV

[Big_Hitter]

Quote:

Originally Posted by Souschef That sounds like the broker who wanted to put me in QLAC to minimize my RMD

that's a bad idea?

it also provides longevity protection

[Big_Hitter]

Quote:

Originally Posted by Islandtraveler I have a close friend in the insurance business. The commission on a Whole Life policy is up to 80-90% of the first year premium plus annual residuals. Add the incentive trips, parties and gifts that the insurance companies provide, one has to wonder who is paying for it. His stock answer to the client that asks the question of how he gets paid is always the same. “The insurance company pays me, not you.” That being said, I purchased a $100,000 WL policy about 20 years ago for my wife and myself. It is fully self funded now and has a cash value of just over $60,000. The cash value increases by about 5% a year and the death benefit is about $110,000 which increases annually as well. Whole Life insurance has better value if held over time. I think that this is a great piece of property which I have no intention of getting rid of.

I bought a 1M WL policy 17 years ago. I'm pretty sure it's paid up now (I need to call) CV is about $300K and death benefit is about 1.2M. It also goes up at 5%. I have no regrets.

I'm pretty sure this beat buy term and invest the rest by a long shot on a tax-effected basis. YMMV

[Midpack]

Some people misunderstand the true purpose of life insurance - it's simply to provide a $ estate if you don't have one to protect your family (normal for younger families), that has considerable value. When you are older, presumably you'll have an actual $ estate your family can rely on, and no longer need life insurance of any kind.

Whole life insurance has always been a poor savings alternative, great for the agent, not the policyholder. Get term insurance to protect your family while you are young, and maintain it until you have an actual $ estate. Hopefully there will be no need to add to your term insurance, as your actual $ estate grows. Good luck with your "friend."

[38Chevy454]

How do you think all that travel and "won a Ferrari" are paid for?

Run, Forrest, run.