Originally Posted by nun
It all boils down to whether you think the promised return and claimed low risk of WL insurance and the death benefit are worth the high cost.
But I would urge anyone considering WL (or an annuity) to truly parse out what "low risk" really means. It's not a very useful word, because it is used in different contexts to mean different things. WL is less volatile than a diversified portfolio, but it has higher risk of falling behind inflation. And regarding the likelihood of default: I have heard life insurance salesmen say or imply that WL insurance is just as secure as a Treasury bill, and that's just not so. Your future is effectively tied to the fortunes of a single company. Sure, it seems quite unlikely that a financially sound insurer will fail to pay in the future, but a few decades ago it seemed unlikely that GM would ever declare bankruptcy. Ultimately, an insurer's solvency is only as good as the performance of their underlying investments and the accuracy of their underwriting in predicting future claims.