![]() ![]() ![]() I’ve had this money sitting in a savings bond earning only 2.75% for 5 years. Sorry guys I’m in Mexico with limited internet. The child grows up, then you have a terrible "investment". Plus, it’s just a plain bad idea to buy life insurance on children. If that is the case, all the negative comments mentioned above still apply. The original poster might be thinking of buying whole life insurance policies on the lives of his child (or children). Upon rereading the original post, you might be correct. OP was talking about buying it for the kids with the funds from their maturing CDs I was interpreting this as OP was buying WL for the children (not themselves). Good news - whole life will have paid a death benefit.īad news - OP could have saved a LOT of money, and gotten the same amount of death benefit, by buying level term. If spouse or kids are trying to “unwind” it, that means that OP is dead. Or the spouse or kids when they're stuck trying to unwind this (as we see in many discussions here) We will try to help you later on when you realize your mistake. You should be able to get something with a guaranteed pretax IRR close to 3% by year 20. Also consider asking for quotes from other agents who advertise a focus on cash value accumulation. However, if you explore this more, ask the agent for an illustration with a term rider and paid-up additions where 1/3 of premium goes to the base policy and 2/3 to term/PUA. (The difference between the cash value of the policy and what those same funds would have grown to over 16 years in an 80% stock / 20% bond portfolio.)Īs you can see, most BH advise against life insurance for savings. When I ran the numbers, I realized the policy has cost me around $160,000 in wealth. I didn't think much of it until I found this board. I was sold a whole life policy when I was 30. They will effortlessly parry each one.ĭid they give you an illustration? If you post that, we'll be able to point out where they're misleading you. The salesperson you're talking to is VERY good at overcoming objections. Stinky, who replied above, was a high-level employee at one of the big insurance companies that sells these things. If you have a legitimate need for more life insurance, buy level term.ĭon’t buy the whole life product. You’d be far better served putting your $8500 per year into low cost index funds in your taxable account. Look at the second year and third year values, compared to premiums paid. You’re paying $8,500 in the first year - what is your end of first year surrender value? Is it close to zero? Most, if not all of the difference between your $8500 premium and the first year cash value is going straight into the agent’s pocket as commission. Presuming that you have an illustration from this agent, pull it out and look closely at the early year numbers. ![]() Don’t believe him - he’s a salesman at heart, and well versed in sales techniques. He will try to smooth talk you about how this is the greatest financial product ever invented, the “Swiss Army Knife” of products that can fulfill all kinds of needs. Since you’re quoting future projected values, it sounds like you’re already talking to a NYL agent. As I said in the cited quote above, whole life is a bad product for 99+% of people, and you’ve given no information to make me think that you’re in the 1% for whom it is useful. “Whole life insurance” is a mongrel product, combining an “insurance” element and an “investment” element. I would never, ever use whole life as a savings vehicle, which it seems is your primary motivation. If I could afford it I would also like to pay for their house and or fund their retirement. I wanted to pay for the college, and wedding. This is probably close to the last step I’m going to do for them. Hoping to use that for them to pay for their kids college. My goal was they could use this policy to help down payment on a house if they want to or if the policy does well they will have $650k when they retire. Min value at 55 years in will be guaranteed $140k. My kids cd matured so I’m thinking of getting them this. Anyone have much experience with them? I read some reviews. ![]()
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