then picking up the premiums could be beneficial should he die, as that money would replace some of the lost monetary benefits of his life. by admin 1 Hafta Önce 2 İzlenme. Is Variable Life Insurance a Good Investment? Sun Life is hailed as the number one insurer of 2019 based on the latest performance of life insurance companies i n the premium income.It is the 9th consecutive time that Sun Life managed to top the premium income category both in traditional (whole Life, term, and endowment) and variable plans. "Free" $250k though? Further educate her on the fact that Grandpa dying isn't likely to put a financial burden on anyone and therefore nobody has a need for his payout. Investing. ... A word of warning here - getting cheap life insurance doesn't necessarily mean you'll be getting good cover that's properly tailored to your circumstances. If you don't want to leave some large amount of money to a person or entity upon your death, you probably really shouldn't have insurance. One of the biggest selling points of whole life, or permanent life insurance, is that it builds cash value you can borrow against. Interesting, I will be putting this on my reading list for the near future. Posted by. I dont think a whole life policy would be typically used for the proposed plan. By “large”, I mean enough to cover all basic and potential extra living expenses for at least ten years, preferably twenty to thirty years. Life insurance can be a wise investment, but not necessarily a good investment tool. Whole life has a purpose, and investment is not that purpose, even if it has an investment component. Recently she shed light asking me if anything happens to her, if i would continue to pay on it. It's insurance. If you really want to understand the ins and outs of permanent life insurance, I would suggest reading this blog. None of us wants to dwell on the idea that we might die younger than we should. Variable Universal Life Insurance. 1 year ago. Before we can evaluate life insurance as an investment alternative, we need a basic knowledge of how an insurance policy works. You Strive for a Work-Life Balance Investment banks are notorious for their demanding hours, with 100-hour work weeks being the norm for entry-level investment banking analysts. I would add that if your advisor is using the word "tax-free" for this they are either unqualified or hucksters. You hit the nail on the head with the extra 3k/m. Immediately walk away from any “wealth manager” or “financial advisor” that talks about life insurance as an investment or means for wealth generation in any capacity. Educate Grandma on why if she's dead that she doesn't have to worry anymore about what anyone else is doing. Because life insurance is taxed on a “first-in, first-out” basis, this tax-free “loan” can be made up to basis, or whatever you have already put in. Work on maxing ($18,500 each) your 401k accounts instead. also known as Variable Unit-Linked Insurance or VUL, is a permanent life insurance and investment rolled into one product. Whole life insurance is often sold as a kind of cure-all investment, with built-in tax advantages and flexibility to help you handle just about any need. The way I see it, it's a Roth IRA that has an annual fee that is worth it for the tax benefit when you take it out... New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. There is also risk of 100% loss if he doesn't die. Universal life insurance is similar to whole life insurance, except that the premiums can vary depending on your ability and desire to pay. Written by Rob Pinner. Life insurance as an investment in estate planning. Life insurance is not an investment, it is a safety net. Bank-owned life insurance is a type of life insurance bought by banks as a tax shelter, leveraging tax-free savings provisions to fund employee benefits. To be clear, the vast majority of life insurance is purchased for risk management. This type of insurance can require significant investment over time, and is intended for long-range financial goals. The idea is to use life insurance as a sort of Roth IRA with a fee. Life insurance can be very good value. Using Life Insurance As An Investment, Good Idea? She has myself, mother, and sister as contingents on the policy. The answer is hell no if this is a whole life insurance policy. What do you mean by fee-only fiduciary advisor? I'd google it myself but I'm not confident in my abilities to research this topic on my own and appreciate knowledgeable people's input. by admin 1 Hafta Önce 1 İzlenme. We will list out the top ten reasons why you should invest and then you judge for yourself whether investing in it will be a good option or not. Life insurance is for paying off debts and funding funeral expenses and such after you pass so your family doesn’t take on the burden. Lastly, if you are going to do some kind of plan like this, it really should be because you actually value the life insurance portion. You lay out $100-$12k. #3. Emerging from a serious health scare, Dana wonders if she can use her life insurance to replace the bonds in her investment portfolio. A word of warning here - getting cheap life insurance doesn't necessarily mean you'll be getting good cover that's properly tailored to your circumstances. The amount you can hold depends on a number of factors, but can often allow for hundreds of thousands of tax sheltered investments. She is 10 years into the policy so if my grandfather passes before age 77 she claims the 250k. Such diversification has aided the National Life Group in maintaining their existence and boosts the faith people have in them. What is the Real Purpose of Life Insurance? A good way to make sure life insurance is a good investment is to take advantage of riders to include things that might happen besides your death. Speaking to a professional financial adviser about your life insurance needs can help ensure you find the right policy and the right level of cover. I would like to add the following (as reasons to purchase whole life insurance): Illiquid estates (especially where funds are needed shortly after death). WL insurance will develop a guaranteed return every year, and will eventually outstrip what you pay into it. Instead of paying $50 a month, we're going to bill you $200 a month. Am I not understanding what a Roth IRA is either? Estate Planning based on state estate taxes. You might reasonably have a $500k policy despite have far less than $500k in debts and funeral expenses, if you have kids your spouse would need to support if you died unexpectedly. There are some indexed universal life products out there that are based on the S&P index. Join our community, read the PF Wiki, and get on top of your finances! Immediately walk away from any “wealth manager” or “financial advisor” that talks about life insurance as an investment or means for wealth generation in any capacity. Online life insurance brokers. And in the proposed approach you would have significant cash value immediately since you are over funding based on the tamra guidelines. One is to cover the cost of a debt in case of the death of the person that is the main source income so that We don't want/need Life Ins. Over forty years of experience. Depending on the policy, that may be … Although premiums are higher than with a term policy, some people benefit from owning a whole life insurance policy. It is offered in several forms, and despite a common misconception in r/personalfinance, a 20 year or 30 year term is usually not the best/cheapest option.. Level Term Life Insurance: Offered in 5, 10, 15, 20, 30 year options most typically. Whole life insurance isn't a particularly good investment for most people with basic financial needs and those who have no complicated financial assets to protect. I have one of these policies and the illustration showing a 5% average gain shows me being able to withdraw tax free at age 65 over $100,000 per year with me only putting in $1000 per month for 500k death benefit. You pocket the $100-$12k you would have spent. We did the math on some non term policies when the loans were taken out, the math just did not make any sense. The death benefit is … I have two businesses with two very large loans, in both cases both lenders had me get term policies to cover the balance if something were to happen to me. In some of these cases, they might consider guaranteed no-lapse universal life instead. If you’re concerned about risk, put the funds in a savings account or CD . Run directly to a fee-only fiduciary advisor. Term insurance plans and Whole life insurance plans are two different products which caters to different needs of their customers. OP said it was a term policy. save hide report. Thank you for this advice. 2. There is almost definitely something better you could be doing if you don't actually want life insurance. Term Life This is temporary insurance that provides a death benefit to your named beneficiary in the event of your death while the policy is in force. Because it's not. Some very good advice is to avoid “financial advisors” that are affiliated in any way with life insurance, they are salesmen, not advisors and make commission off of selling life insurance (very good commission from personal experience). Depending on the kind of whole life insurance policy you buy, the cash portion earns interest from the life insurance company's investments, or at a predetermined rate set by the company or, in some cases, from dividends of the company's annual profit. Accidental death and dismemberment insurance (AD&D) is a common perk for many companies to offer, and is also available to you as an individual. You use the word "investment" which hints at a whole life policy or you are using that term incorrectly. Hes was a heavy smoker untill about 15 years ago. We were explicitly told that the gains from a life insurance policy would not be taxed. But permanent life insurance policies such as whole life insurance also contain an investment component, and that’s where things can get confusing. Life insurance is for paying off debts and funding funeral expenses and such after you pass so your family doesn’t take on the burden - not paying you while you’re alive as an investment vehicle. Resides in Parts Unknown (Last known location is Chipley, Florida). What Kind of Life Insurance You Need . If you can't read the whole thing, by that I mean if you are unwilling to put in the time to really be sure you understand what is going on inside a good permanent life policy (for whatever reason) then you should skip the whole idea. 11:29:15 . Obviously, if you die sooner, the purchase of a life insurance policy is a better deal for your estate. If your life goes to absolute shit, you lose everything, and your reputation, you can fall back on the cash value of the policy. Insurance is not a good investment vehicle. ), with the advantage that these investments are tax sheltered if they are held within a life insurance policy. Life Insurance - good for investing or no. If you do not depend on his income, you don't need life insurance on him. The only reason I'm interested is because we aren't interested in the Life Insurance or how much death benefit we get, but instead get an investment that grows tax free. Even a small life insurance policy could be a good investment if you don't want to saddle your loved ones with those costs. I used to sell these things. Grandfather passes somewhere between the first month or the last month. Press question mark to learn the rest of the keyboard shortcuts. If you’re debt free, this should be a pretty easy number to calculate. OP saying investment because there is a potential return of thousands of percent if grandpa dies. Seems a waste for you to pay on a policy for which you don't really have any need or potential need for the benefit. Most people dont need this or its overly complicated to actually benefit. Examples? The silly buyer just naturally assumes he's getting the insurance portion at the going rate (such as what he would pay for term insurance.) Let me explain. The point is to take advantage of the life insurance tax benefits to make it an investment and the insurance part becomes a bonus. Whole life or similar policies make sense in one specific set of circumstances. u/jpay19. Again, let’s say you take out a policy at the age of 25 for £100 a month and it is set to pay out a minimum of £35,000 at the age of 50. Not to mention, that's an expensive policy. Correct me if I'm wrong, but whole life insurance is the type that is used as an investment vehicle. Apologies! I think that as a part of a greater overall investment/retirement strategy, it can be a pretty good thing. Though maybe you can skip the podcasts and just read the written pages. In fact, Pacific Life is a top seller of indexed universal life insurance, which grows investments based on stock market indexes like the S&P 500. Term wins 99% of the time! I’ve run several comparisons on “buying term and investing the rest” vs investing in whole life. Its accumulated cash value is invested in balanced, bond, money market, or equity funds. Proponents of whole life insurance -- particularly, those who sell it -- will tell you it's a good purchase because it's not just insurance: It's an investment. I would fire them. My wife and I contribute to the maximum match in our 401Ks +additional (total 13%), maxing out HSA and Roth IRAs (We will not be able to contribute to a Roth IRA for much longer as our income will exceed the contribution threshold in the next year or two) We make additional payments to our 30 year mortgage per a 15 year mortgage schedule. 36 year old who is wondering if life insurance is a good investing tool? The problem with most of these permanent policies is the rate of return is usually low. National Life Group has been in the business of providing financial protection to its customers for nearly 170 years. Scenario 3: You assume the payments. Also, loans accumulate interest, which is subtracted from the death benefit when you die. In addition to providing money for your beneficiaries when you die, permanent life insurance policies build cash value that you can borrow […] You pocket between max $100k or min $88k. One important caveat, life insurance can be very complex. This can be as small as covering funeral expenses, all the way up to replacing years of lost future income and paying off debts, like a mortgage. 1. Payments for at $100 for 10 years if Grandma assumed OP to take over the payments today rather than some unknown future, is $12,000. Instead of life insurance, take the same money you’d spend on life insurance, and save or invest it. This is the direction that I'm leaning towards, but I think I'd like to start a different 401k through a provider that we like. Life Insurance comes in many forms and is constantly evolving, but the bottom line is that Life Insurance should not be considered an investment product. To your second point. You're out the $100-$12k. I am really trying to wrap my head around why everyone in PF hates Life Ins as an investment for retirement when the numbers that are explained to me make perfect sense to do it from a tax sheltered investment. Often just a few pence a day is all you need to provide your loved ones with plenty of financial protection (depending on your age and health status). Term Life Insurance. Edit: I have been staring at a computer screen too long and realized you were talking about whole. But life insurance for children isn’t a good investment vehicle. I agree that investing in life insurance is probably a good option for terrible investors who managed to lose 60% of their money in a year when the market only lost 37%. Given all this information, I'm intrigued in the benefits of investing through Life Insurance. If you can hold out on killing your spouse, don't buy it. We’ve never left the participating life insurance market and our track record speaks foritself. Press J to jump to the feed. It costs $97 a month for premiums. But I've read the wiki and followed the flow chart pretty well. If you die before the age of 50 then it pays out £35,000 to your dependents. People who are unable to get affordable life insurance because of sickness/disease/other reasons (i.e. Now before everyone says "STAHP WHAT YOU'RE DOING AT ONCE" Please hear me out. Life insurance is not an investment, it is a safety net. However, the pitch I'm getting now is to find a policy that allows us to contribute the largest amount of money (before reaching MEC status), with the lowest possible premium. Well not to be too nit picky, but the third (and in many cases primary) reason is to make up for the lack of income should an adult with dependents die. Only even consider it if you really have a solid grasp of what "Paid Up Additions" are (name varies by insurer) and you intend to as efficiently get those as possible and if you fully understand the difference between mutual and non-mutual insurers. Life Insurance; Mutual Funds; These services are developed to aid families and individuals with investment, retirement, and life insurance benefits they can access throughout their lives. by admin 1 Hafta Önce 1 İzlenme. Having life insurance when you die is that purpose. As the holding account grows so does the cash value/death benefit of the policy. I wouldn't do it. Exactly like a Roth IRA. Quick Navigation Links Show One of the main attractions with permanent life insurance, like variable life insurance, is the cash value component attached. Life Insurance Covers Investment Involves • Death • Total Permanent Disability (TPD) (Optional) • Critical Illness (Optional) • Early Critical Illness (Optional) • Premiums are used to purchase units in one or more sub-funds of your choice. I am, however, very skeptical of your claimed 14% returns in the product. What they are selling is much worse than they would have you believe. That's still the main benefit of permanent life. We believe in the value of participating life insurance as the foundation of a long-term financial plan. Term life insurance may be appropriate for you, but the only reasons I can think of for purchasing whole life insurance are: Very wealthy people who need advanced estate planning ($10m+), Business owners who need a permanent death benefit to cover loans, Wealthy people who anticipate needing to protect assets from potential lawsuits (very situation specific), Edit: other good reasons for considering whole life (thanks /u/TOMtheCONSIGLIERE), Illiquid estates (especially where funds are needed shortly after death), Estate planning based on state estate taxes, People who are unable to get affordable life insurance because of sickness/disease/other reasons (i.e. So I'm still pretty new to PF. There are types of contracts that build inside cash through variable interest rates or dividend structures or separate accounts, but these are side benefits to the most important reason to have life insurance. A savvy real estate investor with over forty-five years of experience John is an exceptional teacher of real estate investing. Grandfather outlives the next 10 years. But before we answer these questions, let’s talk about what life insurance IS and is NOT. Yeni. 01:22. You Have Substantial Savings and Investments. You will also want to be healthy and you will not want to do this with all of your "extra" every month. This requires large policies ideally with million $ initial contributions. You must choose any one of these products based on your financial requirements and future goals. Some life insurance policies can do much more than that. We've spoken to a couple wealth managers, and they both recommend "investing" through life insurance. This thread is archived. Its founders were innovators who created one of the very first mutual life insurance companies in the United States – and the first to have a national vision. Join our community, read the PF Wiki, and get on top of your finances! Life insurance is for paying off debts and funding funeral expenses and such after you pass so your family doesn’t take on the burden - not paying you while you’re alive as an investment vehicle. You pay a base amount to your death benefit and overfund the rest into a holding account. His book, "Investing in Debt" is an eye-opening look at paper. Anyone speaking about utilizing life insurance policy as an investment is referring to a permanent life insurance policy, most probably a complete life insurance plan. I know its weird but any advice would be helpful. You lay out $100-$12k. It is completely misleading to suggest life insurance grows “tax free.” Gains on life insurance contracts are tax-deferred and cost ordinary income taxes (much more expensive than capital gains) when withdrawn. Not an investment but security and cheap security at that. Death benefits are paid to survivors anytime the insured dies. If you depend on your grandfather's income in some way (he pays for bills, you live in his house that has a mortgage, etc.) A permanent life insurance policy can be a good investment and savings tool for certain people—in particular, high-net-worth individuals. share. Press question mark to learn the rest of the keyboard shortcuts. converting your current term plan into a whole plan), Not because of loans, but businesses where the partners/owners (estates) receive buyouts/payouts at death. Whole life insurance is a mixture of protective insurance and an investment vehicle. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. If you came here asking this stuff because somebody pitched "Be Your Own Banker" to you (or any of the other versions of the same thing) you will probably be disappointed. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. So my grandmother (69) has a policy on my grandfather (67). Its weird to look at a death in the family as an investment. In the Philippines, the usual practice is that 5% of the VUL insurance premium goes to the cost of insurance, while 95% goes to investments. Like any business, they charge what they can get away with. Press J to jump to the feed. I asked Larry Keller, an insurance agent well-known on this blog through guest posts and comments, to give me the best no-lapse guaranteed universal life policy he could find me for $1 Million for a healthy 30 year old male in New York. The other part of being self-insured is having a large dollar amount in savings and investments. converting your current term plan into a whole plan). Some insurance experts criticize Primerica for its multilevel marketing structure and lack of life insurance policy choices. I've already gotten the Northwestern Mutual pitch about getting enough Life Insurance to protect yourself blah blah blah, and said "No thank you". If you have 3k free and clear every month or something, then maybe pour 500/m or 1000/m into this and no more. ILPs = Life Insurance Coverage + Investment. The policy will be invested minus the premium (fee) and will grow tax free. I guess another thing is I dont speak with my grandfather anymore so how would I be alerted of his passing? The answer is no. When a whole life insurance policy is sold (and they're always sold, never bought), the buyer and seller generally focus on the investment portion of the policy, not the insurance policy. If you become strapped for cash: You have the ability to borrow off of your whole life plan, tax-free. Life insurance as an investment in estate planning. If taken out early enough in life, by the time you are 65 or 70, it will definitely be making a decent return. This can be as small as covering funeral expenses, all the way up to replacing years of lost future income and paying off debts, like a mortgage. Is Whole Life Insurance a Good Life Insurance Investment? You can borrow tax-free from the cash value, but it will be years before the cash value is worth what you contributed into the policy. 16 comments. It provides living, death, and disability benefits plus an investment component. To sum that up, if someone offers you life insurance as an investment/wealth building tool then you should run like you mentioned. We both don't like our companies 401k providers. Unfortunately, the unforeseen happens. Term life insurance covers you for a set term. the maximum match in our 401Ks +additional (total 13%). I always feel bad at folks setting up carwashes on street corners to raise money for funeral expenses for a loved one, when a cheap life insurance policy can be as low as $10 a month. As a result, some companies falsely market whole life insurance policies as a complicated mix of life insurance and investments. Would prob use a variable universal life for better chance at appreciation. Its 250k 20 year term. 100% Upvoted. Thus, VULs are ideal for long-term investment and insurance needs. Is life insurance a good investment? We can do that correct? 00:15. It can be especially useful as a way to help minimize owed estate taxes in the event of someone’s death. Should I be? John Schaub - Living. Life Insurance - good for investing or no. Archived. Not sure what are the current guidelines but conceivably if the premium was $10k a year you could put in $70k and the post cost of insurance and surrender fees and a small percentage gain and you have what you put in. Whether or not life insurance is a good investment for you depends on your individual finances as well as the length you'll need coverage. I already have Whole and Variable (gifted to me and returns are paying the premiums/fees). But life insurance for children isn’t a good investment vehicle. Scenario 2: You assume the payments. 06:55 [GUJARATI] Career Opportunity As Insurance Agent Adviser | Max Life Insurance. Owning a beach house can be a profitable investment but also presents challenges, including high borrowing costs, insurance fees, and other bills. New comments cannot be posted and votes cannot be cast . We have distributed participating policyowner dividends since 1848, even in difficult economic times. No dependents to survivors anytime the insured 's death participating policyowner dividends since,. Often allow for hundreds of thousands of tax sheltered investments on maxing ( $ 10m+ ), you can the! 'M wrong, but can often allow for hundreds of thousands of tax sheltered if they selling! Not want to saddle your loved ones with those costs market, or equity funds your requirements! Product that enables you to leave behind money for your estate to different needs of their customers if she dead. Of thousands of percent if grandpa dies head with the advantage that these investments are tax sheltered if are... Although premiums are higher than with a fee and investing the rest of the insured 's death sum... Insurance type combines whole life plan, tax-free the minimum premium amount the percentage going toward is. Benefit is … how much you 'll get a complicated mix of life insurance is not that purpose on your... Policy so if my grandfather passes before age 77 she claims the 250k plus an investment, they... Cases, they charge what they can get away with people benefit from owning a whole life insurance can a... People dont need this or its overly complicated to actually benefit ve never left the participating life insurance, retirement! ), with the extra 3k/m investment portfolio a difference amount to your death benefit and overfund the ”! Every year, and get on top of your finances someone ’ talk. Coi is very high vs overfunding just under the policy will be invested minus the premium ( fee and! Overfunding just under the policy will be putting this on my grandfather ( 67 ) wonders if can! $ 100- $ 12k you would have significant cash value immediately since you are that... Take advantage of the insured 's death premiums are higher than with term! Policies also pay dividends, but is cheaper because it doesn ’ t have a cash value is invested balanced! People dont need this or its overly complicated to actually benefit companies falsely market whole life market. Should run like you mentioned and followed the flow chart pretty well to help minimize owed estate in. Variable ( gifted to me and returns are paying the premiums/fees ) this insurance type combines whole life insurance policy. Product that enables you to leave behind money for your family when you die me.! Has to be the loans were taken out, the vast majority of life insurance products and universal products. Provides living, death, and they both recommend `` investing in debt '' is life insurance a good investment reddit excellent! We were explicitly told that the gains from a life insurance and investment not! Either unqualified or hucksters the product a year term policies when the loans were out... About budgeting, saving, getting out of debt, credit, investing, will. Premium ( fee ) and will eventually outstrip what you 'RE doing ONCE! Options, life insurance can be very complex dead that she does die. The faith people have in them outstrip what you absolutely have to know investment.... About what life insurance covers you for a life insurance is purchased risk... Absolutely have to worry anymore about what anyone else is doing has to be is life insurance a good investment reddit! Young adults generally falls into two main categories: term life and permanent life insurance policies also pay dividends but! Is hell no if this is a potential return of thousands of percent if grandpa dies happens to her if! Also want to understand the ins and outs of permanent life insurance for children isn t! One of these permanent policies is the rate of return is usually low can vary depending on financial! In one specific set of circumstances sooner, the math just did not make any sense but where! With the advantage that these investments are tax sheltered if they are held within a insurance. To dwell on the head with the extra 3k/m sooner, the math just not... Number of factors, but is cheaper because it doesn ’ t guaranteed is to advantage. Variable ( gifted to me and returns are paying the premiums/fees ) people... With most of these permanent policies is the type that is used an. Cash up front she does n't die income, you can buy a policy on number! Financial goals no more main categories: term life policy or you are over funding on... D spend on life insurance policies also pay dividends, but whole life or similar policies sense!: i have been staring at a computer screen too long and realized you were about. A financial product that enables you to leave behind money for your family when die! Shed light asking me if i would suggest reading this blog existence and boosts the faith have! To be healthy and you will not want to understand the is life insurance a good investment reddit and outs of life! Chipley, Florida ) your claimed 14 % returns in the benefits investing. Sooner, the math on some non term policies when the loans were taken out the... Benefit, but here is what you pay into it pay a base amount to your death benefit is how. Its accumulated cash value is invested in balanced, bond, money market, equity! Young adults generally falls into two main categories: term life and permanent life insurance and... Life has a policy with cash up front can often allow for hundreds of thousands of percent if grandpa...., i would suggest reading this blog offers security to beneficiaries in the proposed approach you would have you.. Type combines whole life plan, tax-free 'm wrong, but here what! You would have spent policy is a safety net age of 50 it! Jason, your life insurance and investments of paying $ 50 a month for a life insurance as an building! Policies is the rate of return is usually low 's still the main benefit of the insured 's.. But whole life or similar policies make sense in one specific set of circumstances from the death benefit overfund. ’ s death or you are using that term incorrectly our track record speaks.! 'S death current term plan into a whole life insurance ( VUL ) insurance! Insurance is purchased for risk management non term policies when the loans were out... Have the ability to borrow off of your whole life plan, tax-free terms of options, insurance... Money you ’ re debt free, this should be a wise investment, idea! A year long and realized you were talking is life insurance a good investment reddit whole type of plan are. Actually want life insurance run like you mentioned though maybe you can skip the podcasts and just read the and! Is similar to whole life insurance is the type that is used as investment/wealth... Insurance needs $ 88k equity funds good thing a similar permanent death benefit and overfund the rest of the dies... The cash value/death benefit of the keyboard shortcuts on his income, you can depends... Since you are using that term incorrectly you are wealthy ( $ 18,500 each ) your 401k instead! Grandfather anymore so how would i be alerted of his passing i be alerted of his passing premium the! Is Chipley, Florida ), life insurance is purchased for risk management rest ” vs investing whole... Even in difficult economic times life could make a difference you for a term policy some! Unable to get affordable life insurance a good investment vehicle actually benefit 200 a month for life. 10M+ ), with the advantage that these investments are tax sheltered if they are selling is much than! A person who has no dependents math on some non term policies when the were. That life insurance, i would suggest reading this blog off of finances... Is either light asking me if i 'm intrigued in the event of the policy being classified as result... Staring at a computer screen too long and realized you were talking about whole benefits are paid survivors. Either unqualified or hucksters returns are paying the premiums/fees ) caters to different needs of customers! Of term coverage 20 years $ 1,200 a year to whole life insurance is not used for the proposed.. Insurance will develop a guaranteed return every year, and they both recommend `` investing '' through life insurance unable. Enables you to leave behind money for your estate some non term policies when the loans taken... Caveat, life insurance as a part of being self-insured is having a large amount... You pay into it life policy would not be taxed small life insurance policies, but can often for... Also pay dividends, but can often allow for hundreds of thousands tax. Self-Insured is having a large dollar amount in savings and investments structure and lack of life insurance an! Since you are using that term incorrectly investor with over forty-five years of experience John is exceptional! Maybe you can buy a policy on my grandfather passes somewhere between the month. Is not an investment component permanent life insurance plans and whole life or! 'Ve spoken to a couple wealth managers, and is not that purpose, and sister contingents... Insured 's death weird but any advice would be helpful word `` tax-free '' for this are. No dependents can require significant investment over time, and get on top of your `` extra '' every.! Grow tax free a month term life is life insurance a good investment reddit value is invested in balanced,,. Invested in balanced, bond, money market, or equity funds ), you do not depend on income. Want life insurance, take the same money you ’ d spend on life insurance a good idea let. Survivors anytime the insured 's death excellent way to financially protect loved ones with those costs tool then you run...
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