It's a good asset protection tool, not a good investment if you have discipline

Apr 21, 2017
7:41:43am

VegasCoug Contributor

To actually save and invest. The IRR of return is very low.

If you are uninsurable, then convert your term to some perm insurance. If you are still insurable, load up on convertible term and invest the difference.

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VegasCoug

Bio page: VegasCoug
Joined: Sep 21, 2001
Last login: Apr 18, 2024
Total posts: 1,472 (1 FO)

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Messages

Author

Time

Whole Life Insurance. What is your take on whole life? I have term right right, but need to re-up my term life

RugbyCoug All-American

4/21/17 7:38am

I have never seen numbers to suggest it is worth it.

Baron

4/21/17 7:38am

Also get a way from northwestern for life insurance.

Baron

4/21/17 7:43am

The term seems fine. The numbers he shared seemed ok. It would be purely a diversification strategy.

RugbyCoug

4/21/17 8:00am

It is not fine if it is ending and how do know if the price is good?

Baron

4/21/17 8:02am

It's not really ending yet. I bought 20 year term. I have 7-10 more years. I'm young enough that renewing for another 20

RugbyCoug

4/21/17 8:09am

It's good if you don't have the discipline to invest the difference

paulb

4/21/17 7:39am

What if you have other investments and this is just an asset diversification strategy?

RugbyCoug

4/21/17 8:10am

I have never been able to wrap my mind around this argument.

Superman21

4/21/17 10:33am

You have to believe that you could take the difference in premium and do better than 6-7% per year with a similar

RugbyCoug

4/21/17 10:57am

If you dig into it, it makes little sense IMO.

Y'zFan

4/21/17 7:40am

I have it and borrow against it to fund short term real estate deals. It works

Iman23

4/21/17 7:40am

It's a good asset protection tool, not a good investment if you have discipline

VegasCoug

4/21/17 7:41am

Ohh, be sure you max out all your tax advantaged investment options first.

VegasCoug

4/21/17 7:43am

Yes, I'm doing that. The rep is telling me that the whole life benefit on back end is tax free. Of course, premiums

RugbyCoug

4/21/17 8:11am

No point in it

HoustonCougar

4/21/17 7:46am

It can be valuable in estate planning. Especially if your assets are in excess

RdF3

4/21/17 7:46am

Very true, but there are very few people that applies to.

KingDave

4/21/17 7:50am

I used to be a Northwestern Mutual rep

KingDave

4/21/17 7:46am

Re: your last paragraph...can you give me an example of when it might not be

Iman23

4/21/17 7:50am

I don't know

KingDave

4/21/17 7:55am

Will do. I doubt I will make enough in retirement to get hit with the tax

Iman23

4/21/17 8:02am

If you take out money which is in excess of the premiums you've paid to that point

Indy Coug

4/21/17 8:50am

It makes sure your family has money to bury you when you die

BYU Fan

4/21/17 7:50am

The problem with term is your premiums start going through the roof

Big Daddy D

4/21/17 7:52am

I just got a 30 year term policy for that reason

KingDave

4/21/17 7:57am

Yup, slight correction: in thirty years you will not be spending 160

Big Daddy D

4/21/17 2:42pm

Get a cheaper term policy and invest the difference in premium.

Mister P

4/21/17 7:53am

Good for the guy that sells it

gwill

4/21/17 8:14am

I'd look at universal life before whole life

Indy Coug

4/21/17 8:49am

I wish I would have bought a whole life policy in my 20's

Jersey hunter

4/21/17 8:55am

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