Rox and GK
- Thread starter herdfan06
- Start date
Have a license but since I moved to California I got out of insurance and got into recruiting and staffing
As I recall Fever has some sort of whole life or universal life policy while being unmarried and with no dependents. I think that might disqualify him, but I bet his Northwestern Mutual/Edward Jones guy LOVES him.
I hope this was sarcasm.
Unless you get a commission off sales for permanent life policies, they're rarely better. Pretty much every personal finance guru or book I've ever read (the white coat investor, a random walk down wall street, et al) has outlined how term is superior to whole for 95% of people. This links below explains it pretty well.
http://www.forbes.com/sites/timmaur...rm-life-insurance-in-90-seconds/#51d7b1c112fc
http://whitecoatinvestor.com/8-reasons-to-avoid-whole-life-insurance-and-4-reasons-to-consider-it/
http://whitecoatinvestor.com/how-to-buy-life-insurance/
Term life is definitely cheaper, however it only pays out about 3% of the time. Life insurance companies love them.
I bought a WL policy from NML when I was 25 years old, which was 26 years ago. It was only a $50k policy and the premium was, and still is, $59 a month, basically $700 a year. I did it as a way to essentially force savings discipline early in life. Was it a great investment at the time? Probably not. However, if I look at it now, I've paid $18k in premiums, it's got a $36,000 cash value and a $90k death benefit. My dividend last year was $1,800, which was a little over 5%, so not bad. Yes, I have to carry additional term, but I just look at it as one small part of my overall investment strategy these days and am glad I did it.
I bought my child a WL policy when she was born and the premium is only $13 a month, so about $150 a year. She's 19 and the annual dividend far exceeds the annual premiums and that $13 a month never changes. If she pays it until she's 65 it will have a substantial return for her.
I bought my child a WL policy when she was born and the premium is only $13 a month, so about $150 a year. She's 19 and the annual dividend far exceeds the annual premiums and that $13 a month never changes. If she pays it until she's 65 it will have a substantial return for her.
