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Posted: 3/2/2017 11:17:38 AM EDT
[#1]
If you die does your wife need the money. If no then you don't need any life insurance. If your healthy did you compare it with term. If you need life insurance at 70 you failed to save. It's a game and they keep the money you "saved". IRSdoesnt tax them because even though they say it will make money with variable life you will never see it after fees. So I'm a big no but I have a friend who loves his policy, a friend of his sold it to him. He pays 10 times what I do and I have 4 times his coverage. If I need life insurance after 65 my wife can deal with it.
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Posted: 3/2/2017 11:21:43 AM EDT
[#2]
No. It doesn't make sense under most situations, at any age. Term gets you whatever insurance you need at the cheapest expense. Investments of your choice let you diversify and seek the best return. When you mix those, which is how they try to sell whole life, both of those things get watered down. The insurance is expensive and the "investment" returns are watered down. And, they might make you laugh when they talk about tax free loans to get access to money you have in "cash value". Just take the amount you will save with term over whole life and run it through an investment calculator as though you are investing it and you'll get the answer to your question.
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Posted: 3/2/2017 3:43:36 PM EDT
[#3]
Northwester Mutual is a great company. Their whole life products are second to none. I am not an agent, however my brother was. I own NML products and couldn't be happier with the performance (although, I purchased in my 20s).
Everyone has different life insurance needs. Life insurance can play an important role in estate planning. I would start with an estate planner/financial person. If they recommend whole life insurance as part of the whole picture, I would not hesitate to buy NML. There are a lot more factors to consider when looking at whole life than just comparing the premium to term and invest the rest. Whole life is permanent insurance. Some people want/have a need for that. NML pays dividends in addition to accumulating cash value. It is possible to have dividend eventually high enough to pay the annual premium (probably tough at 59). There are also single premium policies and long term care/life blended policies. Good luck. |
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Posted: 3/2/2017 4:58:13 PM EDT
[#4]
The only reason it makes sense is for your friend's son to get a commission check. That's what happens, these people get hired on at an agency, sign up all of their family, and then they can't sell the product anymore, so they leave the business.
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Posted: 3/2/2017 7:20:39 PM EDT
[#5]
There is never a reason Whole Life makes sense. If you need more life insurance, buy more Term.
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Posted: 3/2/2017 11:34:11 PM EDT
[#6]
Quoted:
I have 500k in term. I am 59, as is the wife. We both still work, self employed and will work for a few more years. We have a SEP through our company, and some passive income. enough to pay our property taxes. I'm getting talked to by a friend's son, who works for Northwest Mutual. Talk to me financial gurus. And thank you. With the rare exception of some high net-worth individuals with complex estates, it's very hard to say that whole life EVER makes sense. |
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Posted: 3/3/2017 12:43:54 PM EDT
[#7]
Quoted:
I have 500k in term. I am 59, as is the wife. We both still work, self employed and will work for a few more years. We have a SEP through our company, and some passive income. enough to pay our property taxes. I'm getting talked to by a friend's son, who works for Northwest Mutual. Talk to me financial gurus. And thank you. in for the Lulz seriously, is he pitching you a Life insurance retirement plan? Also...is he even licensed to sell anything besides insurance? Op...what is your total liquid net worth? real estate doesn't count. |
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Posted: 3/3/2017 1:55:05 PM EDT
[#8]
If you want to throw your friend's son a bone, sign up for a whole life policy. Make one monthly premium payment then cancel the policy.
The friend's son will get the sale and commission. You'll look like a hero and be out only one premium payment. Think of it as a gift. He will probably never even know you cancelled. Chances are, he'll be in a new line of work this time next year. |
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Posted: 3/3/2017 2:14:18 PM EDT
[#9]
Quote HistoryQuoted:
If you want to throw your friend's son a bone, sign up for a whole life policy. Make one monthly premium payment then cancel the policy. The friend's son will get the sale and commission. You'll look like a hero and be out only one premium payment. Think of it as a gift. He will probably never even know you cancelled. Chances are, he'll be in a new line of work this time next year. LOL....that's now how it works and his buddies son is going to be pissed. this is how it works. Let's say Juniors commission was $1000. He either get's a % of that $1000 upfront and then if the Op cancels the policy Junior has to pay the pro rated commission back. Or Junior gets a % of the $1000 divided by 12, every month he gets some money until 12 months, if the op cancels early no more commission. Or a combination of the two. |
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Posted: 3/8/2017 12:13:48 AM EDT
[#10]
I did find one reason to buy whole life. I had an acquaintance who wanted to leave some money to a family friend. He was not confident that his wife (the executor) would do it according to the will. So he bought a whole life policy and paid it off and made the family friend the beneficiary. Since it is insurance, there are no tax consequences for anyone.
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Posted: 3/8/2017 3:13:51 PM EDT
[#11]
Quote HistoryQuoted:
I did find one reason to buy whole life. I had an acquaintance who wanted to leave some money to a family friend. He was not confident that his wife (the executor) would do it according to the will. So he bought a whole life policy and paid it off and made the family friend the beneficiary. Since it is insurance, there are no tax consequences for anyone. That was a good idea. |
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Posted: 3/25/2017 2:43:14 AM EDT
[#12]
It builds a guaranteed cash value is about the only upside. If you can save enough to fund your retirement goals assuming a reasonable rate of return by the time your term runs out, leave it out.
Whole life is not an investment. a LIRP (life insurance retirement plan) can work for high earners/high net worth ind.s that have maxed out 401(k) cont.s and can't make IRA cont.s, but not with a whole life setup. |
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Posted: 3/26/2017 7:54:02 AM EDT
[#13]
There is never a reason to buy whole life and anyone who tries to sell it to you is either an idiot or a scumbag. Possibly both.
Term or nothing. |
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Posted: 3/26/2017 9:15:18 AM EDT
[#14]
Quote HistoryQuoted:
The only reason it makes sense is for your friend's son to get a commission check. That's what happens, these people get hired on at an agency, sign up all of their family, and then they can't sell the product anymore, so they leave the business. Go to Daveramsey.com read what he says about whole life. |
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Posted: 3/26/2017 10:37:32 AM EDT
[#15]
Quote HistoryQuoted:
There is never a reason to buy whole life and anyone who tries to sell it to you is either an idiot or a scumbag. Possibly both. Term or nothing. 
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Posted: 3/26/2017 11:24:11 AM EDT
[#16]
I have a whole life policy. Only because that is all I could get due to health issues. If I croak, it's enough to cover all outstanding debts but my wife will still have to work to pay the normal bills.
At a certain age, I would expect that I would be able to self insure anyway, have no debts, and leave a large chunk to !y family by investing. |
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Posted: 3/26/2017 11:32:35 AM EDT
[#17]
It's not always about what you made or make, it's what you keep.
Insurance guys think stocks suck and stock brokers think insurance sucks. If we had a market crash like 2008, look at what your stocks, bonds etc. did. I don't give a shit how diversified your broker had your portfolio, it ALL went down with the exception of those who shorted the market. Diversification makes no sense to me. Keeping it in bad times makes sense to me. The older one gets, the more important to keep it safe it becomes...... |
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Posted: 3/26/2017 2:22:06 PM EDT
[#18]
Quoted:
I have 500k in term. I am 59, as is the wife. We both still work, self employed and will work for a few more years. We have a SEP through our company, and some passive income. enough to pay our property taxes. I'm getting talked to by a friend's son, who works for Northwest Mutual. Talk to me financial gurus. And thank you. No. Whole life generally sucks. Costs like twenty times as much as term for similar coverage. Why do you need any life insurance at all at your age? |
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Posted: 3/26/2017 2:54:18 PM EDT
[#19]
Quote HistoryQuoted:
It's not always about what you made or make, it's what you keep. Insurance guys think stocks suck and stock brokers think insurance sucks. If we had a market crash like 2008, look at what your stocks, bonds etc. did. I don't give a shit how diversified your broker had your portfolio, it ALL went down with the exception of those who shorted the market. Diversification makes no sense to me. Keeping it in bad times makes sense to me. The older one gets, the more important to keep it safe it becomes...... The vast majority did because 90% of big firms follow markowitz theory. But everyone compares a bad market to 2008. That market wasn't horrible for a person pulling a check from their money. Here's why, yes you would have gotten smoked that year, but it was a V shaped recovery. 2001-2002 was shit, two down years in a row leading up to a big ass crash 5 yrs later. You would have been royally fucked. |
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Posted: 3/27/2017 7:32:04 AM EDT
[#20]
Quote HistoryQuote HistoryQuoted:
Quoted:
There is never a reason to buy whole life and anyone who tries to sell it to you is either an idiot or a scumbag. Possibly both. Term or nothing. |
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Posted: 3/27/2017 11:45:05 AM EDT
[#21]
Quote HistoryQuoted:
So which company do you sell whole life for? Quote HistoryQuoted:
Quoted:
Quoted:
There is never a reason to buy whole life and anyone who tries to sell it to you is either an idiot or a scumbag. Possibly both. Term or nothing. how many high net worth estate plans have you worked on? I say that, because you may have not been thinking about those folks when you made your comment. See, you said "never" There are two universally accepted strategies using that type of policy for folks who would have an estate big enough to trigger an estate tax that use whole life. They are reasons why you wouldn't use term in this situation. Trust me...one of the things that bring me joy in life is letting everyone know how I feel about insurance companies and agents trying to play in the field. |
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Posted: 3/27/2017 4:31:41 PM EDT
[#22]
Quote HistoryQuoted:
There is never a reason to buy whole life and anyone who tries to sell it to you is either an idiot or a scumbag. Possibly both. Term or nothing. To use your terminology.... anyone who |
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