Life Insurance. I Have None. Do You?

be an ass about it if you want, which, clearly, you do. but I've done a fair amount of research here and have spoken with several professionals, both friends and folks I have no prior relationship with. this is about protecting my family, and it's something I take pretty damn seriously. so I made sure I got it right. and facts are facts. the return on the cash value policy is bad. the money, if you die, is lost. how is this a good deal?

 

I read this site for a long time before I registered. I've read your posts. I'm not surprised by your response. Please go back and read post No. 14 of this thread before you start labeling others.

 

here's some facts on cash value - in the first three years or so of the policy, be it whole life or universal, all the extra money you put in goes to fees, commissions, etc. after that, your return will run right about 4 percent on universal life. it's even lower on whole life. there's a new deal out where they put your money into mutual funds for you, which is a better deal, but still only gives back around 7 percent.

sound good? well, until you figure that those same mutual funds will return 12 percent if you invest in them on your own and not through your insurance policy.

it's just not smart to invest in your life insurance. invest the savings and you'll come out ahead.

 

I'm not labeling others ... just saying that being snarky about the whole thing isn't really needed. and not sure about the whole 'not surprised by my response thing' and what that means. but whatever - this should be an informational thread for pete and others, and I was just providing some of my knowledge and experience.

 

I provided information that a professional had passed on to me, but you dismissed my thought. And now you label me as snarky.

Do you get my point?

 

well, pretty sure your friend was wrong, is all. we'll just agree to disagree, I suppose.
now ... about that beer ... I prefer hefeweizen.

 

I'm taking it all with me, it isn't much but what the hell?

 

I would never put one on my kids.

I don't give a shit. If something bad happens, I'll deal.

I don't want to imagine for a millisecond any relief coming from that loss.

 

yeah ... it's morbid, sure, but the whole process is. funerals are hella expensive and this allows her to be honored the right way, God forbid. and once she's 18, it's her policy for her and she's got that little bit of security for life. of course she will want/need more, but it's a great start.

 

And I'll take the word of a professional who I know and trust over an anonymous message board poster, is all. But I think I made that point a few posts back.

Enjoy your beer. I only drink on weekends.

 

Some googling found this:

http://www.smartmoney.com/personal-finance/insurance/term-or-whole-life-8011/

 

Insurance equals Risk Management.

Insurance should never be considered an investment.

Insurance SALESMEN are professional salesmen. They want you to buy their whole life and universal products, because their commissions are MUCH greater than term life commissions.

No different than a Financial Services company that only wants to sell you their product, usually with high loads, fees and commissions for the salesma, err, investment professional.