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RE: Money, Wealth and Country Clubs...
I highly disagree about this idea of whole life insurance, I used to sell life insurance, and I have seen and explained to many people which paid into these plans to be left with no money and no insurance in the end, just when they thought they needed the insurance the most. Keep your investment and insurance accounts separate. BUY ONLY TERM LIFE INSURANCE. There are enough investment which can be found that are sheltered away from the government. Good luck
Thanks for that, it's always good to hear from someone who used to sell lofe insurance. I'm not sure I understand how they were left with no money and no insurance?
Could you elaborate on that please?
Your premiums are charged up to 10% to "invest in their market funds, they over-state the rate of returns in the brochure, you pay a higher cost of insurance every year as you get older, leaving less to go into your investment. Then one day, your statement shows you owe 500 a month to keep your policy instead of 100 a month to keep your policy alive, then you cancel because you cannot afford the new premium. No money, no insurance. They took it all, and by the way, why would you borrow and pay interest to get your own money out of your investment, just saying.
I don't know much yet about these, but I do intend on investigating... I'm having a hard time believing they're all like you said but as far as borrowing, if it's anything like my 401k, than the interest go back into my own fund.
The main stream financial advisors will ssy it’s a really bad idea to borrow from your 401k, but I really find it to be an awesome way to borrow your untaxed money no questions asked!
Not all whole life is like that is it? I have both a term life policy, where the term ends at 75. and a whole life one in case I (likely) die older than 75. How else would you prepare for living past the amounts of time in most term life plans you start young enough to get a good rate?
Also, I thought my monthly fees were fixed. Are you speaking of some subset of whole life plans that is variable?
In all whole lives, each year is like a term, the insurance payments into the policy premiums are based on age, it makes sense that as you get older, your chance of dying grows, so the payment to the company goes up yearly, less into your saving portions. All policies blow up, it is hard to explain until you look at your policy, then it is clearly obvious. Insurance is only needed as a hedge, if you had a million in liquid investments, you do not need 500K in insurance at age 75. Insurance should be viewed as a replacement of your earning power for your dependents, not as a huge lumps sum after you die, as you get none of the benefits. Term is what it is, a protection of your assets as you build wealth. Just look at your actual policy, ignore the projection sheet that falls out of the policy, as it is not guaranteed.