Cashed in a Whole Life policy this year and it will remain one of my biggest financial disappointments ever. 30 some years ago, I was sold on the idea that the balance would never earn less than 6%, less the cost of insurance. It's the "cost of insurance" that I failed to understand. It ate up most of that promised 6%.
Knowing what I know now. I would have bought a term life policy for a fraction of the cost and put the remainder into mutual funds and ended up with 10 times the money.
I suspect most of the regular posters here are not at the age where decisions like this are relevant, but for any younger posters, or lurkers, listen to the voice of experience. When considering Whole Life, DON'T DO IT. Take the above suggestion and end up miles ahead of where I am.
When we bought a farm we used to take term insur for part of the purchase price, assuming the survivor could either sell or rent [my wife]
As you get older term became too expensive so we stopped
We took education insur policy for both both our children. Up front commision and then guarantied pay out IF they went beyond high school. The idea was their profit came from kids NOT going beyond high school. Both our kids did go and the money helped considerably
I cashed in a life insur policy to raise money to buy a truck when I went broke farming with 22% int
That policy had no commisions but did not do so well either
I agree
Term doesn't seem very exciting but it serves a purpose with least cost
Insur must have a good reason, read the fine print and understand completely, otherwise get term insur.
Would not consider term insurance at my age. But a few decades ago, it would have been the way to go. I have a policy through work, until I retire. After that, I'll "self-insure"...
Thanks Tim!
We've always had term life insurance going back 35 years..........with our wedding anniversary coming up in exactly 1 month!
I bought a whole life policy(or so I was led to believe) early 20's from a friend new to the business and needed some help.
A basic 50K policy basically to get me in the ground and throw a party-I wasnt married wasnt planning on kids if I did marry down the road.The real attraction was "start young with a low premium which will never be increased" yeah rite-untill you read the small print that at age 65 adjustments will have to be made-and they were.
The cash out value is nil and my premium is at least 3 times the original-still need it to get me in the ground and for that party.
John
Yeap. The only people who do well with whole life are the insurance companies.