Originally Posted by Semo
Why do you guys think term is so cheap?


Hint, hint.... it rarely pays out. Term is for protection. Permenant insurance is for wealth building and estate planning. Both are important, but the latter is rarely used outside of those that are focused on the next generations or very savvy tax planners.

Everyone with at least 1/2 million in assets should have 1 whole life policy even if it is very small. You never know if/when your estate might need the creation of a modified endowment contract or a lump of tax free money at death.

Plus, there are charitible trusts where you can really take advantage of giving and using life policies as vehicles to transfer wealth.

Life policies arent good. by themselves, but the tax law is what makes them benefitial.

For the average joe they are not good investment vehicles, but Ive never met anyone that was nearing death that said they wish they would have not purchased that life insurance.



I would think a lot of us American's have assets worth 1/2 million. If you are a "company man" and paid into a 401k for 20 years and have been living in your current house for 20 years. And also lived a little frugal, then you probably setting on 1/2 mill in assets. If you bought a house 20 years ago for $150,000 you probably owe $50k on it and it's worth $300k. That's 250k right there.