We had a whole life policy back in the 90’s, ended up cashing it out because we were BROKE….
We both have a term policy now until we’re 72. After that who cares….
Everything will be paid off and set by then.

Sounds correct.

Have several through work. Also have a term life that I can convert to whole life in a couple years. When I'm gone youngun should have enough to pay off the house, buy a new car and spend a few weeks wherever she wants and still have some.

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.

If you’ve been working 20 years of a career/adult job and don’t have $500,000…ouch

“Buy term and invest the rest”

The only people that like whole life are the ones that sell it. And they REALLY LIKE IT

You are correct

Lot of folks don't have $500,000 free and clear because of debt. They upgraded their home or have taken on massive amounts of college loans. The biggest issue I am seeing and it's happening to really good friends of mine, they are taking out HELCO against the profit they have in their homes. But for just living expenses and the cost of raising a family. Son is 16 and they want them in a Z71 on 35s, HELCO. Wife is always trying to plan vacations, HELCO. Travel ball tournament in Gulf Shores, HELCO.

If the economy goes in the tank, HELCOs going to be a big part of it because they are no longer at 3%.. they at 8% today and its an adjusted interest so their payment was $300 a month and now it's $600.

There is a time and place for them. It’s not the insurance, it’s the cash value and the tax benefits that make them a piece of the puzzle for almost every higher net worth individual I know. It’s part of estate planning. You can load it with cash over a 7y period and then it has tax advantages as well as a place to park money safely when not using it. At least in Alabama, they are judgement proof as well if written correctly.
I do agree though, that if you just want/need life insurance, buy term.

To dovetail into your "dont pay for your kids college" post the other day. This a perfect example why it was bull doo doo. In many cases is parents irresponsible money management. Two car payments, 30 mortgage, $6k in credit card debt - "middle class fancy" is killing the middle class.

I needed this info, our terms ran out but the wife still has a 50,000 whole life. We thought about getting a term just for funeral expenses but I do have a bury policy my dad bought me when I was young. Both my parents had one and it actually cost us 600 bucks to use. Right know we are good in our 401k and should be for a while, Lord willing

It's irresponsible to take on debt in your name to pay for your kids college, in my opinion. It's also not required of you as a parent to fund their secondary education, and when they know and understand this they make better decisions on important life choices. Like going to a trade school or the military. Getting a degree that will actually pay for the schooling. Not some BS degree.

If you want to help pay for college I would help them at the end, let them take on the loans and help them with the payments after they graduate. Or you can take out a $100,000 loan in your name and pay it off. What I really like about letting my kids pay for their college was it set them free. They didn't have us still trying to parent them and us holding, "well we pay for college so you are going to do what I say" over their heads. They got to be adults at 18 and make their own decisions.

So many parents "think" it's their responsibility to pay for college and that's just not true. Freshman year at Alabama is going to cost what, $25,000? 99% of families don't have an extra $25k just laying around. So they take out loans against their homes, cash out 401k, etc. Then their kid drops out after 1 or 2 years with nothing. Happens to the best of kids, high school honor students sometimes don't even make it.

Jmudler, I don't think its the parents responsibility and you feel it is, just a different opinion. I don't think its doo doo if you want to pay for it, just a different philosophy towards parenting. I don't think one is right and the other is wrong. Both can actually be right.

IULs are popular with wealthy folks like doctors and lawyers because you can build some cash value and there may be tax advantages. Used to be extremely popular years ago but tax law changes reduced some of the benefit. IT IS NOT AN INVESTMENT. IT IS INSURANCE. If you just want to protect your family term is your less expensive option. I would never suggest an IUL for just anyone. There are suitability standards folks need to meet to even consider that product. It’s a matter of being ethical as an agent. Be careful with IUL and VUL offerings and read all disclosures carefully. If you don’t understand make the agent explain it to you before you consider pulling the trigger.

Ive got a 30yr term for me($250k) and my wife($150k)and a ryder for my kids($10k) each, should i have to bury one of them, God forbid. Thatll get me to 76yrs old. My wife will be 71yo. Its $70/mo for all of it. Seemed like the best plan for us. If i live to 77yo, ill have wasted $25k

My wife and I both have whole life policies. Plus we have term coverage too. Earns more than a any savings account and I can borrow from the policy tax free yet still earn on the original balance before any policy loan.

Benefits? Why go to a bank and borrow money and pay interest when you can essentially be your own bank? Plus a great way to have some decent tax benefits too. And it's permanent insurance after 7 years but you can still deposit funds into it if you want to grow it for estate planning purposes.

I've been able to fund my last two real estate investments this way...really the sole purpose for us. If anyone is interested read up on Infinite Banking concept. There is a reason every single large corporation or financial institution uses these policies for their management and executive level employees. I'm by no means wealthy but following some of the strategies used by the wealthy can be beneficial at times, assuming those things are ethical and legal obviously.

When you borrow your own money, is there interest applied on the pay back?

Yes, but the original “investment” also continues to earn. You technically don’t borrow your own money. You borrow money from the insurance company at a pre-set interest rate and they use your money as collateral. You can pay yourself back with interest or not, or theoretically not even pay yourself back ever and they will be made whole when you die.

Is an annuity the same as whole life or is it a variation

We have our inversymenys locked in just curious because of a situation 30 plus years ago

Oh yeah they are pushing it, interest rates aren't expected to ever be as low as they were. so it really benefits them to sell a bunch before folks know whats up.

Not in the same ballpark. Annuities are considered life products but they vary greatly in the riders/options offered. An annuity grows tax deferred like a qualified plan(trad ira). But the earnings are taxable at ordinary income rates. They can pass on tax free which is a great feature. Fixed annuities have a fixed rate a variable annuity has subaccounts like mutual funds that you invest in. That is just the basics but yhey are not like whole insurance.