Money Matters

Does anyone here have Cash Value Life Insurance?

Your thoughts?  Good or bad?

 

I'm doing my own research, but just curious what MM thinks.

Thanks!

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Re: Does anyone here have Cash Value Life Insurance?

  • What is your goal for the insurance?

    - provide cash to care for the family if one of you dies

    OR 

    - you've absolutely maxed out your retirement

    OR 

    - advanced estate planning

  • Everything I've heard says that term insurance is the way to go... that life insurance should be just that, insurance on your lives and that investing should be routed to other areas.
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  • We have a million dollars in whole life insurance between the two of us, but it is more a means of diversifying our investments than for the actual life insurance. We are very high income and easily max out our pretax investment options for retirement, so this is just a small piece of the pie for us. If you aren't high income, in most cases it is better to just buy a cheap term life insurance policy and divert the extra money to investments outside of life insurance.
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  • We have it and I wish we didn't.  We didn't do our homework, and thought we were doing such a great thing as a young, newlywed couple!  We're locked into this insurance plan that's currently worth about $300 (cash value).  We've paid over $10,000 in premiums.  Do you have any idea what I could have done with that $10,000??  I've honestly never looked into our options, but I may do that in the near future. 

    I think most financial professionals will tell you that term is better for 99% of the population. 

  • Go with term unless you have a high income and have maxed out all options for tax sheltering. 
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  • My parents bought some for me when I was born.  It would cover the cost of a casket and funeral service but no way would it cover 20 years of bills and college and raising a family.

    Term Life Insurance Rules.

  • Thanks for the input ladies.
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  • image ExpatPumpkin:

    What is your goal for the insurance?

    - provide cash to care for the family if one of you dies

    OR 

    - you've absolutely maxed out your retirement

    OR 

    - advanced estate planning

    If you're just looking for insurance to cover your life - which describes most people - term is your best bet.  Cash value premiums are REALLY HIGH and the interest rates are crummy.  Plus, if you die your beneficiaries only get the death benefit, not the cash value as well.  

    Buy term and invest on your own to build wealth.  After 20-25-30 years (whatever term you choose), you should be "self-insured" against an untimely death.

  • Also if you ever get terminally ill and have to qualify for a government medical plan like medicaid to pay medical bills, then anything with a cash value has to be cashed out and spent on medical bills before the government pitches in...so you can say bye bye to the insurance policy and will have nothing to leave your family or dependents.  I wouldn't recommend one with a cash value like that!
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  • Would never buy it. Life insurance should not be an investment. Buy term, and invest the difference.
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  • image LillyMD:
    We have a million dollars in whole life insurance between the two of us, but it is more a means of diversifying our investments than for the actual life insurance. We are very high income and easily max out our pretax investment options for retirement, so this is just a small piece of the pie for us. If you aren't high income, in most cases it is better to just buy a cheap term life insurance policy and divert the extra money to investments outside of life insurance.

    This

  • If this is an investment or estate planning issue I would advise against it.  However, if this is to cover up a lapsed policy or you have never held a life insurance policy before I would definitely recommend it.  I currently have a twenty year term life policy out on myself.  I am the head of household, and if I were to die my family would need the extra income to sustain itself.  When it lapses in about eight years I will probably get whole life now that I can afford it.  No insurance = no bueno!
  • My aunt has a entire life policy $ 10k on her and one for her husband for $ 10k ? $ 25/month with $ 4k in the money worth account
    They are in their early 50's
    When they die how does the cash sent to the loved ones protection is as it is unless of course a loan is out how about the money worth account and how do i know what it is is one its said in the coverage and we known as and requested
    When they die how does the funds sent to the household coverage is as it is except if a mortgage is out how about the money appeal account and how do i know what it is is one particular its stated in the coverage and we referred to as and asked

     

    <a href="http://www.quotes-center.com/cost-of-insurance/">cost of insurance</a> 

  • My aunt has a entire life policy $ 10k on her and one for her husband for $ 10k ? $ 25/month with $ 4k in the money worth account They are in their early 50's When they die how does the cash sent to the loved ones protection is as it is unless of course a loan is out how about the money worth account and how do i know what it is is one its said in the coverage and we known as and requested When they die how does the funds sent to the household coverage is as it is except if a mortgage is out how about the money appeal account and how do i know what it is is one particular its stated in the coverage and we referred to as and asked

     cost of insurance 

  • Always go for the term insurance if you have an option. You can have what you pay for after a certain period. It is always good to have cash to back you up in times of need.

     

    http://www.onlineinsuranceportal.com/is-whole-life-insurance-a-good-investment/

     

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