Members Thunderbroom Posted October 18, 2008 Members Share Posted October 18, 2008 We had our second meeting with our financial planner today. Things were going well until he started pushing a variable universal life insurance policy. He kept talking about having guaranteed affordable life insurance when I get older (62+) and having a cash value as well as being able to use this type of policy as an investment tool. I told him my goal was to be financially independent (at the land of critical mass as financial guru Bob Brinker calls it) by that age and not have a need to have life insurance. I told him I preferred a term policy. What are your thoughts on life insurance? Link to comment Share on other sites More sharing options...
Members Svi Posted October 18, 2008 Members Share Posted October 18, 2008 Funny, our financial advisor gave us the exact opposite. Term is the way to go, in my opinion (and his). We had a whole life policy when we met him the first time. He told us to cancel right away. He showed us the numbers and it just doesn't make sense. You'll get more out of investments than in whole life. ETA-if he's trying to get you to believe that whole life/universal is the way to invest, you need to find someone else Link to comment Share on other sites More sharing options...
Members Thunderbroom Posted October 18, 2008 Author Members Share Posted October 18, 2008 ETA-if he's trying to get you to believe that whole life is the way to invest, you need to find someone else I'm beginning to think the same thing. Link to comment Share on other sites More sharing options...
Members bassgirl9 Posted October 18, 2008 Members Share Posted October 18, 2008 We had that pushed on us too. We went with term and put away the money we would have spent on whole and will have a great deal more in the long run. Link to comment Share on other sites More sharing options...
Members GreaserMatt Posted October 18, 2008 Members Share Posted October 18, 2008 I have a kid, so yes I have life ins. Link to comment Share on other sites More sharing options...
Members willsellout Posted October 18, 2008 Members Share Posted October 18, 2008 Funny, our financial advisor gave us the exact opposite. Term is the way to go, in my opinion (and his). We had a whole life policy when we met him the first time. He told us to cancel right away. He showed us the numbers and it just doesn't make sense. You'll get more out of investments than in whole life. ETA-if he's trying to get you to believe that whole life/universal is the way to invest, you need to find someone else +1, this is what we were told as well. He said the whole point of life insurance is to cover your family money-wise to pay off debt. He said you should be out of debt by retirement and therefore life insurance isn't necessary. Dan Link to comment Share on other sites More sharing options...
Members y-o-y Posted October 18, 2008 Members Share Posted October 18, 2008 On the advice of my CPA, I entered into a term life insurance policy 2 years ago. I hope/expect this one policy to carry my family to the point where life insurance is not a relevant issue. Link to comment Share on other sites More sharing options...
Members RIC N BACKER Posted October 18, 2008 Members Share Posted October 18, 2008 Life insurance! that {censored} is Death insurance....I am cancelling mine since I cant use it once I am gone! LOL Link to comment Share on other sites More sharing options...
Members Bassius Posted October 18, 2008 Members Share Posted October 18, 2008 term life...the rest is a waste of money and is just stupid .02 Link to comment Share on other sites More sharing options...
Members rikshaw Posted October 18, 2008 Members Share Posted October 18, 2008 i have no life so i don't bother with it. Link to comment Share on other sites More sharing options...
Members ezstep Posted October 18, 2008 Members Share Posted October 18, 2008 We had that pushed on us too. We went with term and put away the money we would have spent on whole and will have a great deal more in the long run. +1 Find out how much whole life costs, then buy term and invest the difference you are saving. You will wind up with quite a bit of money when it is all said and done, and you will have coverage as well. Link to comment Share on other sites More sharing options...
Members BeeTL Posted October 18, 2008 Members Share Posted October 18, 2008 Run away, very fast. Remember when I told you that? :poke: By the way, there are valid and legitimate reasons to own permanent, cash value life insurance: 1. You expect your heirs to owe significant estate taxes. 2. You are a principal in a closely held business, and need a funded succession plan. Do either of these apply you? Link to comment Share on other sites More sharing options...
Members jasper383 Posted October 18, 2008 Members Share Posted October 18, 2008 Good advice all around. Life insurance should not be used as an investment. It should be, well, insurance. The commissions salespeople make on this type of thing are insane. This is why they are everywhere. Link to comment Share on other sites More sharing options...
Members Perfessor Posted October 18, 2008 Members Share Posted October 18, 2008 I used to be a salesman for the now defunct Kentucky Central Life Ins. Co. They invented universal life in 1982. Even the CEO of BP had a policy from us. I sold some as a retirement/insurance investment and I carried a universal life computer around wherein all I had to do was plug in people's info and spit out their entire future investment. The thing is you're better off self insuring by forcing yourself to save into a bank, then getting 5% CD's, and getting a 5 year term policy. You probably have one through work as well. I had a universal life policy for 3 years in the 80's and whereas it's the best an insurance company can produce in terms of return, they aren't as good as investing in a steady % return on your own. Link to comment Share on other sites More sharing options...
Moderators Kindness Posted October 18, 2008 Moderators Share Posted October 18, 2008 Remember when I told you that? :poke: By the way, there are valid and legitimate reasons to own permanent, cash value life insurance: 1. You expect your heirs to owe significant estate taxes. 2. You are a principal in a closely held business, and need a funded succession plan. Do either of these apply you? If they don't, the only reason he is pushing that policy is because he makes the most money off it. Slimy. I'm all about the term, baby. Link to comment Share on other sites More sharing options...
Members Perfessor Posted October 18, 2008 Members Share Posted October 18, 2008 If they don't, the only reason he is pushing that policy is because he makes the most money off it. Slimy. I'm all about the term, baby. Insurance agents make 50% of the first year's premium, and 10% for the next 5 years and then 2% for the life of the policy!! So it doesn't matter what type of policy, just the amount of your premiums. Link to comment Share on other sites More sharing options...
Moderators Kindness Posted October 18, 2008 Moderators Share Posted October 18, 2008 Insurance agents make 50% of the first year's premium, and 10% for the next 5 years and then 2% for the life of the policy!! So it doesn't matter what type of policy, just the amount of your premiums. Depends on the company. Try getting a Northwestern Mutual Life Insurance agent to sell you term insurance. In any case, when buying insurance I work with insurance brokers that do other things for a living so they can waive their commissions and I don't end up paying service fees. Link to comment Share on other sites More sharing options...
Members BeeTL Posted October 18, 2008 Members Share Posted October 18, 2008 Depends on the company. Try getting a Northwestern Mutual Life Insurance agent to sell you term insurance. In any case, when buying insurance I work with insurance brokers that do other things for a living so they can waive their commissions and I don't end up paying service fees. Northwestern Mutual is where I started in the insurance business... Link to comment Share on other sites More sharing options...
Moderators Kindness Posted October 18, 2008 Moderators Share Posted October 18, 2008 Northwestern Mutual is where I started in the insurance business... I know one guy that's there now. He is a decent friend, but he turns sketchy as soon as he thinks it's time to talk business. It's creepy. Link to comment Share on other sites More sharing options...
Members The Real MC Posted October 18, 2008 Members Share Posted October 18, 2008 Do you know where the majority of insurance profits comes from? Life insurance. I know a friend who used to work for AIG and there was tremendous pressure to meet a monthly quota of selling life insurance policies. Ever read the terms of those things? They have all kinds of waivers if your death resulted from even the most innocent activities. It's a scam, pure and simple. Link to comment Share on other sites More sharing options...
CMS Author Craig Vecchione Posted October 18, 2008 CMS Author Share Posted October 18, 2008 If he looks like this: You need a new agent. Link to comment Share on other sites More sharing options...
Members BeeTL Posted October 19, 2008 Members Share Posted October 19, 2008 I know one guy that's there now. He is a decent friend, but he turns sketchy as soon as he thinks it's time to talk business. It's creepy. I like to think I'm sketchy and creepy even BEFORE I talk about insurance. Be consistent, that's what I say... Link to comment Share on other sites More sharing options...
Members BeeTL Posted October 19, 2008 Members Share Posted October 19, 2008 Do you know where the majority of insurance profits comes from?Life insurance.I know a friend who used to work for AIG and there was tremendous pressure to meet a monthly quota of selling life insurance policies.Ever read the terms of those things? They have all kinds of waivers if your death resulted from even the most innocent activities.It's a scam, pure and simple. It's pretty rare that a policy doesn't pay if a death occurs unless there's fraud involved. However, it's even MORE rare that a death occurs while a policy is IN FORCE. Pure life insurance is cheap because people rarely die before retirement, and people rarely carry life insurance after retirement. Link to comment Share on other sites More sharing options...
Members Perfessor Posted October 19, 2008 Members Share Posted October 19, 2008 I know one guy that's there now. He is a decent friend, but he turns sketchy as soon as he thinks it's time to talk business. It's creepy. That might say it all right there. I never knew anyone to write a policy for free. They either got their money one way or another! Link to comment Share on other sites More sharing options...
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