@toosmartforyouI know exactly what happens...to a standardly
structured whole life policy. AGAIN, educate yourself on what is really out
there. Life insurance, specifically whole life insurance is the MOST
misunderstood asset class. GET EDUCATED! Whole life insurance is not a one size
fits all nor is there only one way it is structured. Sadly 95% of people believe
what the "gurus" tell them about these things, and what they are being
told is a fraction of the truth.
go ahead and take whole life, or universal life off of the table. The insurance
companies will love you for it. Death benefits are paid on less than 2% of all
term policies issued. It is a great business model for them. When budgets get
tight term life is always the first to be dropped.
@ tdwdsYou may want to check into what happens to your returns if
you decide to cash in your whole life policy. You don't get everything you
think you have earned. Sorry, check it out carefully.
@luv2organize & toosmartforyouEvery persons situation is different and
to say to take Whole Life off the table completely is silly. There are many
instances where a Whole Life could benefit the client. Take for example a client
who has an estate that they would like to pass along to a son or daughter. It
may be cheaper for the client/children to purchase a Whole life policy on the
parent to pay for the Estate Tax at death. So to say take it off the table
completely is silly to say. I will agree that the average persons need is Term
insurance but you cant overlook that every person has different needs and goals.
I would suggest that the client sit with their advisor and have a needs analesis
done to determine what type of insurance and how much would cover sufficiently.
Dont take whole life off the table completely. If you structure whole life the
correct way it our preforms other "buy term and invest the difference"
option by 10x. What needs to happen is for for the average person to get
educated and not just follow the dogs barking up the same tree. Just because
most of the dogs bark up the same tree doesn't make it the right tree.
The only way life insurance pays is if you die. And then someone else gets the
benefits. That's ok if your wife needs some guarantee of a future, which
everyone wants, right?, but I hope to live long enough that it isn't an
issue.But it is worse for a young mother to suddenly be a widow and
not have any life insurance benefit from her husband's passing.I agree that whole Life is a POOR way to go.
Take Whole Life Insurance off the table completely. You can buy more insurance
with a term life product at a fraction of the cost of whole. Use other methods
to invest money - never do it in whole life. Another MUST is a will. When you
have your first child or before both of these should be done without delay.