Life Insurance ****** *******s

[Curly Bill]

A couple of years ago I invested in a Whole Life insurance policy, more for the investment aspect then for the life isurance. It does have a $200,000 payout upon my death, but here's the thing: I'm 41 years old and in good health, I currently have no spouse, and I have no kids. Currently my mother is my beneficiary...

To date I have paid in about $5,600 in premiums, and the cash value of my policy is currently about $3,600, an obvious loss of $2,000. I understand that it will be awhile before the cash value of my policy catches up with the amount I have paid in, but more and more I am beginning to think that I would be better off getting out of this and doing something else with the money that has been going to this. In other words as an investment vehicle with an eye towards retirement Life Insurance may not be the best option?

I would be interested in what you guys think, especially those savy investers among you.

[jk the sooner fan]

how old will your mother be when the cash value of the policy reaches maturity?

that just doesnt make sense to me that you've got a whole life policy with your mother as your beneficiary

seems like a term life policy would be more appropriate, there are better ways to invest your money - imo

[Curly Bill]

I'm not sure when the policy reaches maturity, not having all my policy papers handy, but she'll be pretty old.

I didn't do it so much for the insurance part as for the investment part, which someone convinced me was a good way to go. I have just about decided that this person was full of crap, but before pulling the plug I need to be sure.

[Frozen Sooner]

If you were using it primarily as an investment vehicle without regard to the insurance part of it, there's a few questions your agents should have asked you ahead of time.

First of all, if your employer offers a 401(k) plan, are you maxing out what they'll match to? If not, then you should do that before considering a whole life policy.

Secondly, are you maximizing your contributions into a Roth or Traditional IRA? If not, again, the whole life route may not be the best way to save for retirement.

I'm not one of the "all whole life is bad" herd, but it's not a recommendation that I'd make to the vast majority of the population.

Frankly, with no wife and kids, I wouldn't bother with life insurance with a face value of anything more than your negative net worth (if your net worth is, in fact, negative) plus enough to cover your funeral expenses (which are higher than most people think.) Possibly enough to pay for your mother's long-term care if she doesn't already have that worked out. Otherwise? Who cares? Dying with a million dollar estate and no heirs is kind of worthless, you know?

Basically, it sounds like your agent didn't do a good job of complying with SEC Know Your Customer requirements.

[Scott D]

Otherwise? Who cares? Dying with a million dollar estate and no heirs is kind of worthless, you know?

Dear Sir,

I hate you.

Sincerely,

The tree that was given itself in a man's will.

[Curly Bill]

First of all, if your employer offers a 401(k) plan, are you maxing out what they'll match to? If not, then you should do that before considering a whole life policy.

I have a 403-b (public school employee) that is not matched by the school, but is something I could put the money going into the life insurance into.

Secondly, are you maximizing your contributions into a Roth or Traditional IRA? If not, again, the whole life route may not be the best way to save for retirement.

This is what I feel like I should probably be doing, in that the school does not match 403-b contributions.

..

[Frozen Sooner]

yeah, probably. A 403(b) or TSA can be decent depending on your options.

[olevetonahill]

Cancell that crap and Buy Natty stock
Just sayin

[Curly Bill]

Cancell that crap and Buy Natty stock
Just sayin

Just been doing a little more research on my own, and well...I think you're right! :D

by the way: I saw a person on Ebay yesterday with the handle: nattylight1. That wasn't you was it? ;) They was biddin on gold/silver coins

[olevetonahill]

Just been doing a little more research on my own, and well...I think you're right! :D

by the way: I saw a person on Ebay yesterday with the handle: nattylight1. That wasn't you was it? ;) They was biddin on gold/silver coins
No But I like that Name

[Frozen Sooner]

If you were using it primarily as an investment vehicle without regard to the insurance part of it, there's a few questions your agents should have asked you ahead of time.

First of all, if your employer offers a 401(k) plan, are you maxing out what they'll match to? If not, then you should do that before considering a whole life policy.

Secondly, are you maximizing your contributions into a Roth or Traditional IRA? If not, again, the whole life route may not be the best way to save for retirement.

I'm not one of the "all whole life is bad" herd, but it's not a recommendation that I'd make to the vast majority of the population.

Frankly, with no wife and kids, I wouldn't bother with life insurance with a face value of anything more than your negative net worth (if your net worth is, in fact, negative) plus enough to cover your funeral expenses (which are higher than most people think.) Possibly enough to pay for your mother's long-term care if she doesn't already have that worked out. Otherwise? Who cares? Dying with a million dollar estate and no heirs is kind of worthless, you know?

Basically, it sounds like your agent didn't do a good job of complying with SEC Know Your Customer requirements.