Question : What type of life insurance do you have and why you have it?
I used to own whole life insurance until I learned the hard way about the truth behind it. A life agent said cash value was a great way to build savings for retirement and that I can use it anytime. That sounded pretty great and so me and my husband bought it. About 28 years later, he died in an accident. The life insurance paid the death claim about 30 days after I filed a claim. But all the cash value was gone! With the cash value, I could of used it for my retirement.So now I got rid of my whole life and paid a surrender charge on the cash value. The mortgage is paid off and no one is dependant on my income anymore. So I don't need life insurance. I moved about $45,000 of cash value into various investments.All I have to say to people buying life insurance is do your own research about life insurance before listening to life insurance agents.
- asked by Financial Representative
All Answers:
Answer #1
Myself, my mother and brother all have whole lifeinsurance policies. We have to pay our policiesfor certain amount of years and it seems morebeneficial to us compared to a term life policy oran universal life policy. My brother started hispolicy when he was 20 and I started mine when Ihad turned 21. My brother's policy after a fewyears had built up a significant amount of cashvalue. We have it only because it is better thenhaving a term policy, the cash value isn't aregoal and it is just a perk on the side. We haveretirement accounts that meet our needs forretirement. What pushed us to buy insurancepolicies in the first place was my cousin who isan insurance agent. After my father passed away,we all jumped on the band wagon for insurancepolicies. When we grow older and have families ourpolicies premiums would be paid in full and itwill give us a sense of security for our lovedones if we were to pass away. Every time I listento my insurance agent, I make sure I take it witha grain of salt. I am sorry for your loss, and thefrustration you went through afterward to receivethe settlement you were entitled to.
- answered by kamaljot85
Answer #2
I have term life insurance, because that's whatmeets my current financial needs, and projectedfuture financial needs.Your question seems more ofa rant against whole life insurance than an honestquestion.
- answered by mbrcatz17
Answer #3
My parents always said that life insurance is onlyfor those with small children. If you have enoughmoney to bury someone, that's all you need!
- answered by njsueb
Answer #4
That's horrible that you were misled about thecash value and what life insurance main purpose issuppose to be. Well, you already know that cashvalue doesn't pay out to the beneficiary when theinsured dies. Life insurance main purpose is toprotect your income in case you die, not as a wayto build savings.Therefore I own term insurance.To be more specific, I own 30 year term with$500,000 coverage. It used to be $150,000, then myfinancial obligations increased. It only cost me$60/month. If this was a whole life policy, Iwouldn't be able to afford $500,000 coverage. Itwill cost me about $330/month. Right now, thereare people dependant on my income, so I need lotsof income protection. In case I die over the next30 years, my family will be able to maintain thesame life style for a long time. Not only that,the company I have life insurance with will showmy family how to invest the death benefit that cangenerate monthly income for the family. It is asif I'm still bringing income to the family whenI'm dead.At the same time I own term, I alsocontribute $100/month into my Roth IRA. If myportfolio continues to earn an average rate ofreturn of 10% (currently its earning 11.1% in thepast 5 years), in 30 years I can haveapproximately: $227,932. In 40 years, it can growto: $637,678.Now I sell term insurance andinvestments to all my clients.
- answered by Doing the Right Thing
Answer #5
There was nothing wrong with what you did and yes,before buying ANYTHING expensive, you better knowthe subject.There is now a rider to wl insuranceso the beneficiary will receive the cash value. Of course it costs extra.
- answered by The Rabbi
Answer #6
life insurance
- answered by gaya.0001
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measure and fulfill your financial needs
