|
|
 |
 |
 |
 |
 |
In Reply to: whole life posted by joeseph on August 08, 2001 at 14:45:20:
Joe:
Everything sounded good until your planner said that when you borrow money,
even if they money did earn interest, the company still charges your a higher interest rate than then are paying you.
There is nothing wrong with whole life, as long as you are aware that they will keep your cash value when you die and subtrafct any monies borrowed from your death benefit.
Agent
: Why is whole life insurance so bad? I am 40 years old and have had a whole life insurance policy since I was 25 years old. I purchased the policy from the fee-only planner with whom I still work -- he works with my entire family. The coverage anmount has grown to $277,000 from the original $250,000, and last years cash value was $43,600 ( originally projected to be $32,000 ). The dividend was projected to be $1,000 on the original chart the planner gave me -- it really was $1278. My premium is $1800/year. The cash is guaranteed, and I never recieve a 1099 for the increases, which is nice last year my mutual funds tanked and I STILL got a 1099. $1800/year doesnt cost me anything -- I make more than enough money to pay for it. And if I can't work due to a disability -- the company pays the premiums for me. I have friend who is on total disability and can no longer work in his choosen occupation ( trial lawyer -- he lost his voice due to a neurological disorder ), and not only does he get disability income payments from his insurance company ( MassMutual ), but his life insurance premiums are paid, as well by his life insurance company ( Guardian ). He has a $1,000,000.00 policy ( death benefit ) and before his disability ( six years ago ) his premium was $12,000/year -- now he uses loans from his cash value to purchase real estate in his second career as a real estate investor. Seems like a good deal to me.
: I like my whole life policy -- I just borrowed $30,000 from my policy to buy a car. No credit check, no finance company -- and I pay myself back. My planner tells me also even if i borrow my money still earns interest! Why is this bad?