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In Reply to: Re: Re: whole life posted by Clint on August 10, 2001 at 15:19:06:
I'll start the answer to your question of "Why would it be a bad decision to go the Primerica way".
1 - Primerica's term insurance is among the highest priced in the industry! There are much better term products (if that's your choice) at much less premium.
2 - Primerica's mutual funds carry high loads. There are much better options elsewhere.
Keep in mind that PFS in an MLM organization, which means that EVERY product they sell is going to be overpriced because they have to pay out umpteen levels of commissions.
I'm not saying the BTID is bad, just that there are better places to do it.
Hope this helps.
: : Moreover, I don't know many financial vehicles that allow you to withdraw money, income tax free and still earn interest. If you did that with a mutual fund, you'd be taxed. And, sticking money in savings account yields very low interest, only enough to stay pace with inflation. And, substantial interest earnings on savings accounts amount to income tax liability. So where would you recommend sticking the money for sometime, tax deferred and still be able to accumulate a nice nest egg? I'd certainly think life insurance, and so would more people if they knew more about it. It also helps to pass on estates and inheritances. Virtually anything can be passed on income tax free by incorporating life insurance in the proper way.
: The only objection/question I have is this: Why would you use a life insurance policy as an investment vehicle? I'm not that knowledgeable on the topic, but I'm learning.
: Why would it be a bad decision to go the Primerica way and buy term and invest the difference in mutual funds? Especially if the funds are earning much higher rates than a whole life plan. If you're just wanting to tax-shelter your money, you can always go with a variable annuity or IRA.
: Please correct me. I'm still learning.