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In Reply to: Re: Re: whole life posted by Clint on August 10, 2001 at 15:19:06:
I do not like to call it an investment vehicle, as it is not an investment. A better
term is savings accout, or cash accumulation, or even retirement vehicle. I think BTID
works in some instances, such as where the need for insurance can result in a very high amount
but where whole life would be very expensive. Or, in the case of a constrained family income.
However, I have spoken with many who purchased life insurance from other companies and enjoy the tax
defferal of life insurance and the consistency of return.
Where this market has its dips, life insurance will keep plugging along and building your cash value.
In addition, dividends can grow quite substantial, depending on where you get a policy, and provide even
greater benefits over and above what could be possible through term and/or mutual funds.
One thing to consider, if in the event you were disabled, what fund or vehicle would continue being funded?
Now, if you have disability income, you'd still receive a reduced benefit, making it difficult to contribute to a 401k, especially if you're not working.
Life insurance would continue. In the event of disability, provided you have the waiver of preimum rider attached, your policy will continue to grow as if you were
paying it while you're disabled on a full time basis. This is excellent for people concerned with retirement, because come the ripe, old age of 60 or 65, you can
annuitize those payments for retirement and take an income for life that can then be passed your spouse upon your death.
Variable annuity would be a good shelter after you have satisfied the 401k, IRA, and life insurance side of things. It is important to take advantage of tax deferral and tax savings
as well as any contributions available through your employer. From there, you must also have life insurance to provide for the safety and well-being of your family. If you look at life insurance
as more than protection for your family, but also as funds available for retirement, it provides duplicate benefits that you can also enjoy at something more than your own death.
Insurance is very complicated and can be arranged a variety of different ways. Term is not bad, but when it is sold out of the blue, just as if you need it without considering amounts or
for what purpose, well, the sale is haphazard, and you're not as apt to appreciate all it can do, such as retirement, etc. I enjoy taking the time and covering all the bases possible to ensure
that whatever need a client has we cover that. When considering amounts, an agent must understand what you want to provide for, then derive the amount and kind.
Not to beat down Primerica, but I came a upon a person paying over $500 for insurance at a face amount of $200,000 sold casually on a golf course for the sole purpose of need without considering amount.
When we met with this gentleman, being healthy, we knew we could get him $500,000 for roughly $350-400, significantly more, meeting his needs and at a better price. That was just a little FYI on my dealings.
Certainly everyone is entitled to their own opinion.
Thanks all.