Considering a Whole Life Policy

[GreenSky]

Interesting discussion.

Here's my take: If you don't need a death benefit, don't buy life insurance.

Rick

 

[WinoBlues]

Is this because the 65L plan is not blended? I recently received a 65L illustration and from what I understand, the death benefit on the 65L plan is only whole life, with no blended term. Thus, the possibility of paying up additions are limited.

(I may be totally off. I am not an agent, just an engineer turned attorney that has done tens of hours of due diligence in trying to understand the enigma that is whole life insurance.)

**EDIT - that was a big step. First post after scouring these forums for the past 2 months.

Then I would definitely recommend Chuckles.

 

[Chuckles21]

Is this because the 65L plan is not blended? I recently received a 65L illustration and from what I understand, the death benefit on the 65L plan is only whole life, with no blended term. Thus, the possibility of paying up additions are limited.

(I may be totally off. I am not an agent, just an engineer turned attorney that has done tens of hours of due diligence in trying to understand the enigma that is whole life insurance.)

In short, yes. There is no blended term in a 65L contract as you have correctly understood. As I stated there is still the ability for AP's, just not the ability to drastically overfund like a blended policy allows.

 

[jdrose]

In short, yes. There is no blended term in a 65L contract as you have correctly understood. As I stated there is still the ability for AP's, just not the ability to drastically overfund like a blended policy allows.

If I were interested in cash value accumulation, wouldn't an overfunded blended term/WL policy be a much better option then?

This is essentially the conclusion I have come to after a conducting research. Sadly, none of my insurance rep friends vying for my business have suggested this option at all.

 

[arnguy]

....(I may be totally off. I am not an agent, just an engineer turned attorney that has done tens of hours of due diligence in trying to understand the enigma that is whole life insurance.)

**EDIT - that was a big step. First post after scouring these forums for the past 2 months.

OMG, the two worst professions for insurance agents to deal with! (Sorry to end a sentence with a preposition)

 

[Chuckles21]

If I were interested in cash value accumulation, wouldn't an overfunded blended term/WL policy be a much better option then?

This is essentially the conclusion I have come to after a conducting research. Sadly, none of my insurance rep friends vying for my business have suggested this option at all.

In general yes, if only focusing on cash value accumulation.

 

[Freewheelin CPA]

Interesting discussion.

Here's my take: If you don't need a death benefit, don't buy life insurance.

Rick

I don't need it now. But I imagine I will down the road. The idea here is to lock in my insurability while I'm healthy. I just don't want to have the possibility of getting a serious illness / injury prevent me from getting reasonable rates on life insurance when I actually do need it.

Is this not a good line of thought? How much more is life insurance if I were to try and purchase it down the road & did have some sort of illness?

On the upside I spent all last weekend at the lake and learned how to do gainers off a rock cliff into the water without splitting my head open

I put in a call to my agent to ask him some of the questions addressed above but hes on the road this week, which is fine, I'm not in any big hurry.

 

[jdrose]

In general yes, if only focusing on cash value accumulation.

Chuckles, I am unable to respond to your PM because I do not have the requisite 20 posts. I would be happy to take a look at any NWM overfunded illustrations you can provide though.

(Queue discussion of the merits of Guardian, MM, NYL, NWM, et al)
- - - - - - - - - - - - - - - - - -

OMG, the two worst professions for insurance agents to deal with! (Sorry to end a sentence with a preposition)

Haha, can I ask why?

 

[BNTRS]

Is this not a good line of thought? How much more is life insurance if I were to try and purchase it down the road & did have some sort of illness?

This line of thought is perfectly fine. And it can be quite a bit more expensive later on if you have health problems (and some seemingly innocuous health issues can really spoil things).

Chuckles, I am unable to respond to your PM because I do not have the requisite 20 posts. I would be happy to take a look at any NWM overfunded illustrations you can provide though.

Yuck, save yourself the time and don't

 

[bobwise23]

If you are looking for investments then you will be interested in Tax-Free Retirement. With a product called Indexed Universal Life your account grows tax-deffered but when matched with the consitant payments, you will save thousands, even millions that can not be offered by any type of IRA.