Looking For a Whole Life Policy

[DHK]

Self-completing in the event of disability too!

 

[xrac]

Self-completing in the event of disability too!

Forgot that one!!

 

[Larry Tew]

All good points. Here's a chart I posted in another thread. (2nd post in the thread).

IUL Vs. 529 - Opinions?

 

[rex]

If u have a whole life policy with substantial cash value then it is very unlikely u would qualify for financial aide.

 

[LGilmore]

REX?
"If u have a whole life policy with substantial cash value then it is very unlikely u would qualify for financial aide."

Sorry no, they do not count WL Cv's when computing financial aid. Had over 6 figs in Cv's when my kids went. A very nice surprize that FASFA doesn't count it towards contributions. So Sir, you are incorrect on that one.

 

[rex]

REX?
"If u have a whole life policy with substantial cash value then it is very unlikely u would qualify for financial aide."

Sorry no, they do not count WL Cv's when computing financial aid. Had over 6 figs in Cv's when my kids went. A very nice surprize that FASFA doesn't count it towards contributions. So Sir, you are incorrect on that one.

That's not what I am saying. I'm saying if u can afford such a policy, likely u have other resources that do count and thus it isn't likely for most folks to get this benefit.

 

[LGilmore]

Rex?
"That's not what I am saying. I'm saying if u can afford such a policy, likely u have other resources that do count and thus it isn't likely for most folks to get this benefit. "

Rex, has anyone ever explained the time value of money to you? While thank you for implying I'm rich, and you're the first to do so, Time makes the amount of money needed smaller.

I didn't buy my policies a couple years ago. I bought my policies a couple decades ago. Big difference in cost.

 

[rex]

Glad it has worked for u, however if several decades means more than 1 then again it won't apply to most people sending their kids to college. Several would imply at least 2 which means people would be buying this 3 yes before having a kid, doesn't seem realistic for a college saving plan especially since for many they themselves would still be in college.

 

[Bluefin646]

Gents,
Again greatly appreciate each and ever response!
Now, we all are aware that stock mkt is risky. However the assumption that the muni mkt is triple A and super-safe isdead wrong. There hasnt been a time in the last 8 decades that saw more pressure on towns/countys/states. Oh yeah, federal budget upside down as well. What did divys look like inthe 30's and how has portfolio makeup changed over the last 80 years. Ie cant expect them to perform the same if mix of investments is different. A bit of a history lesson, if someone has the answers; but i feel could be very informative for group.
Thx again,
Step

Rex, i get your pt, for most people, if they can afford wl, they would never be elgible for finacial aid in the first place. I think thats accurate statement, for majority of families, but not all.

 

[BNTRS]

Glad it has worked for u, however if several decades means more than 1 then again it won't apply to most people sending their kids to college. Several would imply at least 2 which means people would be buying this 3 yes before having a kid, doesn't seem realistic for a college saving plan especially since for many they themselves would still be in college.

Why not own life insurance before you have kids? The sooner you purchase WL the better the deal. But in addition to that, you don't need several decade for this to work. Everything I've detailed can be done in a shorter time period than 2 decades. Sure the IRR is better the longer out we go, but it's not just about IRR (see previous posts).

Additionally, WL can be used as a place to put cash so as to remove it from financial aid consideration (i.e. people with assets do this).

In any event we're majoring in the minors here. Not being considered by the FAFSA is only one perk (a minor one at that). The leverage-ability is way more important. Would you rather dump all the money out in the 529 or use the purchasing power the WL policy gives you while continuing to grow the asset?

Lastly, I've worked with plenty of parents who could afford WL and still got financial aid.