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Remember one thing, if you are basing your options on illustrations of projected future performance, I guarantee you will be disappointed. Illustrations prove one thing and one thing only, paper takes ink.
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i was under the impression, and thought i have been told, that over funded whole life offered a high degree of asset protection in cases of malpractice and divorce??Good company, expensive products (overpriced if you ask me, but so is all whole life....). Just my opinion, but insurance is for death protection, not for investments. Dividends are not guaranteed.
i was under the impression, and thought i have been told, that over funded whole life offered a high degree of asset protection in cases of malpractice and divorce??
no?
mx
OK, dividends might not be "iffy", but the amount of them is. Companies can get away paying pennies just to say "we're still paying dividends". As far as the protection from lawsuits, you're correct, but that's not what you originally asked. Basically, it does protect you, but you won't see a 6% return in your cash value (as stated above).
Good luck with what you decide...NWML is a good company and you will do fine with the policy you're talking about. Just don't expect the 6% growth.
If your goal is to protect assets only, I would recommend speaking with an estate planning attorney that is familiar with your state's laws. Some states have protections for cash value in life insurance policies, some don't. Some states have a limit on that exemption, some don't.
An irrevocable life insurance trust (ILIT) can be set up to protect the assets from the claims of creditors/lawsuits/divorce, but you can't just take money out of the trust at your discretion. Consider an ILIT as setting things in stone. A whole life policy is not needed to use an ILIT.
The question would be what is the purpose of the policy for you? Death protection, shielding assets, or both? What is the specific reason for wanting to overfund a whole life policy?
OK, dividends might not be "iffy", but the amount of them is. Companies can get away paying pennies just to say "we're still paying dividends". As far as the protection from lawsuits, you're correct, but that's not what you originally asked. Basically, it does protect you, but you won't see a 6% return in your cash value (as stated above).
Good luck with what you decide...NWML is a good company and you will do fine with the policy you're talking about. Just don't expect the 6% growth.
ahhhh, okay.If your goal is to protect assets only, I would recommend speaking with an estate planning attorney that is familiar with your state's laws. Some states have protections for cash value in life insurance policies, some don't. Some states have a limit on that exemption, some don't.
An irrevocable life insurance trust (ILIT) can be set up to protect the assets from the claims of creditors/lawsuits/divorce, but you can't just take money out of the trust at your discretion. Consider an ILIT as setting things in stone. A whole life policy is not needed to use an ILIT.
The question would be what is the purpose of the policy for you? Death protection, shielding assets, or both? What is the specific reason for wanting to overfund a whole life policy? What state are you in?
yeah, see...i kind of thought my agent was saying this. wow, confusingWhy can't he get 6%? The IRR can reach 6% especially if he's over funding. The IRR on the PUA's can be even better.
WHAT?!
Why on earth would I want an ILIT for divorce or malpractice protection? What would be the point?