What if your kid is offered a scholarship for athletics or academics?
You can still get the funds back but have to pay taxes and 10% fed penalty. If your child gets a scholarship and you want to withdraw the 529 funds for personal use or non-educational use, then the same deal applies, except the 10% penalty is waived. Might not be pretty but at least the funds are not totally gone.
Winter
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You can still get the funds back but have to pay taxes and 10% fed penalty. If your child gets a scholarship and you want to withdraw the 529 funds for personal use or non-educational use, then the same deal applies, except the 10% penalty is waived. Might not be pretty but at least the funds are not totally gone.
As an insurance guy that understand what you're doing I would say go with the WL. I don't know if I would recommend that any Joe off the street go that way above the 529, but if you are smart about the funding and watch out for your MEC you will be just fine. Also, if he gets that scholarship then you have already started what will be a NICE retirement vehicle for him. You will never go wrong buying whole life, especially when someone is young and healthy.
Personally, when I have kids, I plan on buying them the biggest whole life policy that I can afford. It will always be a great thing for them to have. What happens if he gets something like umm...leukemia...at 12. Now you have made certain that he is insurable at rates that will never go up. You will have done the right thing by your boy.
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We just had a baby boy last month (also have a 2 year old daughter) and I am wondering if some of the more experienced life insurance guys could give me your advice. I would like to get a policy on him for a few reasons, gauranteed insurability, allow us to properly mourn in the event of a loss(I don't want to have to go to work the next day), and final expenses. I would also like to start saving some money for him for college, wedding, down payment on 1st home etc.. I purchased an Indexed Universal Life policy on my daughter when she was born. Would've done VUL but I didn't have that license at the time. Now I'm wondering would I be better off getting a VUL for my son and let that cash value build up or is it smarter to buy a term policy and invest the rest in a 529 plan?
I would never recomend any type of whole life.
Its best to find a reputable company like Primerica buy term.
Invest the rest and get a much better return on your money
As an insurance guy that understand what you're doing I would say go with the WL. I don't know if I would recommend that any Joe off the street go that way above the 529, but if you are smart about the funding and watch out for your MEC you will be just fine. Also, if he gets that scholarship then you have already started what will be a NICE retirement vehicle for him. You will never go wrong buying whole life, especially when someone is young and healthy.
Personally, when I have kids, I plan on buying them the biggest whole life policy that I can afford. It will always be a great thing for them to have. What happens if he gets something like umm...leukemia...at 12. Now you have made certain that he is insurable at rates that will never go up. You will have done the right thing by your boy.
If you go with whole life you will never see your cash value unles you surrender your policy or you can borrow it and pay it back with interest. Term is the way to go.
If you have a whole life policy read it carfully you will see what I am telling you is the truth.
Term is less expensive and then you can take what you are saving from not buying whole life and invest it to get a much better return. Ask any financial proffesional they will tell you the same.
I would never recomend any type of whole life.
Its best to find a reputable company like Primerica buy term.
Invest the rest and get a much better return on your money
A reputable company like Primerica? WHAT? You cannot be freaking serious!
I would never recomend any type of whole life.
Its best to find a reputable company like Primerica buy term.
Invest the rest and get a much better return on your money
If you go with whole life you will never see your cash value unles you surrender your policy or you can borrow it and pay it back with interest. Term is the way to go.
If you have a whole life policy read it carfully you will see what I am telling you is the truth.
Term is less expensive and then you can take what you are saving from not buying whole life and invest it to get a much better return. Ask any financial proffesional they will tell you the same.
Apparently your clients aren't in the same tax brackets as mine. How was your return this year?
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Originally Posted by racjac
If you go with whole life you will never see your cash value unles you surrender your policy or you can borrow it and pay it back with interest. Term is the way to go.
If you have a whole life policy read it carfully you will see what I am telling you is the truth.
Term is less expensive and then you can take what you are saving from not buying whole life and invest it to get a much better return. Ask any financial proffesional they will tell you the same.
Spoken like a true dumb_ _ _!!!!
Last edited by ProsperSBC : 03-07-2009 at 10:02 PM.
Reason: Posts merged
I would never recomend any type of whole life.
Its best to find a reputable company like Primerica buy term.
Invest the rest and get a much better return on your money
This is the post of the year. I better tell all of my clients to cash in their whole life policies and buy term. Hey mister smarty pants, when my clients cash in their whole life policies what type of term insurance are you going to sell them now that they have gained weight, have health conditions, take several meds and that kind of stuff. You are insuring a lot more than people's lives with whole life. How about their peace of mind knowing that as long as they pay the premium that their insurance will never leave them? How about this fact Jack. Over 80% of term life insurance never pays a death benefit. Term is a cheap solution for people that can't afford whole life. People like you need to talk to someone who has been in the business for about 20 years. I have only been in the business for about five years, but if I was as ignorant as you I would have been out of business a long time ago.
Here is some free advice. Learn about life insurance products and what they do and how they help people. Then select the best product for your client. It ain't always term bub.
Here is some free advice. Learn about life insurance products and what they do and how they help people. Then select the best product for your client. It ain't always term bub.
And it's almost never overpriced nonconvertible term.
This is the post of the year. I better tell all of my clients to cash in their whole life policies and buy term. Hey mister smarty pants, when my clients cash in their whole life policies what type of term insurance are you going to sell them now that they have gained weight, have health conditions, take several meds and that kind of stuff. You are insuring a lot more than people's lives with whole life. How about their peace of mind knowing that as long as they pay the premium that their insurance will never leave them? How about this fact Jack. Over 80% of term life insurance never pays a death benefit. Term is a cheap solution for people that can't afford whole life. People like you need to talk to someone who has been in the business for about 20 years. I have only been in the business for about five years, but if I was as ignorant as you I would have been out of business a long time ago.
Here is some free advice. Learn about life insurance products and what they do and how they help people. Then select the best product for your client. It ain't always term bub.
Ron Paul leads the GOP side on Pork projects in the bill
I would never recomend any type of whole life.
Its best to find a reputable company like Primerica buy term.
Invest the rest and get a much better return on your money
I would never recomend any type of whole life.
Its best to find a reputable company like Primerica buy term.
Invest the rest and get a much better return on your money
Yea! If your clients have been following this advice say for the past two years how long will it take their investments to be back at even from the hole they are in now? Do you realize there are people who will probably never live long enough to recover.
This is the post of the year. I better tell all of my clients to cash in their whole life policies and buy term. Hey mister smarty pants, when my clients cash in their whole life policies what type of term insurance are you going to sell them now that they have gained weight, have health conditions, take several meds and that kind of stuff. You are insuring a lot more than people's lives with whole life. How about their peace of mind knowing that as long as they pay the premium that their insurance will never leave them? How about this fact Jack. Over 80% of term life insurance never pays a death benefit. Term is a cheap solution for people that can't afford whole life. People like you need to talk to someone who has been in the business for about 20 years. I have only been in the business for about five years, but if I was as ignorant as you I would have been out of business a long time ago.
Here is some free advice. Learn about life insurance products and what they do and how they help people. Then select the best product for your client. It ain't always term bub.
Re: 529 or Whole Life Policy on my kids?
they will tell you the same.
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