Your Opinion on My WL Policy

[kaviprad]

Hello!

I really enjoy reading your informed opinions. I was looking for you opinion on whether I am doing the right thing here.

I have 2M whole life policy w NWML which I started in 2007 at age 32. It was underwritten as preferred. My annual premium is USD 18K. I have overfunded my account a couple of times. Cash value today is USD 140K. Whole life plays an important role in my retirement plans as a fixed income vehicle. Rest of my portfolio is balanced between real estate, stocks and 401Ks. I don't have any other fixed income investments. I was aiming for a 5% pre-tax yield from age 45 onwards and life the tax deferred nature of this investment vehicle.

I plan to over fund it to the point of not needing to fund it every year and just do it with the dividends. My dividend this year was USD 8000 - 45% of my premium. I dont recollect how long it will take me to get to the point of balancing premium w returns.

I would like your opinion on whether I am using whole life the right way for my situation.

Rgds!

 

[maksim]

Well, you certainly have a great head start. =) Contact your insurance agent whomever he is now, and request a re-projection, especially since dividends might not of what they were projected to be.

A good participating WL policy is a great vehicle.

 

[xrac]

Hello!

I really enjoy reading your informed opinions. I was looking for you opinion on whether I am doing the right thing here.

I have 2M whole life policy w NWML which I started in 2007 at age 32. It was underwritten as preferred. My annual premium is USD 18K. I have overfunded my account a couple of times. Cash value today is USD 140K. Whole life plays an important role in my retirement plans as a fixed income vehicle. Rest of my portfolio is balanced between real estate, stocks and 401Ks. I don't have any other fixed income investments. I was aiming for a 5% pre-tax yield from age 45 onwards and life the tax deferred nature of this investment vehicle.

I plan to over fund it to the point of not needing to fund it every year and just do it with the dividends. My dividend this year was USD 8000 - 45% of my premium. I dont recollect how long it will take me to get to the point of balancing premium w returns.

I would like your opinion on whether I am using whole life the right way for my situation.

Rgds!

That sounds great to me. If it were mine I would hold the course.

 

[HealthGuy]

The Nwml life guys...I gotta hand it to them they do write the big WL policies! 18k per year...Maybe Im really jealous of these Nwml agents writing these huge cases...Any other agents feel some envy?

 

[Larry Tew]

Hello!

I really enjoy reading your informed opinions. I was looking for you opinion on whether I am doing the right thing here.

I have 2M whole life policy w NWML which I started in 2007 at age 32. It was underwritten as preferred. My annual premium is USD 18K. I have overfunded my account a couple of times. Cash value today is USD 140K. Whole life plays an important role in my retirement plans as a fixed income vehicle. Rest of my portfolio is balanced between real estate, stocks and 401Ks. I don't have any other fixed income investments. I was aiming for a 5% pre-tax yield from age 45 onwards and life the tax deferred nature of this investment vehicle.

I plan to over fund it to the point of not needing to fund it every year and just do it with the dividends. My dividend this year was USD 8000 - 45% of my premium. I dont recollect how long it will take me to get to the point of balancing premium w returns.

I would like your opinion on whether I am using whole life the right way for my situation.

Rgds!

How many log-in names can the same agent think up? Why do I say this you ask?

1. How many civilian consumers would think to use "NWML" instead of spelling it out?

2. "Underwritten Preferred". Right, all my clients say "underwritten" versus "issued".

3. "USD". Nice touch.

4. "fixed income vehicle". Maybe.

5. "overfunded" - no way. not a chance.

6. "5% pre-tax yield". Enough said.

Sure, you could be a long-time lurker who spends your spare time skulking around on a message board populated with insurance agents, hence you picked up some of the vernacular. I guess I hadn't thought of that. I guess I retract everything I said earlier.

 

[STIBROKER]

could be a shill......

 

[BNTRS]

There's a missing piece here that would be much more helpful in assessing performance. You state you've over-funded a few times. The amount of that overfunding is needed. Obviously $18k per year for the last 5 years wouldn't get you anywhere near a cash surrender value today of $140k, whole life is great stuff, but it's not that great.

It sounds like you are using it the right way. NML will show a lot of cash accumulation. It's not a super start on the distribution side, so good luck with that. But all in all, decent execution. If you can provide the additional information, we can detail more on how well it's working out for you.

What you're talking about, using whole life an asset in your portfolio. Is something I've discussed several times. It works, and you've got it more or less correct.

Mayb, just maybe there is an NML agent somewhere that has some idea of what he or she is doing. Besides Chuckles...of course

 

[HealthGuy]

NWML Agents, those dirty rascals are up to their old tricks! Should have known....WL rocks !

 

[lachjs789]

How many log-in names can the same agent think up? Why do I say this you ask?

1. How many civilian consumers would think to use "NWML" instead of spelling it out?

2. "Underwritten Preferred". Right, all my clients say "underwritten" versus "issued".

3. "USD". Nice touch.

4. "fixed income vehicle". Maybe.

5. "overfunded" - no way. not a chance.

6. "5% pre-tax yield". Enough said.

Sure, you could be a long-time lurker who spends your spare time skulking around on a message board populated with insurance agents, hence you picked up some of the vernacular. I guess I hadn't thought of that. I guess I retract everything I said earlier.

Way to technical for a civilian. I totally agree.

 

[Larry Tew]

Way to technical for a civilian. I totally agree.

I wonder if it's one of our resident agents. Kind of like when you read of a volunteer fireman setting fires so he can put them out and be the hero. It's hilarious.