Originally Posted by one321
I fully plan on having enough wealth in savings and investments when we are in our 50s so we can take care of ourselves and not depend on life insurance, term or permanent.
Savings are essential and therefore needs to be dependable. Investments by definition are NOT dependable. 8-10% expected returns you may have been shown on your investments are completely meaningless.
IMO a participating permanent WLs (especially NWM ones) are a great way to accumulate your savings that grows tax-deferred and can be accessed later tax-free even before 591/2. When you have both savings and investments in place you can leave your investments alone in a down market and use your savings to fund your retirement. When the market's up you can switch. Also with proper permanent coverage you only have to plan for one life of retirement instead of 2.
And I'm figuring that if one of us does become disabled, we will still be able to pay the term life premiums.
WP on term is expensive because it can be converted into permanent and the carrier will have to come up with the big premium (as long as you are disabled). If you ever become permanently disabled, you won't have enough discretionary income to continue contributing to your investments. Converted permenant policy will be your only on-going savings.
I am certainly not an insurance expert, so do point out my errors. In the end, I'm just trying to balance the risks with the costs.
You balance your risks with guarantees that will give you "minimum" protection on your retirement plan. What's the true cost of $35 WP? Talking heads will say $35x12 months x 30 years x 8% = whatever you MAY end up with. What's the cost if you become permanently disabled and NWM pays for your permanent policy for life?
Investment is about taking a higher risk for a POSSIBLE higher reward. Insurance is about protecting your family and assets in case investment falls apart. AJMO
Life Waiver Necessary W/ Disability?
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