Good Reason For Whole Life Insurance Quotes?
May 30, 2010 by
Filed under life insurance quotes
I have a whole life policy, through the Nights of Columbus. There is a respected financial advisor, Suze Orman, who seems so adamnant that whole life is not a swift move. She makes it sound as if there is not one reason to own whole vs term. Are there any good reasons for owning whole?
No Your good.
Ms Orman proves that you can’t believe everything that you read. It is obvious to me that she has taken a position without fully understanding what she is talking about.
Term life insurance is a good product for what it was designed for, which is tempory insurance to protect for a short term or during times of limited finances.
Those that think term life insurance is the only right product are operating under the assumption that it is impossible to create a good whole life policy. This idea is generally backed up by making comparisons of dissimilar products. To support their reasoning they always compare a whole life policy that has underlying guarantees with a combination of term insurance with a sidefund that is without any guarantee of return of investment.
If they were to do their job properly, they would compare policies like your Knights of Columbus whole life with term insurance and bank savings. Or they could compare term insurance with mutual funds with a variable life policy. However, were they to do so, they would prove that the whole life policy eventually would blow away “buy term and invest the difference.”
It appears that people such as she fail to realize that the mortality charges that make up all life insurance are relatively the same, and these charges are compensated for by earnings in the whole life policy that are never taxed. Term premiums, on the other hand, are always paid for with after-tax money.
In short, if a person has the means to buy insurance and invest, s/he will get a better long term result with a competitive whole life policy. Term life insurance is best used to provide protection when there is not enough discretionary money to buy the needed amount of life insurance as whole life.
If you want more information,You can refer to this blog which show you an article about Affordable Term Life Insurance Quote and Term Life Insurance Quote :
Affordable Term Life Insurance Quote Online:
http://affordable-termlife-insurancequote.blogspot.com
How to get The Best Term Life Insurance Quote ARTICLE
http://term-life-insurancequotes.blogspot.com
Affordable Term Life Insurance Quote VIDEOS
http://affordable-termlife-insurancequote.blogspot.com/2009/05/where-to-get-affordable-universal-life.html
The Best Term Life Insurance Quote VIDEOS
http://term-life-insurancequotes.blogspot.com/2009/05/term-life-insurance-quotes.html
Definition from Answer.com
http://www.answers.com/topic/term-life-insurance
Hope that helps, post back if need be- regards- Richard Man U
Yep, she’s not the only one.
There are two good reasons for owning whole life:
1. If you own a business, like a family farm, and you want to pass it down the family, you need the whole life to pay your estate taxes, so the family doesn’t have to sell the business to pay the estate taxes when you die.
2. If you have a very large estate, and you want to avoid paying estate taxes to Uncle Sam, you can buy life insurance to pass money, tax free, to your heirs, in many cases.
If you have either of these situations, then you really need to also be sitting down with an estate planner.
Me, I’ll never be a multimillionare, and I’m ok with that – but I don’t need life insurance after my kids are grown and out of the house. Me and my husband, we only own term.
When you run the numbers, you’ll see that “buy term invest the difference” puts a whole lot more money in your pocket, 30 years from now.
**People who “invest” in whole life for the cash value, haven’t run the numbers. When you automatically ‘lose’ 90% of the money you pay in to the insurance company, year in, year out, that’s a pretty rotten return. Life insurance is NOT NOT NOT a good investment tool. It’s a DEATH PLANNING tool, or an estate planning tool.”