Whole Life Insurance Knowledge Base
What exact is whole life insurance, and how do life insurance companies profit from selling it? Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid? I have tried to do some research on my own, but I still can't seem to fully understand this matter. Any help will be greatly appreciated!
Is lawsuit protection a reason to get whole life insurance? Whole life insurance seems like a total ripoff. It's a terrible investment, comes with tons of fees, and it's not really that great of a tax deferred investment. However, I'm in a high risk profession from a liability standpoint and I hear that in Texas whole life cash value is protected from lawsuits. Is this a good enough reason to invest in whole life?
If a life insurance company goes bankrupt, what happens to whole life insurance benefits? My Dad purchased whole life insurance through AXA Equitable which is all paid for. What happens if the life insurance company goes bankrupt or their assets are under water like so many other financial institutions these days? Will the benefits still be payable? I also think it's strange that he had to pay $700 more to this insurance company as an "adjustment"(?) recently even though the policy was fully paid for a long time ago. Is this normal?
How does whole life insurance work? Here is my main question: If I have a whole life, Life Insurance Policy and the face value is $100,000 and the Cash Value is $112,000 and I die, does my beneficiaries get the $100,000 or the $112,000? Anything else I need to know about whole Life policies would be appreciated too. If my premiums are invested and the rate of return is high enough, why couldn't my cash value be $112,000 or just higher than the coverage amount whatever it is?
What happens to the dividend option term rider on a whole life insurance policy? If the cost of insurance on the dividend option term rider is higher then the monthly premium being paid. What happens to the term insurance portion of the whole life policy at that time? I have this rider now on my whole life policy to maximize my death benefit at the lowest cost but I'm thinking that either I will have to pay more premium if the cost goes up or I have to drop the rider.
What is the benefit of whole life insurance? My husband and I have been advised to buy a significant amount of whole life insurance as a safe way to invest. We have just started our family and I am a little wary. I am not really sure I understand why it would be better to do this than to invest in bonds, annuities, etc. Any ideas? answers?
What are some safe ways to invest other than whole life insurance? I understand now that term life insurance is the way to go, and then open up a Roth IRA. We are going to meet with our financial adviser and I would like to do more research, hence I'm asking you: What are some other safe ways to invest our money-- other than whole life. Is there something else that is safe that falls between whole life (ultra safe) and buying a bunch of risky stock (ultra risky)?
Should we wait to get rid of our whole life insurance policy? My husband and I are trying to cut back on expenses and want to get rid of our whole life policies. My question is: when it comes to collecting the surrender value of our insurance, would it be better to wait to cancel on our anniversary date? I wasn't sure if the surrender value builds up monthly or yearly. Thanks for your help. Thank you for your answer. However, I would prefer to get both my cash out of it AND save money by not having the premiums anymore. Keeping it really isn't an option right now.
Is there any way around the cancellation fee for whole life insurance? I have around $4,000 dollars in my whole life insurance policy. A year or so ago, I decided that this type of "investment" is not for me so I stopped funding it. When trying to "cash out" of this policy I discovered that there is a $5,000 surrender fee, which would leave me with nothing. Does anyone know of a way around this, or at least a way to contest it?
Is it recommended to buy whole life insurance for a child? A friend of mine recommended buying whole life insurance for my child. He said it was better than investing elsewhere. For example, you can get a 1 million dollar insurance which will be paid up by the time he is 18 at an annual rate of about 4500$. And this money grows to over 5 million when is 65 and is tax free. Withdrawal can be done at any time. What's the catch? Thanks everyone for the response. I see that the recommendations lean towards not buying it. Strangely enough, I was told that it is very common among families that have lived in this country for over a couple of generations and it's the immigrants who don't understand the benefits of this insurance.
Will I lose my cash accumulation value if I cancel my whole life insurance? I am realizing now (6 years after opening) that my whole life insurance policy is a bad investment. I notice on the policy there is a cash accumulation value and a cash surrender value. They are grossly different. If I cancel the policy do I only get the cash surrender value? If so, is there any way to get more? Do I just admit making a financial blunder and walk away from the policy?
Can you transfer a whole life insurance policy to another company? I am unhappy with both the performance and service on a whole life insurance policy that I've had for about 11 years. Do I have any options? I'd never get the same rates now. I was told when sold the policy that dividends could pay the premium after 20 years...doesn't look like that is the case. Also, the cash value is LESS than the actual money i have put into it. Is this normal or do I have a crappy policy?
Should I cash in my whole life insurance policy? I purchased a whole life insurance policy about ten years ago. I know, bad decision. Now I have acquired some debt from a divorce and if I cash in the policy minus any taxes and/or fees I can wipe this debt out. I still have an SGLI policy currently for 200K and can increase this after I close the other policy. Is this a good decision?
Question on dividends and whole life insurance. How do dividends work with whole life insurance. From my understanding, you can use your dividends to pay your premiums and after a while your dividends cover your premium costs all together. Does this happen? Can anyone recommend an insurance company that pays good dividends? Thanks for the help. I'm looking at the Infinite Bankinf concept and wanted to get additional information. I will be sure to talk to a financial advisor as well to see what they say.
Are these charges on my whole life insurance policy typical or excessive? I have a $1,000,000 whole life insurance policy. I'm wondering if the following charges are customary in the insurance industry or excessive? 1. The net cash surrender value is $24,990. 2. The expense charges are 15.5% of the premium. (Which seems high to me, but I never had life insurance before.)
So why buy whole life insurance at all? I've dedicated much of the past month researching life insurance. A metlife rep swears whole life is the best thing since "sliced bread" and has dedicated much of her time selling it to me. All of my research indicates to "Buy term and invest the difference" which is what I plan on doing. But I'm still curious, if the wiser choice is to buy term, then: Who actually buys whole life? Why?
Are there any whole life insurance / Roth IRA options similar to Colorado Banking? I recently spoke to an investment broker about an option offered by Colorado Banking that offers an IRA with a guaranteed interest rate where the amount you put in ($150 per month) goes toward a 80,000 whole life insurance plan and also into an IRA that would return 319,000 at the end of 45 years. I've done the math and it does work itself out, but I'm curious if there are any companies that compete with the same type of plan.
Is Gerber Whole Life Insurance A Worthwhile Investment? My son is 6 months old, and since he's been born, we keep getting sales materials from Gerber regarding their Whole Life insurance plan. It sounds great, but I am clueless about this kind of stuff and don't know if it is truly a good and worthwhile option for our son. My husband and I would like to do something for his future, but we don't have a lot of money. Is the Gerber WHole Life Insurance a good plan, or is there anything else that is better and affordable for us?
What are the pros and cons of modified whole life insurance? I'm really confused by all this insurance biz. What I'd really like to know is whether I'd be losing out alot by cashing in my whole life policy that I've had since 1985. The total death benefit is about $12,400. The cash value is $2400 which I could really use now. Would I be losing much since my job automatically provides basic life insurance to me which covers $38,000? I also have additional voluntary AD&D which covers another $38,000?
Taxes on lIquidating whole life insurance? hi, im just wondering what kind of taxes i should expect when and if i liquidate my whole life insurance. thanks! also, im single,18 and in college with a part time job.
Whole life insurance and leaving the country? When i reach retirement i plan on leaving the country USA (My relatives live overseas). If i have a whole life insurance policy does it still cover me even though i am out of the states? Does it pay my beneficiaries upon my death?
Question on interest and whole life insurance. If you have a whole life insurance plan and you withdraw money from your cash account, does the interest you pay back go into your account or does it go to the insurance company? Thanks for the help. I'm looking at the Infinite Banking concept and wanted to get additional information. I will be sure to talk to a financial advisor as well to see what they say.
Can whole Life insurance be cashed out? My father has a Whole Life Insurance policy he opened when I was born for me. IT was for 50k and I am 34 years old now. What good is it to me now? Can I cash it in for money? Should I continue to pay it? What are my options? My father insist that it is work at least half the face value. A little insight please.
What banks buyout whole life insurance plans? I have a $2mil Whole life plan. And pay around $500 a month. I am middle aged. And am looking for a bank that buys out the whole life and i write over the ending payment to them while they pay for the coverage. It is out there and it goes on alot. But just can't find a bank that openly does it. Also, what are the terms? My plan is pretty new. Does that matter? It just means a lower payout to me right?
whole life insurance policy cash in value on taxes? My wife quit her job. She was contributing around $10 a month to a 25,000 whole life insurance. We got a letter that said the cash value was around $700. If we cash it in is there a tax cost to us? The letter stated that the cash value will be used to pay the insurance cost till it is depleted then the policy would be closed. If we cash it in do we have to pay capital gains or other cost on it. Or the monthly amount she has been contributing offset it??
Is it better to have term life insurance or whole life insurance? I am 26 years old and just had a baby and want to know which insurance is better whole or term. How do I determine how much to get? Who besides my daughter if anyone should be the beneficiary? Note: Her father and I aren't married but I was considering leaving him a percentage so that he could have extra $ to provide for or daughter if neccessary - Is this a good idea?
Should I open a whole life insurance policy or a 401k first? I met with a financial consultant who told me that the 401k is the last thing I should start. She says it makes more sense to open the whole life which compounds 8% return on my money yearly and pays a yearly dividend. Which is smarter to do first?
What is the difference between whole life and term life insurance policies? My husband wants to take out an insurance policy on himself for our family due to the fact that he is the primary source of income. We have been researching life insurance policies..what is the difference between whole and term life? My husband is 8 years older than me so he wants to make sure that myself and our children are taken care of in the event of his death.
Instant Whole Life Insurance Quote Question? What are some cool instant whole life insurance quote sites you have to share? I've looked around a bit but I figured I'd ask here. Any link you can share will be appreciated.
get back what I have paid into a whole life insurance policy? I have a Northwestern Mutual whole life policy that I have had for almost two years, so, obviously the cash value is a lot less than what I have put in it. Is it possible to have them buy me out and get back what I have paid in? I have no interest in keeping this policy or transferring it to another company. I just want to get my money back. Is it possible to get what I have paid in back (instead of cashing it in for the cash value)?
Life Insurance: Variable Life vs Whole Life, which one is really better? Is Whole Life premium more money than Variable Universal Life? I asked for a Whole Life insurance quote from one of the big insurance companies around, instead the agent tries to convince me that I should go with Variable Universal Life. He said Whole Life premium is always higher than Variable Life. He generated a printout for Variable Universal Life but not for Whole Life. I just want my premium to remain fixed in my old age and dont want the death benefit to fluctuate hence I prefer Whole Life. He stated that the death benefit is guaranteed for VUL. Is it really? I have a feeling it's not and that the premium for VUL will increase in my old age since it's dependent on my market investment. I'm beginning to think that his commission for selling Variable Life is more than selling Whole Life. I'm 37 female, non-smoker, in good health. I dont believe Whole Life premium would be that much higher than VUL. Any input is appreciated.
If a life insurance company goes bankrupt, what happens to whole life insurance benefits? My Dad purchased whole life insurance through AXA Equitable which is all paid for. What happens if the life insurance company goes bankrupt or their assets are under water like so many other financial institutions these days? Will the benefits still be payable? I also think it's strange that he had to pay $700 more to this insurance company as an "adjustment"(?) recently even though the policy was fully paid for a long time ago. Is this normal?
Are there any whole life insurance / Roth IRA options similar to Colorado Banking? I recently spoke to an investment broker about an option offered by Colorado Banking that offers an IRA with a guaranteed interest rate where the amount you put in ($150 per month) goes toward a 80,000 whole life insurance plan and also into an IRA that would return 319,000 at the end of 45 years. I've done the math and it does work itself out, but I'm curious if there are any companies that compete with the same type of plan.
Should we have whole life insurance? My husband is 26 yrs old and he bought whole life insurance. I tried to tell him to get term sicne we are so young, but he wouldn't listen. Can anyone help me? i need specifics on how to explain why we just need term,but we do have kids, so maybe we should keep it?
should we cancel our whole life insurance policy? we bought a whole life policy for a couple of years ago b/c we liked the "safety" of not losing our money(the way u do w/ term)--anyway we have since learned that u don't make any money this way and it's better to take those premiums and put them in better returning investments. we already have a huge chunk of money in this whole life policy that will be down the toilet if we cancel. what should we do? can we convert it back to term?
What whole life insurance policy is best for a 24 year old? I have a policy from New York Life, but 2 of my friends who are financial planners, say Mass Mutual would be better... there's a bunch of baloney I'm not understanding i.e. guaranteed benefits, crap about withdrawing money for retirement. Altogether, it doesn't seem like I am getting that much from death benefits with the amount I am putting in ($1K/year until pretty much I'm 65). I don't want to pay forever for this... where in my policy does it say when I can stop paying?
What exact is whole life insurance, and how do life insurance companies profit from selling it? Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid? I have tried to do some research on my own, but I still can't seem to fully understand this matter. Any help will be greatly appreciated!
What exact is whole life insurance, and how do life insurance companies profit from selling it? Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid? I have tried to do some research on my own, but I still can't seem to fully understand this matter. Any help will be greatly appreciated!
If a life insurance company goes bankrupt, what happens to whole life insurance benefits? My Dad purchased whole life insurance through AXA Equitable which is all paid for. What happens if the life insurance company goes bankrupt or their assets are under water like so many other financial institutions these days? Will the benefits still be payable? I also think it's strange that he had to pay $700 more to this insurance company as an "adjustment"(?) recently even though the policy was fully paid for a long time ago. Is this normal?
Can you transfer a whole life insurance policy to another company? I am unhappy with both the performance and service on a whole life insurance policy that I've had for about 11 years. Do I have any options? I'd never get the same rates now. I was told when sold the policy that dividends could pay the premium after 20 years...doesn't look like that is the case. Also, the cash value is LESS than the actual money i have put into it. Is this normal or do I have a crappy policy?
How is the loan value of a whole life insurance policy determined? The policy may be paid and it is payable on death in the amount of $50,000. It isn't my policy - I don't have access to the terms. I am providing a service (legally) for someone. I don't want a loan - I just need to know the amount so I can document the loan/cash value of the asset. So I was looking for a percentage or formula to calculate it.
Instant Whole Life Insurance Quote Question? What are some cool instant whole life insurance quote sites you have to share? I've looked around a bit but I figured I'd ask here. Any link you can share will be appreciated.
Good Reason For Whole 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?
Is lawsuit protection a reason to get whole life insurance? Whole life insurance seems like a total ripoff. It's a terrible investment, comes with tons of fees, and it's not really that great of a tax deferred investment. However, I'm in a high risk profession from a liability standpoint and I hear that in Texas whole life cash value is protected from lawsuits. Is this a good enough reason to invest in whole life?
Can anyone tell me about non participating whole life insurance policy? I'm 24 years old and working as a professional in malaysia.Recently i bought an insurance policy from AIA.After reading my insurance policy, i want to know a few things like 1) will i'll be getting annual cash dividents? 2)if let say i want to surrender my policy after 20 years..will i'll be getting my premiums back + the dividents? 3)is this the best savings+protection policy? I'm confused..i want to ask my agent but i think its better to get opinion from other people first before consulting her. and one more thing..is it benificial to own a few insurance policies? Yeah..actually im more looking towards protection compare to $$ because i want to make sure my children have enough $$ to support their lives in case something happened to me...
I have a whole life insurance and want to take the cash value, what is the best way to do it? After reading about buying term and investing the difference, I found out that I can save hundreds of dollars a month by buying a 30 year term policy and get more coverage. With the money I saved, it gives me options on what I can do. Besides investing it, I can also pay a little more into my debt payments. I have about $32k in the cash value, after surrender charges, its $28k. I want to get the most out of my money, but not sure what to do. I can't put it all in my Roth IRA. I don't want to save it in my bank account since I only get 0.75% interest on it.
What exact is whole life insurance, and how do life insurance companies profit from selling it? Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid? I have tried to do some research on my own, but I still can't seem to fully understand this matter. Any help will be greatly appreciated!
Do I need Whole Life insurance after I retire? I am 30 yrs old. My whole life policy is less that five years old and I feel it is breaking my bank to pay monthly. It is 50k and I also have term for 500k. Why cant I drop that expensive WL policy and invest that monthly cost into a Roth. I could pay funeral expenses out of that if my term insurance ran out by then. Does this sound like I am on the right track?
Is it common to have both term and whole life insurance? Sort of a hedge? I bought them from an agent 15 years ago, somehow it seemed to balance the pros and cons of each. Now I've applied for another term, and wonder about dropping the whole life. Sonya, I didn't understand that link. Was that one page supposed to be "the basics, step-by-step". It doesn't really explain much. Sonya, I didn't understand that link. Was that one page supposed to be "the basics, step-by-step". It doesn't really explain much. Sonya, I didn't understand that link. Was that one page supposed to be "the basics, step-by-step". It doesn't really explain much.
I want Whole Life insurance and Gerber Life insurance seems good for my Newborn boy. Should I get it too? It says 8.40 for me for 10k and 3.70 for each 5k I want to go higher. For my girlfriend it says 7.80 for the first 10k and 3.40 for each 5k extra. Does this sound like a decent deal? I dont make great deals of money each month, so I just want some decent coverage if the inevitable does happen. So I guess since I am a current sophomore in college i could just get term life insurance and then convert it to whole life once i get a good job. So then would you say term is better than whole life in my situation of being a 19 year old parent?
Which Insurance company is best for Whole Life Insurance ? I have search only 2 big compnay Metlife and New York Life. I am 24 years old and want that whole life insurance for my life. So i want to know which compnay i need to choose for whole life insurance.... Metlife or New York Life ? I have quote from metlife Insurance...Agent told me my premium payment gonna be $3510.00 per anuual for $500,000.00 ( insurance amount). and i am 24 yeras old it has cash value too.. So i need some information from ur side...should i take it or ?
Is whole life insurance a bad idea for a retirement plan? I currently have a 401k with the max invested/yr. 15K + employee contribution - I'm thinking of utilizing a 457 plan, but a finacial guy said I should consider a life ins. plan for tax benefit purposes. Any suggestions appreciated!
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