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APY Question about rates of return on investment?

A friend is trying to sucker me into a whole life insurance policy and I want to show her exactly why this is a terrible policy. The positive that she gave me was that after putting in $110,600 over a 31 year period, and a period of letting the account "grow" for four years, I would be able to then take out $14,368 for the next 31 years, and still have $95,292 for the cash value of the account. So the benefit after 66 years would be $540,700 with an investment of $110,600. What's the percentage on my rate of return. Rapture - I'm aware that it's a terrible plan, hence why I said, "sucker me into a whole life insurance policy." I'm also aware that Term is the way to go. Dave Ramsey preaches this all the time. I refuse to sever a friendship because I believe she honestly believes in this product. I'm hoping that I can show her why it's a terrible plan.

Public Comments

1. Run and run away fast from whole life insurance. Suze Ormans show started out by saying this. These are usually sold by a family memeber or friend that was told by an online ad that they can sell insurance for commissions. They paid a bit to take a test. Do not bother telling her it's a terrible policy. This person needs the money in commissions from you desperately. It will go in one ear and out the other. What to worry about: That this company will not be around in another 5 years. ^^^ That's likely true. Do not talk to that person ever again - got it? Change the subject each and every time. A person selling this JUNK is not smart enough to understand the numbers ----- Also you don't need life insurance unless you have dependents that need your income If so, get TERM life insurance. It's the much better deal. And get it from a company - not a salesman ----- It would be feeble minded to consider whole life as a savings tool. Leave this thinking for the trash of the world. Invest in your company's 401K plan, and open up a ROTH account. In a roth you can put away 5K away a year and the moeny grows tax free. And will be tax free when you retire. If in a bind ROTH money can be used for purchase of first home without penalies - look up the rules of this first