Info/Advice On Equity Index Universal Life Insurance

I am not a financial adviser, but I have done a little reading on the subject of insurance and investing. Whole-life insurance is basically an investment vehicle - you pay the insurance company, they invest the money in mutual funds or stocks or whatever, they take a commission, and in 20 years you have a nest egg set aside. In one sense it is a way to force yourself to invest the money, but on the other hand, you can almost be guaranteed that you will not receive the same rate of return as you would have if you'd just invested the money on your own. The rate of return on the policy you're looking at is about 5%. The rate of return on just about any mutual fund is higher than that by quite a bit over that same time period. I think it would be a good idea to talk to an investment advisor (if you have a good tax guy, or go to Fidelity.com or somewhere like that to do some research).

Term life is the way to go for insurance for adults. You should make sure your policies are renewable and convertible.

Also, the book I read on financial planning that really laid things out clearly and in a way that us non-mathematical types can understand is The Wealthy Barber by David Chilton.

Good luck!

I have heard very negative things on Universal Life Insurance. There are much better ways to put money away for your child's education. The most common are 529 plans or UTMA/UGMA. We chose an UTMA incase our child chooses some type of education other than college (trade school, art school, etc.) When you factor in inflation and tuition increases, $50,000 would not go very far at all! There are easy online calculators to do this. We chose the extreme side for planning ahead and calculated the future costs of Stanford, it was estimating to be $125,000 per year in 15 years!!! So, I think you should explore other options. Even a conservative mutual fund gets much better returns than the Universal Life Insurance and ban CD's.
Good luck!
And in my little opinion now is a great time to buy into mutual funds! So check into 529 education funds and UTMA/UGMA accounts for your child.

RIP OFF! Universal life insurance is on of the WORST financial products out there. Insurance agents push it because they get huge commissions on it. Ask about the fees that the insurance company takes. The returns will NOT be what you expect.

See Dave Ramsey's take on it:
http://www.daveramsey.com/the_truth_about/life_insurance_...

http://www.associatedcontent.com/article/117386/whole_lif...

Hi!

After reading all this information I called my Financial Advisor...i have Whole Life Insurance with a fixed cost that actually goes down every year and never expires! I honestly have the most trustworthy Advisor and I trust him with my life and my daughters future. Luckily its my hubby's brother in-law and all around just a good valued human being. There are a lot of bad bad bad advisors (my Hubby's best friend was also one and he's bad news! GROSS!) who are thinking of their pocket books and not yours. Please do research or if anyone has questions i promise you will trust Trenton right away. i have a gut feeling about people and he's one of the good seeds. He explained to me about taxing, what gets taxed now, what gets taxed later...how to invest and where to start putting your money, next steps etc. I feel confident my daughter will be well taken care of.

Trenton Mason #: ###-###-####

I asked my husband about this (he is a financial adviser) and he thinks its a pretty good deal. He said "you will have life insurance on your son which a mutual fund will never offer."

He also says it is likely you could have 1 million when your son is at 65 years but 1 million won't have the same value at that point. The rates that insurance products have are usually better than what you can get with a CD. Saving money is always good and you can always make adjustments down the road. You don't have to be tied to this for life. Some questions he suggest you ask is:

How long the surrender penalty is?
What is the minimum return?

If you need any other financial advice, let me know and I will give my husbands phone #. He will give you an unbiased opinion. Good luck!

Hi,

I used to be a life insurance agent. What I learned from my experience was that any life insurance, term or whole/universal life, is a financial product designed for you to hold it until it expires because ONLY by holding it until it expires would it give you the maximum gain out of this financial product. There is usually very minimum downside risk involved as the return is usually pre-calculated taking in the worst and the best economic
scenarios in the past decades and using it to forecast
the economic scenario for the next DECADES. It is a
valid and valuable financial product for anyone to own,
even for a baby, because death can and does happen to
a baby and medical and funeral expenses can add up.
So with everything being said, you and your husband
need to take a hard look at your current financial state
and also your income potential for the next 20 years
to decide how much you can realistically and comfortably
afford to put into life insurance policies months after months for the next 20 years, the longer you can keep
funding it, the higher the rate of return. Right now,
with one child and two income, you can keep doing $130/months until 5 kids and both spouses laid-off, right?
It is a marathon financial product, you want to
keep it going as long as you can at the most minimum premium you can comfortably set aside consistently year
after year, because the getting the death benefit from
it is how you maximize the return from this financial product. Don't pay attention to the cash value in the
policy, you don't want to draw down your cash value
because it will decrease your benefit. It is an
INSURANCE product, keep it going until it has served its
purpose, which is INSURANCE against death for the benefit
of the people you live for, be it your children, your parents, or your causes for charity. You can always
pay more to increase benefit later, just make sure your
policy is flexible for you to do it. If you need
a good life insurance product and/or a good agent who
can explain all this to you. Feel free to email me.
Also, given a choice, you want whole life. Whole life
never expires. Universal life usually has an expiration
date, it could be age 80, 85, 90, 95, 100, 105. If
it is age 80 and you fund it until 80, until it expires,
you don't get a penny when you pass away at 81.