Dating age difference rules xkcd

The most extreme advocates may even argue that you don’t need ANY other financial products during your entire life since whole life insurance can apparently take care of all your needs including mortgages, consumer loans, insurance, investments, college savings, and retirement.

The problem is that for every use of whole life insurance, there is usually a better way to deal with that financial issue.

It only costs half as much as whole life insurance, so you won’t be surprised to learn that the agent’s commission on this sale will be far lower.

A similar whole life policy will cost more than 10 times as much, $8-10,000 per year.

That is money that cannot be spent on mortgage payments or vacations, nor invested for retirement.

As you might imagine, that commission can be highly motivating, especially given the median insurance agent income of $47,000.

To make matters worse, many of the worst policies offer the highest commissions.

At 3.1%, $1 Million now would be the equivalent of $5.04 Million in 53 years.

A whole life policy would be devastated by unexpected inflation, since the dividends are backed primarily by nominal bonds, whose values would be murdered in a high inflation environment.This can be useful for some unusual estate planning issues.However, there is a better product that provides this and is much less expensive than whole life insurance.In this lengthy post, I’ll address 18 frequent myths about whole life insurance propagated by its advocates.Whole life insurance is not the best way to protect your income, term life insurance is.That cash value grows in a tax-protected manner, and you can even borrow the money in there tax-free (but not interest-free.) Upon your death, whatever you borrowed (plus the interest) is taken out of the death benefit, and the rest is paid to your beneficiary.

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