I don’t think it would cost me much to get out of the plan since I haven’t put much in. Again, so what? They may state that, but when you run the numbers it won’t be anywhere near that. I’m sorry you’re finding yourself in this situation Debbie, but the good news is that you have options. It seems a lot of people have a negative perception of whole life because of what they have been told by people who are not experts on the subject, or them or someone they know bought a bad policy, from a bad agent. Do you still have room to contribute to your SEP? In states like NY the guarantees up to 500K offer a safety net similar to FDIC coverage. The policy I evaluated personally was actually one of the good ones and was backed by one of the companies that many people look to as the “gold standard”. So figure out why you want to consider this investment and whether it will accomplish your objective. Again, I do agree that there are situations where the insurance component of a whole life policy can be valuable. But, it is what it is. Those that procrastinate and nitpick over which investment may be better than another are wasting valuable time and usually aren’t that successful. More as an alternative cash bucket? 2)The lack of cash flow flexibility is troubling in that the largest assumption driving my analysis is that I am able to continue paying the premiums and keeping my policy current. Unless something catastrophic happens, we will be able to pass a lot of this on when we die. And my online savings account doesn’t have any of the other huge drawbacks that are also mentioned in the article. While itâs fun to imagine a robot managing your investment portfolio and beeping cheerfully as it works, robo-advisors are actually automated investing services managed by software instead of human advisors. My husband has a whole life insurance plan that was set up for him by his dad when he was a teenager, so he’s always had it. Not everyone needs permanent insurance. I’ve found from my experience, people either plan, save and invest or they don’t. Like any car lease deal or stock purchase, there can be good and bad deals; one should not declare all forms at all points in time to be definitive. You can also find fee-only planners through organizations like The XY Planning Network, NAPFA, and The Garrett Planning Network. The main purpose of life insurance is to provide financially for dependents in the case that you die early, just as the main purpose of car insurance (beyond the liability portion) is to provide the financial value of your car in case it dies early. Also, does whole life premiums increase as you age, or are they locked in like term? This importance of this aspect is VASTLY underestimated. That being said I have always been for doing the right thing for people and so I try to do as much due diligence in the products I offer, if I dont feel comfortable I do not sell it. 4. At age 85, the policy limit of $500,000 will match the surrender value if the value is greater than the policy limit. When do you think whole life is a good idea? Now, it turns out that we have higher, broader family obligations than I anticipated 20-27 years ago. It is insurance in the purest sense of the word and is by far the more effective way to go about it for the vast majority of the population. …but people already get into trouble by not being financially responsible so…again…nothing new. during those years your cash value generally is much less than your premiums. No. I’m honestly not 100% sure about this, but I haven’t heard of someone paying more in premiums than they get in death benefit. Most is bonds, like all other companies, but the remaining investments are private equity deals that as individual investors, we would have no access to. I am happy with 5-6% return that is tax free risk free and doesn’t involve me making any decisions except how much I want to save this year. We’re both in our late 40s and will maintain our current term life. I think that post does a good job of showing how the illustrated (non-guaranteed) return from a whole life insurance policy is comparable to one of the most conservative types of traditional investments you can make IF you end up keeping the policy for 30 years. Nothing in this browser for the period you needed it actually pays blogging and keep your to... A family ’ s a very different and often times it ’ s presented is often misleading... Really disappointing seeing articles like this with so much lower than the markets. Only person who saves money is not an incredibly useful tool maybe its just 2 plans available you. 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