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Slackerous Maximus
Join Date: Apr 2005
Location: Columbus, OH
Posts: 18,149
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Anyone here have a 'Full Life' insurance policy?
The wife and I just signed up for a term policy, $1M each.
I don't see the attraction of Full Life. Our plan was to carry the policy until our mortage is paid off, or paid way down. Any thoughts would be helpful. Were both 35 with a 2 year old.
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2022 Royal Enfield Interceptor. 2012 Harley Davidson Road King 2014 Triumph Bonneville T100. 2014 Cayman S, PDK. Mercedes E350 family truckster. |
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10-19-2005, 06:01 PM
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Registered
Join Date: May 2001
Location: Peoples Republic of Long Beach, NY
Posts: 21,140
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many finance consulars say term is best because the cost difference can be invested more wisely and efficently.
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Ronin LB '77 911s 2.7 PMO E 8.5 SSI Monty MSD JPI w x6 |
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10-19-2005, 06:14 PM
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Registered
Join Date: Feb 2002
Location: Planet earth
Posts: 867
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Term life is the only way to go
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10-19-2005, 06:35 PM
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Cars & Coffee Killer
Join Date: Sep 2004
Location: State of Failure
Posts: 32,246
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Quote:
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Some Porsches long ago...then a wankle... 5 liters of VVT fury now -Chris "There is freedom in risk, just as there is oppression in security." |
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10-19-2005, 06:37 PM
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Registered Cruiser
Join Date: May 2004
Location: Pursuing Happiness
Posts: 3,892
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Whole life insurance differs from term in that the premiums never rise and the former "endows" at a certain age meaning the face value is paid out regardless of whether the policy holder is alive or not. Prior to this age the policy will have a "cash value" should you stop paying premiums or wish to cash out. The cash value is calculated by subtracting the actiual cost of the insurance/admin from premiums paid to date.
Personally I have term and invest the difference myself. Way better yield. Whole life can be a forced savings plan for the undisciplined, the return is low but hey, at least youre not spending everything. Universal life is an alternative which is cheaper but with premiums that can and do rise during the life of your policy. It has the cost of ins/admin subtracted from your premiums with the balance invested in a "side fund." There are some possible tax advantages but again you are better off IMHO buying term while the risk of your death poses a major financial setback to your family IE: your the major bread winner and you have kids/mortgage. Just my .02 cents. PS: I sold the stuff in a former life.
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87' Carmine Red Carrera - Keeper 82' Silver SC - Sold 79' Gran Prix White SC - Sold 05' Black C2S - Daily driver I have never really completely understood anything. |
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10-20-2005, 06:14 AM
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Friend of Warren
Join Date: Oct 2000
Location: Lincoln, NE
Posts: 16,482
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Go with term. Whole life means just giving more money to the insurance company.
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Kurt V No more Porsches, but a revolving number of motorcycles. |
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10-20-2005, 07:02 AM
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Registered
Join Date: Oct 2002
Location: SE PA
Posts: 3,188
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It's a good test for the honesty of your insurance broker/salesman. Ask him about whole life, full life or whatever they call it these days. If he tries to sell you a policy, he doesn't have your best interests in mind, and you should find another source.
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10-20-2005, 08:23 AM
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Registered
Join Date: Aug 2005
Location: southwest Ct
Posts: 277
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I recently read an article that said only 14% of people who bought term instead of whole life invested the difference. I bought a whole policy 13 years ago and now have a very nice amount saved.When planning for retirement,try to have as many different sources of revenue as you can.This is where whole life fits in.Remember that 86 % of you do not invest the savings so who is really ahead?
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"The smaller the fine print, the larger the risk." 1988 911 coupe 2008 VW R32 2004 530I |
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10-20-2005, 01:27 PM
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