Um are you advising people that a whole life insurance plan is more tax efficient than an IRA for retirement savings?

No life insurance. And no thanks. :2 cents:

1 million. I am young but you never know what could happen.

i'm not advising people on anything. I am simply telling them what I did and the pros and cons of the different choices. I am not your financial planner, if even 1 out of 100 people who haven't done something read what I posted and it makes them want to go do something (that might even be a stretch) then their next step is to get with some one qualified to help them with it.

Less than $10K I get free from various banks I have accounts with. But as far as paying for coverage, none. I carried term when I had a dependent - $650K. But no one is depending on me and I don't feel like someone winning the lottery because I died ;)

Not even me??? :jester

OK - but just you ;)

I have my salary x 5 in life insurance...

And I have my salary x 10 in AD&D insurance... If I lose my hand(s) I'd be FUCKED...

sssh don't tell that russky

woohoo! :banana

I signed some shit Met life insurance policy back about 6 years...been paying 1,000 a month on a million dollar policy..i dont know what the fuck i was thinking.

whole life / VUL or Term ?? makes a big difference.

Honestly, i have no idea. All i know i can borrow against the money if i ever need it and when i die it goes in a trust for my family. At this point i doubt I'll ever need to borrow from it. I have multiple 7 figs that's liquid (stocks, cash & gold), and i live pretty frugal but i dont want to toss away 60-70k for nothing either.

I have renters, car and life all under the same umbrella policy. I previously paid about $275 per month for the one car and $5k in replacement coverage on my condo (renters is cheaper than homeowners so I signed a lease through my parents LOL). Then they decided to raise my rates $75 bucks through Bristol West and my independent agent told me I could sign a policy under one company and even with adding on the life it would drop it $100 from what it would have been had I not switched.

She said it was the best option, I didn't even think about it since I'm 24 and not worth much more than funeral costs at the moment. But hey, makes me feel good about myself LOL.

I don't see the point of getting money when you die.

Insurance is a con. If you can afford to pay for a crashed car why do you need it?

Put it this way. Who insures the insurers? Say you're the owner of big insurance company and you buy a new car, do you get insurance? Who do you get insurance with, your own company or your competitor? Say you choose your own company, then you are paying $1000 per month into your own bank account. If you have a car crash you pay yourself $30K out of your own bank account. It's superfluous.

I have an annuity which has actually done well in these turbulent times. I can borrow against it and repay it back at zero percent.

250k in whole life, 300k in 5 year term... will probably roll more into whole life soon

Talk to the person who helped set that up for you, and if you can't get a hold of them or don't like their explanation then find someone new. It's not for nothing, if you die your hiers will be paid. It is making money just like your other investments, actually it is doing better than cash which loses about 3% a year because of inflation. If you have a VUL then you have more stocks via the mutual funds you own in that policy.

Since you can borrow against it then it is either a whole life or Variable Universal Life (VUL) policy. There are a few differences between the two, with the biggest being the whole life is more of a fixed product, where the VUL is funded with mutual funds so it can go up and down drastically. They both give you a cash balance which is what you can borrow against and they both provide you with a death benefit. Don't "cancel" the policy or you could be hit with some tax implications, unless you really don't need it but I would talk to an accountant first before doing that. BTW when you die, unlike the majority of your other investments, the death benefit from life insurance is not taxable as income to your hiers.

What a lot of people don't understand about permanent life insurance is the "living benefits" built in because of the cash value. Where as with term life there are no living benefits, its based on you die, your hiers get paid. Well, there is exceptions if you are terminally ill and about to die and you have a term policy there are companies that will pay you the money and take over your policy but it is at a pretty big reduction to what your death benefit is.