June 24, 2013
Whole life insurance is sold as part insurance and part investment? Is this a wise option? Why or why not?
Whole life insurance is sold as part insurance and part investment? Is this a wise option? Why or why not?
Whole life insurance is not a wise investment because of the high amount of fees. The reason you will most likely get sold whole life rather than the much more attractive, term life insurance, is because the salesman will benefit much more from the higher amount of fees from the whole life insurance policy.
Well said, Katherine. Let’s recap. Whole life is “sold” to unsuspecting individuals who are uninformed about how terrible this type of investment has performed. The high commissions and the high fees come out of YOUR bottom line. Stay far away from whole life insurance. If you currently have it, consider replacing it with a much cheaper term policy at online term clearinghouses places like term4sale.com or accuquote.com. Consider an ART or level term policy that fits your needs. Pick up the new policy BEFORE canceling the old policy and only buy a life insurance policy if you need one. Millions of Americans do not.
This will free up money that you can invest efficiently with vangaurd.com. Select the index funds or Target Date Funds that fit your needs. In the meantime, stay far away from those commission based life insurance salespeople. Knowledge is POWER!!!!!!!