But if you cash out the whole life policy and buy term and invest the difference in bonds...and then actually die, your heirs get both the value of the bonds and the death benefit. If you die with whole life, they just get the death benefit. Any comment on the return of the cash value portion of the policy is irrelevant if you will never actually reap the rewards. Consider this; You are concerned about interest rate risk or default risk with bonds but then accepting a -100% return on the cash value portion of your whole life insurance.The forum here is automatically biased against life insurance, without even thinking it through. I would regard the cash value of your life insurance as a bond, even better than a bond because it doesn't fluctuate down, only goes up. You can cash out in the future any time you want, but if you cash out now you are done, and it would take 20-30 years to grow to 1.5M. All the more so because you are already sitting on so much cash (why?). Plus, you have the large amount of insurance--i don't think it's such a big deal that you have to put in a little more cash each year, that cash goes straight to cash value. This isn't complicated.
Statistics: Posted by blimp — Tue Oct 22, 2024 1:13 am — Replies 52 — Views 2378
