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Is cash value life insurance worth it?

Term Life Insurance & Whole Life Insurance Discussion

Is cash value life insurance worth it?

Postby kodey » Wed Jun 26, 2013 6:23 pm

Im looking into signing up for cash value life insurance . It pays a better rate than regular ira. ANyone out there who is using it already? Is it worth it?
kodey
 
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Is cash value life insurance worth it?

Postby rowyn » Wed Jun 26, 2013 6:35 pm

Im looking into signing up for cash value life insurance . It pays a better rate than regular ira. ANyone out there who is using it already? Is it worth it?
If you're looking at this as an investment, it's crap. Run the numbers, do the math. Your "investment" portion, is a small amount of what you pay in, on top of a HUGE amount of death benefit. Your effective rate of return is likely to be way, way, way LESS than a straight IRA, if you make careful investment decisions.

Life insurance is a DEATH planning tool. Not an investment.
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Is cash value life insurance worth it?

Postby marschall74 » Wed Jun 26, 2013 6:42 pm

Life insurance might pay a better "rate" than something else, but something else doesn't charge taxes, fees and insurance costs to it. You're looking at maybe a 2% rate of return over 20 years.

AND, most importantly you generally only buy a cash value policy because you have a desire to have life insurance forever. In other words, if you only want insurance for 20 or 30 years, then you can buy a term life policy. If you want it longer than 30 years, then a cash value policy is one of your only options.

Lastly, if you have no need for life insurance, then you have no need for life insurance.
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Is cash value life insurance worth it?

Postby bran33 » Wed Jun 26, 2013 6:49 pm

It depends what you want your cash value life insurance for. If you are looking to earn quick high returns, everybody that says it is a bad investment could be right and I could agree with them.

If you are looking for long term growth, stability and safety it can still be a good option.

If you are looking for a process that will give you total control on your money, safety and long term growth then you can find nothing better.

The misunderstanding is how you classify cash value life insurance: As an investment you could find better alternatives, as a financing platform there is nothing for you to use that comes close to it.

So if you are looking for a platform to help you grow capital and you are willing to do the work and due diligence using your money to finance your needs and projects, and you invest in what you are an expert in, then you can really benefit from your cash value life insurance policy.

I started as a consumer using the Infinite Banking Concept and have been a practitioner for 7 years.
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Is cash value life insurance worth it?

Postby keefer » Wed Jun 26, 2013 6:57 pm

It depends what you want your cash value life insurance for. If you are looking to earn quick high returns, everybody that says it is a bad investment could be right and I could agree with them.

If you are looking for long term growth, stability and safety it can still be a good option.

If you are looking for a process that will give you total control on your money, safety and long term growth then you can find nothing better.

The misunderstanding is how you classify cash value life insurance: As an investment you could find better alternatives, as a financing platform there is nothing for you to use that comes close to it.

So if you are looking for a platform to help you grow capital and you are willing to do the work and due diligence using your money to finance your needs and projects, and you invest in what you are an expert in, then you can really benefit from your cash value life insurance policy.

I started as a consumer using the Infinite Banking Concept and have been a practitioner for 7 years.
for most people and situations it is a bad idea.
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