Is Whole Life Insurance Worth It? Retirement Planning

[@ThePeakFP]

Want to schedule a consultation? Click here: app.thepeakfp.com/YTWWU

[@AbdulWahab-lw8jg]

You are doing a great job🙂

[@ThePeakFP]

Thank you so much 😀

[@Crossfitencino]

Fantastic video Really helpful

[@ThePeakFP]

Glad you liked it

[@astroman30]

I like your video. It's honest, factual and concise. The only question I have is who is the carrier offering $950 of CV after year two? Every WL policy I've seen didn't accumulate any CV after 4 years. The fees/commissions are so front loaded that they eat up a lot of the money.

[@ThePeakFP]

I believe this policy has some cash value accumulating earlier on because the policy was written on an infant (6 month old) - so the actual cost of insurance was EXTREMELY low. That is my understanding of what was going on with this policy. This was underwritten by nyife.

[@linnyh8242]

@@ThePeakFP Minors do not have extremely low cost of insurance, in fact they are rated at a little worse than non-smokers.

[@flowdaddybrad]

Insurance is tax free and very liquid when done right. A well written policy is the key here. If you’re looking for total returns I agree it is not the best option. But in a well balanced portfolio for people with high income it can be quite a valuable asset.

[@astroman30]

@@flowdaddybrad Thanks for not answering my question.

[@yuhz1m1]

Bro......Thank you.

[@ThePeakFP]

You're welcome!

[@Mjmamabear]

But during that time, you still have the life insurance that has value. It is not just an investment. You would need to add the cost of a term life policy to your calculations in order to get an apples to apples comparison. Right?

[@ThePeakFP]

Yes that is absolutely correct. For an apples to apples comparison we would really "pay for term and invest the rest" meaning pay the cost of term life insurance for an equal death benefit amount, and invest the rest of the proceeds. In most cases, the cost of term life insurance to cover the same size death benefit as a whole life insurance policy would be in the single digit dollars per month, depending on the age of the purchaser.

[@KyleBoucher-x7l]

The problem I have with this is that it shouldn't be an apple's to apple comparison as it is NOT an investment. Life insurance is not meant to replace investments but work in tandem with them (EY Study). You are also forgetting to mention any want or need for legacy planning.

[@ThePeakFP]

Would you say that at the very least it is frequently pitched as an investment? If you polled 1,000 people who have been pitched a life insurance policy and asked them "yes or no" to this question I would bet that they would say yes it was pitched as an investment alternative... But this is just my anecdotal opinion and advice.

[@yuhz1m1]

@@ThePeakFP it was pitched to me as an investment. The life insurance aspect of it was minimized and the investment aspect of it was the centerpiece of the pitch: "an investment plan with an insurance piece to it".