Variable Universal Life Insurance
Should I invest in a Roth IRA or Variable Universal Life Insurance Policy?
I have a 401k / unmarried, without children, but my advisor said that it is advisable invest in a variable Universal Life Policy, while I'm young (premiums are lower) so that accumulates cash value to help retirement I'll have more death benefit for later, when I'm married and have kids. Susie Orman thinks this is a bad idea and that 401k and Roth IRA are the way forward. Other people think differently. I'm confused about what to do and I wonder if people who have subscribed to a Variable Universal Life policy have seen the results of value cash when they have retired. My illustration shows about $ 600,000 cash value when I'm 70 – that is, with a yield of 12%. I wonder if I should go with this policy or use the $ 200/month it would cost to fund this and invest in a Roth IRA instead or put more into my 401k. Any advice would be to help!
First of all, your age? If you are under UL 35-39 is good business, mortality costs are minimal, and you should be able to stop payments in 20 years easily, and still have the death benefit insurance altogether. 12% of long-term return is ridiculous, look around 7% to 9% numbers. This is more likely. So is the interest-rate policy in particular that you expect to buy? What company, etc? The Roth is good as well. If you have a couple of dollars, do both! But insurance should not be $ 200 a month, too! Who is doing business? For $ 200 a month you should be able to do both if you are in the age group I'm guessing. It sounds like your financial advisor is an insurance salesman! Met Life, NY Life, or Prudential maybe? Stay away from him!
Life Insurance Facts : How to Use Life Insurance as an Investment
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A Beginner’s Guide to Buying Life Insurance (Money Matters) $1.99 No one ever wants to think about their own death, but planning for it carefully can make a real difference financially for the family you may have to leave behind. It will be difficult enough for your family having to cope with bereavement without adding money problems to the situation.If you have a family or people dependent upon you for support, one of the most loving things you can do for them … |
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The Life Insurance Handbook Term life insurance. Whole life. Variable and Universal life insurance. The list of choices for insurance products continues to grow – along with the different uses and tax implications associated with each. Despite the dizzying pace of change in the industry, every financial professional must understand the different types of insurance available – and the considerations for purchasing them.Now – … |