I asked this question in the advice thread. Somebody there suggested it be broken out to it's own thread:
About 6 years ago, my grandfather set up life insurance policies on my two kids (at the time, 5 and 2) to use towards college. He lost 2 grandchildren when they were both elementary age. I think this was his way of better controlling fate?
These are "self-paying" policies. To my knowledge, much of the 6% (or so) interest they generate pay the annual premiums.
I've been doing some reading lately that although these were more in line of savings about 5 to 10 years ago, now they are frowned upon for the deferred taxes and lower returns (compared to other investment products).
It sounds like it might be in my best interest (no pun intended) to break these policies now, pay the penalties and taxes and put them in a more-suitable product (like 529)?
However, I know that it is in the agent's best interest to keep it where it is. I do not know how to interpret what he tells me (getting the truth from the bs or double talk).
Has anyone had experience with something like this?
Submitted February 05, 2017 at 12:01PM by nerd_of_gods http://ift.tt/2jPILUX
