Interested in the communities experience with this scenario..
Got a call out of the blue from a financial adviser for Northwestern Mutual, got my number by referral just wanted to have a conversation about my financial goals, etc. Had a couple conversations with him, and he made some suggestions.
What stood out to me was his suggestion for purchasing whole life insurance on behalf of my parents. I had mentioned being interested in providing for my parents (who have not planned for retirement and are only a few years away from retirement age) as they get older and are unable to continue work. I'm a 33 y/o single man with no dependents and good income, so life insurance wasn't on my radar - but I was told that I could buy a policy for my parents that would act like a vehicle to build equity, and could actually serve as supplemental retirement income, among other things.
Of course, life insurance is Northwestern's business, so the obvious potential for conflict of interest is a red flag. However, I also see on nerdwallet that NM is ranked best for life insurance providers.
I'm curious if anyone else has taken out a life insurance policy on their parents, with the intent that the policy's value benefit the parents during their lifetimes, more than any payout to survivors. In other words, is this actually a good idea for the stated goal, or is it an idea only the companies selling those policies would suggest? Is this worth considering compared to, say, just setting up an IRA for them and contributing to it?
Submitted April 13, 2020 at 06:14PM by smohyee https://ift.tt/2yYs7ed
