I can see plenty of posts in this sub where it seems everyone hates whole life insurance. I think I'm struggling with why? I bought whole life about a year ago, and I'm trying to figure out whether or not it is a good idea. Most comments here seem to say 'absolutely not!'. That being said, why isn't it a good idea? For myself, I make a little over 100k USD per year, and I put about 10% currently into a 401k. I bought a whole life 90 plan. Looking at the numbers, it appears that I should have about 300k cash value (whatever that means) at age 80 that I can pull out. I'm putting in about 3,500 US per year into the whole life plan.
The return doesn't match what I could get by maxing out my 401k, that is for sure. The argument that the insurance person gave me was that A) I'm protected against taxes when I need to use this money and B) I'm protected against needing to pull my money out of my 401k when in a down market- in those times, I can use the cash value instead.
I feel like that makes sense.....why is everyone against whole life so much? Is it just that the returns are so much better in a ROTH or 401k?
Thanks in advance for any advice, and my apologies- I know there are plenty of posts already about whole life, but I guess I'd like a little more advice on why another vehicle is so much better- the safe money argument that the insurance guy made seemed to be pretty sensible to me.
Submitted April 04, 2020 at 04:30PM by badideas1 https://ift.tt/3aUyUnr
