Thread: Life insurance.
View Single Post
Old 06-17-2022, 05:11 AM
  #14  
Myfingershurt
Gets Weekends Off
 
Joined APC: Jul 2015
Position: MD-88 FO
Posts: 1,558
Default

Originally Posted by silviastar View Post
Can you tell me why is it so expensive?
Well because death is a sure thing. Nobody’s gonna live forever. Term life is a bet that insurance companies make that you won’t die before the end of the policy. While life doesn’t end unless you stop paying for it. So, no matter when you die you’re family will get paid. And unlike term life it also has a savings component that builds cash value in after tax dollars that grows tax free and can be borrowed from tax free. And you don’t even have to pay the loans back if you don’t want. The pan will just come off your death benefit. Pacific life even offers a whole life plan that after ten years of premiums you can just borrow against the death benefit to pay your premiums and build your cash value faster. It even as an option for market based plans with a risk index. Lots of people use whole/universal life policies vs. a Roth IRA because they have no income limits and if set up correctly no funding limits. Whole life is not quite the devil Dave Ramsey makes it out to be if it’s set up correctly and you commit to it.
Myfingershurt is offline