[Phanuthier]

Originally Posted by DoubleF

What is the point of WL or UL? I have a Performax Gold (something) through Manulife that I've been funding since about 2010 or 2011 for a "guaranteed max of 15 years" to have life insurance for the rest of my life. Am I just throwing money away to the company for convenience sake then? The borrowing against and cash balance crap is all just slick packaging or something? Blah blah something cash balance, coverage grows starting from the 15 years exponentially after funding completes etc.

I'm not challenging you or angry, I'm just curious why you rarely sell it. I started funding this thing straight out of school (parents insisted) and had no idea what I was getting to (well... I still probably don't).

Is there some specific pro to it vs the super obvious con (pun not intended) of the higher costs that I'm not catching in my read through the responses in this thread?

I am in a similar position (I think I got the perfect responses here), I couldn't pinpoint what it was when I first started talking to the Metlife agent, but after some digging, I was feeling and more uneasy about this.

Here is some other references for you to make (change?) your position.


Here is the difference in plans (Term vs Permanent) : https://www.northwesternmutual.com/l...e-while-living

Living Benefits Add Value to Permanent Life Insurance

There are two types of life insurance, term and permanent, which are best known for their primary function of providing a death benefit. But if you look beyond the death benefit and understand the various options life insurance offers, you can find even more ways to strengthen your financial position.

Term life insurance provides financial protection for a specific period of time (e.g., 10, 20, or 30 years) and pays a benefit only if you die during the term. If you outlive your policy, it will expire, and your coverage will end.

Permanent life insurance, on the other hand, provides protection throughout your lifetime, as long as premiums are paid, and offers numerous additional financial benefits. Permanent life insurance policies build equity called “cash value” that accumulates over time. This accumulation of cash value, along with tax advantages available with a permanent life insurance policy, allows you to enjoy “living benefits,” including:

Some more info on permanent life insurance : http://www.newyorklife.com/learn-and...nsurance-at-23



Why not to buy permanent life insurance : http://www.foxbusiness.com/personal-...ife-insurance/

You seek only a death benefit. When the insured dies, the policy pays the face amount to a beneficiary, says Philip Cioppa, managing principal and chief investment officer of Arbol
Financial Strategies. You can buy term life insurance for periods of one to 30 years, and the sum is guaranteed.

On the other hand, the cash value in a whole life policy builds up slowly and might not yield a reasonable return unless it is held for a period of time. “It's better to have adequate coverage through a term policy than not enough coverage in a whole life policy,” adds John Thornton, executive vice president of Amalgamated Life.

You are younger than 50. Term policies are almost impossible to get after 65, says Thornton, and are pretty cheap before age 50.

You have made better, cheaper retirement investments. Whole life insurance policies build cash value you can borrow against, but can come with high fees and costs.

Term life insurance policies tend to be more affordable, says Chris Hogan, lead financial counselor of The Lampo Group. “You could put that money into a growth stock mutual fund and receive a better return for your money.”

Your health situation could change. With most term agreements, you can upgrade or change to a new policy without a medical exam, says Thornton. Individuals older than 50 and still working could opt for a term policy with a critical illness protection component, which offers lump sum payment upon the diagnosis of a critical illness as well as for organ transplants where 30 consecutive days of hospitalization are involved, he adds. The life benefit is restored two years after the individual returns to full-time employment for double protection.

Some costs of term life insurance : https://www.jrcinsurancegroup.com/be...ance-for-male/