A problem with all forms of whole life insurance is that you probably do need life insurance; pure life insurance, i.e. term insurance, is cheap during the time when you need it, which means you can easily afford to buy enough. All forms of whole life insurance have much higher premiums, meaning it may be difficult for you to afford to buy enough.
It's illogical to commingle insurance and investment. Keep them separate. Focus on buying the insurance you need, pure insurance. Don't get distracted by mix-ins of miscellaneous extra bells and whistles.
I don't personally think it makes sense to buy any products that give you partial "participation" in the stock market, provide protection on the downside, but cap the upside. (People underestimate the severe impact of capping the upside. And often overlook other gotchas, like delivering only the price index and not giving you the stock dividends). However, if you do want such a product, there are now numerous ETFs of this kind; so if you want them, you can invest in them normally. You can get them by themselves. You don't need to have them inextricably embedded into a complex life insurance policy.
It's illogical to commingle insurance and investment. Keep them separate. Focus on buying the insurance you need, pure insurance. Don't get distracted by mix-ins of miscellaneous extra bells and whistles.
I don't personally think it makes sense to buy any products that give you partial "participation" in the stock market, provide protection on the downside, but cap the upside. (People underestimate the severe impact of capping the upside. And often overlook other gotchas, like delivering only the price index and not giving you the stock dividends). However, if you do want such a product, there are now numerous ETFs of this kind; so if you want them, you can invest in them normally. You can get them by themselves. You don't need to have them inextricably embedded into a complex life insurance policy.
Statistics: Posted by nisiprius — Sat Sep 07, 2024 8:43 pm