as to life insurance...

I am not a big fan of life insurance companies, to me, it should only be use for one propose, is to offer a shield of protection for your family in case of emergency, and usually its not a good investment vehicle.

make sure you fully understand that insurance illustration your agent try to sale you, you must know these numbers are simply hypothetical representations of the best outcome, you should pay more attention what is the guarantee rate of return, instead of the estimated rate of return.

I think most insurance company today only guarantee 3 or 4% on money vested. I have a small whole life policy carries a 7% guarantee, but it was purchased in 1988.

and make sure you understand the different between face value and cash value, some policy's face value doesn't including your cash value, meaning if you die, whatever you had build up in the policy with be gone with the wind.

life insurance policies are usually underwriting productions guarantee by your state, meaning if the company is license to sell in your state, it is guarantee by the state, if the insurance company went belly up, state will take over, but it is only guarantee up to its face value, not its cash value.

I normally recommend a 1mil 20 year leverage term policy, accompany with a small UL or whole life policy, either 50k or 100k.

所有跟帖： 

• 回複：as to life insurance... -jy101- ♂ (5460 bytes) () 01/18/2012 postreply 19:39:54

• the only reason your agent wants to sell you a high premium poli -jy101- ♂ (176 bytes) () 01/18/2012 postreply 19:45:14

• 謝謝！分析的非常清楚！！！另外一個懶人的投資問題 -Money- ♀ (208 bytes) () 01/18/2012 postreply 19:46:59

• Buy index fund and hold long enough -naive2- ♀ (0 bytes) () 01/18/2012 postreply 19:56:52