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without seeing your policy and the numbers i cant comment on your deal but generally the results most folks get from any permanent insurance is very poor.
most bail out and spend way to much in premiums for the length of time they use the insurance.
life insurance can be as much an expense trap as an annuity and every policy has to be analyzed and scrutinized..
after all whole life insurance is really a reverse annuity. think about it.
in an annuity you give the insurance company a lump sum of money. in effect they are giving you back your own money over the years until you reach the point you got it all back. from that point on
your getting your first real dime of return as now your on their dime with each payment. depending on your withdrawl rate the first 10 years or longer may really be a return of your own money.
the irs breaks it out differently for tax purposes but in reality your living off your own money you handed them.
whole life is the reverse ,you dont have enough saved yet to fully fund your policy and self insure so the insurance company covers you on their dime in the early years. if you die in the early years
your heirs get your cash value and the insurance company coughs up the difference between what you saved up and what the face value of the policy is so your on on their dime . as you save more and more and reach the face amount of the policy the insurance company has no money of their own in the pot anymore and your heirs get payed on your dime as your pretty much self insuring at that stage. typically at age 100 many of the companies will just mail you back a check for the policy value and call it a day.
its the opposite of the annuity where the early years you run on your dime and its the later years you switch to the companies.
Last edited by mathjak107; 12-06-2011 at 04:53 PM..
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