What type of life insurance do you have and why you have it?

I used to own whole life insurance until I learned the hard way about the truth behind it. A life agent said cash value was a great way to build savings for retirement and that I can use it anytime. That sounded pretty great and so me and my husband bought it. About 28 years later, he died in an accident. The life insurance paid the death claim about 30 days after I filed a claim. But all the cash value was gone! With the cash value, I could of used it for my retirement.

So now I got rid of my whole life and paid a surrender charge on the cash value. The mortgage is paid off and no one is dependant on my income anymore. So I don't need life insurance. I moved about $45,000 of cash value into various investments.

All I have to say to people buying life insurance is do your own research about life insurance before listening to life insurance agents.

That's horrible that you were misled about the cash value and what life insurance main purpose is suppose to be. Well, you already know that cash value doesn't pay out to the beneficiary when the insured dies. Life insurance main purpose is to protect your income in case you die, not as a way to build savings.

Therefore I own term insurance. To be more specific, I own 30 year term with $500,000 coverage. It used to be $150,000, then my financial obligations increased. It only cost me $60/month. If this was a whole life policy, I wouldn't be able to afford $500,000 coverage. It will cost me about $330/month. Right now, there are people dependant on my income, so I need lots of income protection. In case I die over the next 30 years, my family will be able to maintain the same life style for a long time. Not only that, the company I have life insurance with will show my family how to invest the death benefit that can generate monthly income for the family. It is as if I'm still bringing income to the family when I'm dead.

At the same time I own term, I also contribute $100/month into my Roth IRA. If my portfolio continues to earn an average rate of return of 10% (currently its earning 11.1% in the past 5 years), in 30 years I can have approximately: $227,932. In 40 years, it can grow to: $637,678.

Now I sell term insurance and investments to all my clients.

Myself, my mother and brother all have whole life insurance policies. We have to pay our policies for certain amount of years and it seems more beneficial to us compared to a term life policy or an universal life policy. My brother started his policy when he was 20 and I started mine when I had turned 21. My brother's policy after a few years had built up a significant amount of cash value. We have it only because it is better then having a term policy, the cash value isn't are goal and it is just a perk on the side. We have retirement accounts that meet our needs for retirement. What pushed us to buy insurance policies in the first place was my cousin who is an insurance agent. After my father passed away, we all jumped on the band wagon for insurance policies. When we grow older and have families our policies premiums would be paid in full and it will give us a sense of security for our loved ones if we were to pass away. Every time I listen to my insurance agent, I make sure I take it with a grain of salt.

I am sorry for your loss, and the frustration you went through afterward to receive the settlement you were entitled to.

I have term life insurance, because that's what meets my current financial needs, and projected future financial needs.

Your question seems more of a rant against whole life insurance than an honest question.

My parents always said that life insurance is only for those with small children. If you have enough money to bury someone, that's all you need!

There was nothing wrong with what you did and yes, before buying ANYTHING expensive, you better know the subject.

There is now a rider to wl insurance so the beneficiary will receive the cash value. Of course it costs extra.

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