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When should young people buy life insurance?

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I think you made a mistake in calling a rating a rider.

Sunday, Sep 24, 2017 at 7:47 pm Reply


Hi Greg, thank you. The source confirmed “rider” when we fact checked, but we spoke to her today and she agrees that “rating” is better. We have made the change. – the editors

Monday, Sep 25, 2017 at 11:32 am

David McDonald

I don’t think that it should have been mentioned that Janice Lee was worried that her parents – in the case of her demise – would have had to pay off her student loans. As long as they had not co-signed and Janice had been 18 when she took out a student loan I believe that the debt would have died with her. Please correct me if I am wrong.
Life insurance bought when young can be useful as “peace of mind: because one can never know the future; even in an imperfect way.

Friday, Sep 15, 2017 at 6:49 pm Reply

Randy McCord

Could not disagree more with David regarding permanent insurance for millennials. As soon as they have a savings component to their cash flow, Par Whole Life is a perfect savings vehicle. There is no need to manage a portfolio, the dividends are tax deferred, the loan privileges are guaranteed to access cash and the interest and payment terms are generous, all while the product continually produces returns. In a 20 Pay, a 25 year old is finished funding the contract at age 45 and now can devote their savings to other vehicles, now that they have more life experience, and the Cash Value Account will continue to growth with ZERO maintenance until they retire, at which time they can access the cash value TAX FREE via a 3rd party loan. Also, the ROI grows exponentially in the 20 years from age 45 to 65 since there is no more capital input but continued tax deferred dividends. Show me ANY other investment product that virtually guarantees a high return as you approach retirement with 0 risk

Friday, Sep 15, 2017 at 11:21 am Reply

Joel Adaya

@Randy McCord

Hi Randy, I am just confused and want some enlightenment. Why do clients need to access their cash value as a loan? Its there money anyway. That is the reason why whole life insurance are expensive because of the cash value (investment) on it. So why loan your own money and paid interest on it? Thanks.

Tuesday, Sep 19, 2017 at 4:47 am



Friday, Sep 22, 2017 at 1:49 pm

Ami Maishlish

I respectfully disagree with some of the statements made by Randy McCord:

1. Relating to the so-called “Participating” Whole Life policies, Randy states: “the dividends are tax deferred”. It must be understood that the so-misnamed “dividends” of “Participating” Whole Life policies are NOT at all similar to or akin to dividends on investments such as stocks. Rather, such “dividends” are a REFUND of excess premiums collected by the life insurance company. Since, most often, life ins. premiums are paid with after-tax dollars, the refund of the excess premiums collected has already been income-taxed. Taxing the same funds again again would amount to double taxation.

2. Re ROI of “dividends” on deposit, any deposit interest would be subject to tax. Moreover, as most life insures charge a base annual rate of 17.175, translating into an effective annual rate of 18.594% for monthly premiums, the “dividends” on monthly paid policies actually have a non-deductible NEGATIVE 18.594% ROI

Wednesday, Mar 7, 2018 at 1:26 pm