Wednesday, August 20, 2008

Cash Value Life Insurance

Northwest Mutual Life Insurance Pushers

I have recently been accosted by several of these Life Insurance salesman posing as financial advisers.

Correct me if I am wrong but it seems that you pay for a life insurance policy that you probably will not need, especially since my only dependent is one princely pup named Oscar. While your life insurance policy gains value you can take loans out against the policy.

Would it not be better to just invest your money in similar vehicles that they utilize and purchase a life insurance policy when you actually need one?

Can anyone comment on the cash value life insurance vehicle?


Nimic said...

The whole business of insurance is a scam period. They're all banking on you never cashing in, or cashing in for less than you paid -- or they wouldn't be making any money.

It is my opinion that smartly managed investments of your own money will always outperform giving up a large percentage of money to have someone else manage it.

That is of course assuming that you can afford to spend the time managing your money.

Chief said...

I think insurance definitely has its place; but for someone with little obligation, large amounts of life insurance seems to be quite unnecessary. A quick wiki search showed that there *were* some long term tax benefits to be gained from universal life insurance. However, I think one that is a long way off from estate planning could find better areas to invest.

Winston Smith said...

I've got some pre-paid insurance that works great, and I'm going to get incccreeddibly rich. If you guys are interested, let me know. All you have to do is sell it to three other people you know, and then you start making money off the people they sell to. We are ALL going to be RICH RICH RICH!!!!

Am I the owner or the dog? You're Steve.