Home Life Insurance Why the wealthy buy life insurance

20 COMMENTS

  1. Wealthy people buy whole life insurance because they've maxed out their other tax advantages accounts(IRA and 401k), unless your are maxing those out, you are losing money by buying anything other term life.

    Yes you have to pay taxes on them(unless you do Roth) when your withdraw later on, but the fact that you made a far far far higher return than you did with life insurance. Don't let the tax tail wag the investment dog. Yeah, you aren't paying taxes on your life insurance gains, but you'll see much lower gains than in stock ETFs

    His explanation of losing money in stocks is just stupid

  2. I heard of permanent insurance to where u put so much in and borrow from it without getting penalize for it.Like being your own bank.Especailly for big things like cars or a home .Down payment or pay it off.

  3. whole life insurance policy’s cash value is not added to the death benefit if you pass away; it is kept by the insurer so you need to either "use it or lose it".

  4. Great information! i first took notice to whole life insurance when my paternal Grandmother passed away and left me a lump sump from her whole life insurance policy. it was an absolute surprise especially because i never had a relationship with my father or his family/Since then my Husband and i have both purchased whole life insurance to leave for our four children the monthly payment is worth because i have first hand knowledge that the money can be very resourceful for your love ones it helps out a great deal!

  5. How can you have no market loss if it’s tied to the SP500? Obviously the death benefit doesn’t change but if the policy isn’t properly funded it could lapse. If this is referencing a whole life policy I find it hard to believe that you could use the SP as an index, that would be more of a variable annuity contract. If you could explain more I would love to learn my friend. Thank you.

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