Liquidating distribution accounts receivable

Posted by / 15-Dec-2020 18:25

In this lengthy post, I’ll address 18 frequent myths about whole life insurance propagated by its advocates.

Whole life insurance is not the best way to protect your income, term life insurance is.

At 3.1%,

In this lengthy post, I’ll address 18 frequent myths about whole life insurance propagated by its advocates.

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In this lengthy post, I’ll address 18 frequent myths about whole life insurance propagated by its advocates.

Whole life insurance is not the best way to protect your income, term life insurance is.

At 3.1%, $1 Million now would be the equivalent of $5.04 Million in 53 years.

A whole life policy would be devastated by unexpected inflation, since the dividends are backed primarily by nominal bonds, whose values would be murdered in a high inflation environment.

That sounds great, almost like an inflation protection of the death benefit.

Except historical inflation is something like 3.1%.

Whole life insurance provides a guaranteed death benefit that is PROJECTED (but not guaranteed) to grow slowly so that if you die at your life expectancy or later you’ll leave behind a little more than the original policy death benefit.

Million now would be the equivalent of .04 Million in 53 years.

A whole life policy would be devastated by unexpected inflation, since the dividends are backed primarily by nominal bonds, whose values would be murdered in a high inflation environment.

That sounds great, almost like an inflation protection of the death benefit.

Except historical inflation is something like 3.1%.

Whole life insurance provides a guaranteed death benefit that is PROJECTED (but not guaranteed) to grow slowly so that if you die at your life expectancy or later you’ll leave behind a little more than the original policy death benefit.

Would you be willing to pay premiums that are twice as high for that? Whole life isn’t the best way to invest, traditional investments are.That cash value grows in a tax-protected manner, and you can even borrow the money in there tax-free (but not interest-free.) Upon your death, whatever you borrowed (plus the interest) is taken out of the death benefit, and the rest is paid to your beneficiary.(You get the cash value or the death benefit, not both.) This investment aspect allows those who sell this product to find all kinds of creative reasons you should buy it and creative ways to structure it.As a result of this ridiculous conflict of interest, agents can often throw out some serious myths in an effort to persuade you to buy their product, which might explain the damning statistic that 80% of those who buy this product get rid of it prior to death.Perhaps that is why Dave Ramsey calls it the “Pay Day Loan of The Middle Class.” First, a little about how whole life insurance works.

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Whenever you die, your beneficiary gets the proceeds of the policy.