This is awesome 👍 thanks so much , interms of buying I always heard that looking at resale value is the best way to judge what to buy. For instance something like a Toyota Tacoma right now has tons of resale value, do you find this to be a viable way to buy?
-You get the death benefit much higher than what you put into the policy early on.
-You can reinvest your dividends to grow your death benefit and future dividends
-Most WL is participating and you can get fairly high dividend rate
The majority of my insurance coverage is Term because of how cheap it is. But I do have a WL that I view as a fairly safe investment vehicle with a life insurance upside if I die young. It is illustrated to have a 5%+ return over the long haul. Just the high premiums suck.
You want to find a good company with a long dividend history on their WL and if you are worried, look for a higher guaranteed minimum rate. (the rate they can't contractually adjust below).
When you say majority of your ins is Term, can you give a ratio? Considering 75/25 term/WL, as the returns on my cash value are pretty good (5% sounds similar to what I was quoted) and I shouldn't need much insurance once my Term ends in 15 years.
Personally I am probably closer to 90/10. But that is more a byproduct of being 'over-insured' with term.
The general rule of thumb people use is 10x income, I am around 15x and was closer to 20x when I purchased a large amount a few years ago. I knew my income growth was going to do well so I got ahead of it with a large term policy.
All my term has a conversion rider, and I do plan to converting some to WL in the future.
This is awesome 👍 thanks so much , interms of buying I always heard that looking at resale value is the best way to judge what to buy. For instance something like a Toyota Tacoma right now has tons of resale value, do you find this to be a viable way to buy?
Next posts hit on that a bit.
Directly to your question, depends what you plan to do after getting the car.
I have gotten Jeeps & Trucks and all have gotten to 200k+ miles. Basically drove them till the resale value is not much more than salvage.
If you are buying and plan to sell and get a new car more early in the car's usable life, it makes sense to consider resale value.
I'm actually in the process of moving into WL and would appreciate any pointers to accurate assessments of it you may have.
Personally like the tax free growth of principal but maybe I'm missing something.
cons - its expensive
Pros - it does everything it says it will.
-You get the death benefit much higher than what you put into the policy early on.
-You can reinvest your dividends to grow your death benefit and future dividends
-Most WL is participating and you can get fairly high dividend rate
The majority of my insurance coverage is Term because of how cheap it is. But I do have a WL that I view as a fairly safe investment vehicle with a life insurance upside if I die young. It is illustrated to have a 5%+ return over the long haul. Just the high premiums suck.
You want to find a good company with a long dividend history on their WL and if you are worried, look for a higher guaranteed minimum rate. (the rate they can't contractually adjust below).
Awesome, thanks!
When you say majority of your ins is Term, can you give a ratio? Considering 75/25 term/WL, as the returns on my cash value are pretty good (5% sounds similar to what I was quoted) and I shouldn't need much insurance once my Term ends in 15 years.
75/25 is likely a good ratio.
Personally I am probably closer to 90/10. But that is more a byproduct of being 'over-insured' with term.
The general rule of thumb people use is 10x income, I am around 15x and was closer to 20x when I purchased a large amount a few years ago. I knew my income growth was going to do well so I got ahead of it with a large term policy.
All my term has a conversion rider, and I do plan to converting some to WL in the future.
(https://effsigive.substack.com/p/life-insurance-basics-should-young?s=w if you are unfamiliar with a conversion rider).