250K Whole Life

[viridiana]

Hi All,

I am currently paying $2,800 per year for 250K whole life. It's been about 3 years and I started this at 26. I am 29 now. Would like to confirm if this is a good rate. I've reached out to other insurance companies before and they declined since I was too young.

Policy Name - WL Plus 100

Net Death Benefit - $256,587

Annualized Premium - $2,776.33

Annual Dividend - $459.55

Loans - $0.00

Net Accumulated Value - $1,292.86

 

[denisovich]

@viridiana Well whole life is a long term thing. Cash builds up inside but it takes 12-15 years before you see any real cash build up. You should reach out to the agent who sold you the policy and ask him what the cash accumulation looks like 12-15 years from now and then when you’re also retired. It’s a strategic plan people should have when getting a whole life policy. If you don’t care about the cash value being built just get term for a way cheaper premium. The death benefit will be low because the cash you’re building inside the policy. For term your death benefit will be high but it’s likely you’ll be paying for the insurance and never get anything out of it. With term you have to die to win. But it’s cheaper than whole life. Whole life allows you to build the cash value part of the policy and use it whenever you believe is necessary. After some years go by of course. You shouldn’t see any progression in the cash value in this small 3 year window.

 

[evanburnside12]

@denisovich

Cash builds up inside but it takes 12-15 years before you see any real cash build up.

That depends on structure. This is not necessarily true. With a PUA rider cash builds up much sooner. In the end though they get to about the same point.

 

[guacamole]

@viridiana Declined being too young?!!! Never heard of that I help put together policies for 1 year olds all the time! With out more information no one will be able to tell you if it’s good deal.

 

[viridiana]

@guacamole I updated more information. Hopefully its enough now. Thanks

 

[guacamole]

@viridiana What were you rated health wise? This isn’t a terrible costs for what you are getting but could have gotten more Db. It’s smart to have gotten young. Your cash value and death benefit will continue to grow. What was the intended purpose for this policy? Do you have beneficiaries who need death benefit or cash value accumulation that you can use any time? Liquidity, guarantees and death benefit are the main benefits to whole life so as long as you understand and those are important to you then keep it. You may consider term if you want more death benefit and if you want market participation look into variable universal life.

 

[viridiana]

@guacamole I am healthy, I don't recall there being issues. The policy is for another term of investment, and assuming one day I will have beneficiaries (getting married and having kids). I ended up learning that I also have a long term care benefit included in this package. I can use my death benefit if I end up needing to be in care when I get old.

 

[easternpresent]

@viridiana We really can’t comment without knowing the plan design. Whole life provides more than just a death benefit. Your plan could be designed to get more cash in the policy for future dividends.

Your plan could also be a short pay design.

 

[viridiana]

@easternpresent I updated more information. Hopefully its enough now. Thanks

 

[easternpresent]

@viridiana This seems like good insurance to me.

I’d be interested to see the projected CV in year 20 and at age 65

 

[viridiana]

@easternpresent My cash value at 46 (year 20) would be $69K or 35K guaranteed. Age 65 I would be at 233K or 102K guaranteed. At 55 my annual dividend would be over my payment.

 

[kimberly5150]

@viridiana Post your cost/benefits illustration page so we can see. I pay just a little over 2k a year for my $100k whole life policy I got at 25, but it’s a 20 pay meaning by the time I’m 46, I won’t have to pay anything, but the policy will still continue to grow.

 

[viridiana]

@kimberly5150 I updated more information. Hopefully its enough now. Thanks

 

[teaspring]

@viridiana That sounds good, but is it a participating policy? If no,t, then there won't be much cash values for you to utilize down the road.

 

[viridiana]

@teaspring Not really sure what kind of policy it is - i updated more information. Hope it helps. Thanks

 

[daisy_lane]

@viridiana We gotta see the illustration.

 

[viridiana]

@daisy_lane Posted more information

 

[viridiana]

Appreciate the help, I am still very new to this. Hope this additional info helps. I am getting cash value and my net death benefit increases over the years.

Policy Name - WL Plus 100

Net Death Benefit - $256,587

Annualized Premium - $2,776.33

Annual Dividend - $459.55

Loans - $0.00

Net Accumulated Value - $1,292.86

 

[ryan_russell]

@viridiana Thats ridiculously expensive. Get a term policy and put money into a Roth IRA and you will have significantly more money that you'd ever have with the cash value in that policy

 

[guacamole]

@ryan_russell It’s not expensive and will pay for itself. Roth is great but he has to wait 30 years plus to get the funds. Whole life has its advantages especially being so young. You don’t know his situation so you can’t really speak on if it’s right for him or not.