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buck4u writes:

I have a finanical planner that suggest that I set up a $100/mo term life insurance policy for myself ($200,000) and a $200/mo variable life for my wife ($275,000). Then take the cash value of the policies to pay tuition for my son when he goes to college in 18 years. (he is 4 months old) I just wonder if I could find a better way to invest $300 dollars a month for the next 18 years.

I reply:

Compare this deal to the possibility of purchasing level term life and investing the difference. When you do the comparison, make sure you assume the same returns that the sales pitch is assuming.

To give you a basis for price comparison, when I was in the 36-40 age cohort, I purchased a $1 million 20-year level term policy (that means that my premium is fixed for 20 years, but I accumulate no cash value) for less than $100 per month. I qualified for "Select" coverage, but not "Select Plus," so if your health history is excellent, you might qualify for even better rates. --Bob
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