Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: ZZFly One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25318  
Subject: Re: 401k vs. variable life insurance Date: 2/2/2000 10:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<<The reason for the HARD sell is the 6% sales charge. These products pay the sales people very well.
I like Badgers advice and agree with it. Also the Mailman makes some valid points as well.
Heres my opinion.
Life Insurance is not a vehicle to be used for tax savings or investments.>>

Correct, life insurance as an investment alone is not superior to the advantage found in a qualified plan - that is during the first few years. But the key in the case presented is that the individual is mid 30's with small children - he has a long term life insurance need. A long term need is best matched with a long term asset - Finance 101 - e.g. permanent life insurance - not term insurance.

<<I would get different quotes from 4 or 5 companies.
I would look at getting a term policy. Maybe 30 years. This way, after the term, your kids will be out of college and on their own (Hopefully!) There will be little need for a large policy if your investments do well.>>

What about if the person gets disabled - where will he get to money to invest in a qualified plan - he will be no longer employed?


<<Of course your financial planner won't agree, he won't get paid on this.
Click on the personal finance section of the Fool or type insurance in the search box.>>

Well as a regestered investment advisor - who can charge fees - and who has an insurance license - I suggest that you stick to what you know best and not give advise which may cause someone harm


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement