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My husband and I both have $60,000 life insurance policies with "The Rock" called "variable life". It has a portion of the premiums we pay going into life insurance, building cash value AND an investment portion to build into about $250,000 once we fulfill the policy. I have done research on this and I can't decide if this is a good thing or not!! My agent says that I can take up to 10% of the total investment value tax free after 59. I can also borrow against the cash value for 1% per year. My main question is, would I be better off taking the $80 a month and investing it Foolishly? Their returns have been great- about 25% and I still want life insurance, but should I get a $200,000 term life policy for $300 a year and invest the rest?? Also, we just bought a big house and we will be starting a family soon. If this is a good thing, I will be doing the same thing with a larger policy. As far as retirement goes, my husband will have about 1 million in his retirement account when he retires. I don't know if this will be sufficient or if I should worry about the variable life policy as a retirement tool. It provides a form of tax deferred savings, and we need tax strategies and tax deferred earnings very badly. Any help would be appreciated.
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