No. of Recommendations: 2
You also have a choice too of whether to use enough of your after-tax dollars to pay for the insurance, or . . . .you can pay for some of it with pretax earnings on amounts you choose to deposit with the insurance company.

Almost everyone chooses the latter these days. If you think not . . . just ask around and see who actually buys yearly renewable term insurance.


I'd venture a lot more people get life insurance through their company plans, and don't have 'whole life' insurance.

You're trying to tell us, that for the first umpteen years, you pay in extra, out of taxable dollars, and let the insurance company invest it, at below market rates, to fund your insurance partially later?

Heck, you could just as easily invest it in a tax friendly mutual fund, or your own IRA, and do a lot better.

Many people who get suckered into whole life at 25, with 30 or 40 year term, often don't need the life insurance after the kiddies are gone, or if they already have a nest egg of multi=millions...it is simply a big drain on their income, with little return. Anytime there is a middleman (or lots of them in the case of life insurance), they are going to take their cut, and take it each year. Now, just how much does a life insurance salesmen get each year? for at least the first five or ten years? Is that why many life insurance salespeople can essentially retire after 15-20 years collecting the residuals on all the pollicies they have sold?

Most folks get life insurance through work. It is term. Part is often paid for by the company, and the rest is available at very low group rates.

Many singles get the pitch to 'sign up young'. For the 1/3rd that don't get married, or stay married, it is a total waste.

Life insurance is an oversold product, often mis-sold, and wrapped in all sorts of 'mystery' to sucker in gullible folks with scare tactics in many cases. It's marketing.

A lot of insurance policies sold 30-40 years ago, after inflation, are essentially teeny weeny things....with the 15% inflation in the early 80s, you would up with $10,000 equivalent life insurance....

t.




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