No. of Recommendations: 14
You may have a life emergency, such as your daughter contracts a rare disease, the cure for which is to be found only in a teaching hospital in Australia. ;-)

There was actually someone at my church that this happened to. He borrowed against his life insurance policy.

As I explained, in my 28 year career, I managed through 5 years (18% of my career) of no/lower income, and didn't have to liquidate any retirement funds, so not all life emergencies would require liquidation.

Yes, I suppose a catastrophic disease could make me liquidate retirement funds. But I would go through a lot of other resources first, before even considering touching my retirement funds.

But the cost of ending up with potentially so much less in retirement funds because of the IUL fees, caps and lack of dividend credits seems like I would be giving up a lot of reward to protect against a minimal risk. The risk/reward trade-off seems slanted to reward the insurance company, not me.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.