Anyone buy whole life insurance for young adult dc?
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Anonymous
| It’s inexcusable at their age, and they can borrow against it, right? |
Anonymous
| It’s suss |
Anonymous
| ^ inexpensive !! |
Anonymous
Care to elaborate ? |
Anonymous
|
Whole life insurance is a scam.
Read what Dave Ramsey says about it: https://www.ramseysolutions.com/insurance/whole-life-insurance?srsltid=AfmBOoozNiYmQA6NgqT9ZTR-t8afd4_iND0wK3Zxjnv1tzGO27lPLjhg |
Anonymous
| Bad idea |
Anonymous
| Terrible investment. |
Anonymous
Boy, I did not think I'd ever agree with Dave Ramsey about anything. If you have the money to help your kid ensure their financial future, give them enough money to start investing in an indexed mutual fund. |
Anonymous
Nooooooooooooooo. |
Anonymous
| Despite its name, whole life insurance is not insurance. It is a mechanism for the ultra rich to avoid paying estate taxes. |
Anonymous
It's this. If you hit certain levels of NW it becomes part of your estate planning. It's also not really correlated with the stock market depending on which company you use and the exact insurance you buy, which is appealing. |
Anonymous
No. Instead buy a 30 year Term Life Insurance policy for a substantial amount and invest the difference into an index fund. Say your WL premium is $1000/m for a $200K insurance and lot of other promises, buy them a $1M policy for $100-150/m and invest the remainder $850-$900 into an index fund. Do that for 30 years and you'll be way ahead of any WL policy. |
Anonymous
I don't disagree...but your numbers are crazy off. Dave Ramsey's example for a healthy 25-year-old male for $1MM of insurance is $234/month for whole life and $29/month for term. |
Anonymous
You were right the first time. |
Anonymous
|
Suspicious to get life insurance on a kid with no income and no dependents to support with you as beneficiaries.
Honestly just put it in an account for them to use later in life |