Anyone buy Whole or Convertible LIFE INSURANCE?

[Anonymous]

If so, why? Term insurance seems to be the way to go, but we are also considering purchasing whole life insurance. Anyone do this, and if so, why?

[Anonymous]

Purchase whole life if the point is not to replace your salary, but for legacy purposes. (1) if you antiicpate high estate tax, hard to know right now given congress's inaction, frequently couples with high net worth are advised to purchase second to die life permanent life insurance that will allow children liquidity to pay estate tax. (2) you want to leave a legacy to the next generation. In this case, likely should purchase in an ILIT (Irrevocable Life Insurance Trust). Most folks who purchase whole life are working with wealth advisors, estate attorneys, financial planners, etc. to design a rather complex wealth transfer approach.

If you are relying on DCUM anonymous posts for direction in this area, probably term life is the way to go. Some term has a convertible feature, which might be worth paying a little extra for. Then, if you need / want to convert to permanent insurance, you have the option available at certain time windows in the future.

good luck.