Reply to Is a Whole Life policy for children with a disabled parent a good idea?

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Reply to "Is a Whole Life policy for children with a disabled parent a good idea?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]What is the coverage on the plan? If it's a $1M policy for life--then sure, not a bad investment, assuming the company is likely to be around long-term. But if it's only $200-$300K (as I suspect it is) you are better off investing that money.

You'll pay ~$50K over the life of the policy. At a relatively conservative 5% yield, that would give you $200K+ after 30 years. With more aggressive investments, you might have closer to $1M in that same time period. And if the child lives a normal life to, say, 70, it would grow far more.

It isn't so much about whether the child will need life insurance, but about whether this investment is a reasonable way to get that financial security.[/quote]

Whoops, I misread the premium as $280 a month. So $280 a year is only $4200. How much is the policy for? Is the company a longstanding insurance firm? That's a very low rate for a limited pay policy, so those two pieces of information are important. It might be a reasonable investment if the company is reputable and the payout is at least $100K.[/quote]

The payout is 25k.  It’s a long term reputable company.  It guarantees them the ability to buy more insurance without an exam when they’re older.  So really I’d be buying a policy with minimal coverage to make sure they can have more insurance coverage when tbey have their own children...even if they have seizures as well.[/quote]

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