Anonymous wrote:You can just invest the money. Everyone gets that. But you lose out on the insurance payout, which is the risk part. You pay into a pool. Your money grows and it's yours. But there is a payout if the worst happens and that's the security part that people want.

Everyone understands that. You can buy term life insurance - if life insurance is desirable- for a young adult for almost nothing. And you can invest the rest of the money that you would have spent in the stock market. And you will be better off.

You can just invest the money. Everyone gets that. But you lose out on the insurance payout, which is the risk part. You pay into a pool. Your money grows and it's yours. But there is a payout if the worst happens and that's the security part that people want.

I recently was handed over a whole life policy my dad has been paying since 1998! The current value is like $7000 and currently monthly payment of $32. It will mature upon my death (death benefit of only $10K) or when I turn 100 and get $78,000.

I'm going to cash it in and just dump it into VTSAX.

My parents bought me a whole life policy when I was a kid. Sales man said no payments would ever be required. Fast forward to when I was a young adult and interest rates were lower and now the policy was asking me to start making payments or they would take the payments out of the value of the policy. I quickly sold that policy. Bad investment.