Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Today's question is, "Is whole life insurance a good investment?" Well, if you've been on the web, you know there are a lot of detractors on this.
Whole life, as an investment, are for conservative investors, for people who want to beat at least the Treasuries, because if it had a history being able to at least on over a long period of time to do a little bit better than Treasuries.
So if you're looking at whole life as a supplemental income and it's configured correctly by using the lowest possible base amount with term writers and a paid up addition writer, that combination could be good for a very conservative, long term investor or long-term saver's mindset. And remember its tax advantage, withdrawals are basis and policy loans to gain could come out absolutely free as long as you keep the contract enforced for the policy ensured.
President, Lane Independent Agency, Southern California
Whole Life is NOT an investment. It is a protection, with many benefits. You can always risk your money in stocks or bonds. But if you want it to be safe and be guaranteed to grow, you need whole life insurance. It never decreases, and the premiums never change (you can even prepay them for life and later pay nothing) and the appreciation of a policy with New York Life can even pay the premium later, or lend you the money for college, a new home, or your retirement, tax free.
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Whole life, as an investment, are for conservative investors, for people who want to beat at least the Treasuries, because if it had a history being able to at least on over a long period of time to do a little bit better than Treasuries.
So if you're looking at whole life as a supplemental income and it's configured correctly by using the lowest possible base amount with term writers and a paid up addition writer, that combination could be good for a very conservative, long term investor or long-term saver's mindset. And remember its tax advantage, withdrawals are basis and policy loans to gain could come out absolutely free as long as you keep the contract enforced for the policy ensured.