Epic786

2+ Year Member
Feb 17, 2015
86
12
Status
Resident [Any Field]
Hello, anyone has any advice which is better and why?
 
About the Ads

TheHungarianCPAPFS

CPA, CFP, IAR,Life Agent here to advise
Jan 14, 2020
15
3
Los Angeles, CA
www.erkfc.com
Status
Non-Student
A term life insurance is there to strictly protect your family and replenish the income they would lose due to your untimely death. Therefore, since it is a pure insurance product, the cost is less. Variable life insurance combines life insurance with investments and accumulates cash, which you can borrow in the future. This however, is for the benefit of the insurance company for several reasons: 1) They get more money from you, which they can invest in large office buildings, apartment buildings, redevelopment. 2) When you borrow your own money, you will pay interest to them again. 3) When you request the insurance, you will not get both the life insurance portion and the investment portion. You will only received the face amount of the insurance and if you have a loan against the cash value, the face amount of the insurance will be reduced. So you were actually helping the insurance company to fund your life insurance. If you had a term life insurance and an investment account with two separate companies, you will still get the face amount of the life insurance and you would still have the investment account for the benefit of your estate. Keep investment separate from the insurance part. The insurance company wouldn't be selling this if it wasn't for their benefit.
 
  • Like
Reactions: The PA Investor
OP
Epic786

Epic786

2+ Year Member
Feb 17, 2015
86
12
Status
Resident [Any Field]
A term life insurance is there to strictly protect your family and replenish the income they would lose due to your untimely death. Therefore, since it is a pure insurance product, the cost is less. Variable life insurance combines life insurance with investments and accumulates cash, which you can borrow in the future. This however, is for the benefit of the insurance company for several reasons: 1) They get more money from you, which they can invest in large office buildings, apartment buildings, redevelopment. 2) When you borrow your own money, you will pay interest to them again. 3) When you request the insurance, you will not get both the life insurance portion and the investment portion. You will only received the face amount of the insurance and if you have a loan against the cash value, the face amount of the insurance will be reduced. So you were actually helping the insurance company to fund your life insurance. If you had a term life insurance and an investment account with two separate companies, you will still get the face amount of the life insurance and you would still have the investment account for the benefit of your estate. Keep investment separate from the insurance part. The insurance company wouldn't be selling this if it wasn't for their benefit.
thanks
 
About the Ads