Saving money and life insurance?

Question

My husband and I are shopping for life insurance, and are considering Universal Life. The reason being: the cash value claims to be safe from creditors and collections. We do want to save money that earns interest, but can't do it through a banks because of the many debts that we owe, collections can seize your bank account (they've done it to us before). Term life insurance seems like a waste because if the policy expires, we don't get the money back, and if we have to renew, the premium will definately go up. Does anyone (please?) have any advice regarding these two MAJOR financial decisions? (We have three children) Thanx a lot.

Answer 1

Try to protect yourself from unforeseen future accident,It is not something we like thinking about but never the less it is something that should be done.I found great ideas here.http://lifeinsurance.online-helpers.info...

Answer 2

I think you may need a term policy with a RETURN OF PREMIUM feature. It's basically a term policy but it returns 100% of all paid premiums, (if you're alive) back to you...after the tem is over.

It's not as expensive as UL or Whole. It gives you the same benefit as term...AND your money back, if you don't die!  (If you do die...your beneficiaries get the entire death benefit.)

It will give you the protection you need for you and your family... and something to show for it. (And creditors can't touch it!)

If you need a quote, I could help you with that. I'm an Investment Advisor but I also help my clients with Life Insurance. My office is in Pennsylvania but I'm registered in a few states. Either way, I could at least get you a quote.

Let me know if I could help. Take care!

Answer 3

I would recommend Equity Indexed Universal Life. It will give you the benefit of high interest rate when the market is up but you will not lose money if it is down. You can maintain payment  for the death benefit in lean month when money is tighter. You can over fund the account when you have more money ex: policy $26.00  over fund with payment of $46.00 20 dollars goes into indexed savings account. You get tax differed compound interest on savings account. I have one company that has been getting 9.18% interest for almost 30 years. If you have any questions about UL feel free to contact me.

Answer 4

You absolutely need to do your research, because UL is NOT the best option for you! Term Insurance is certainly the way to go. Get the longest term possible, if you get a 30 yr. term how old will you be? Probably in your 50's or 60's right? Well in those years you will not need as much insurance and your premiums will actually probably be lower. Do not do Cash Value (Whole Life) you pay for two different things in a CV policy. One is the death benefit and the rest goes into the cash value. Let's say you have 250,000 DB, and 30,000 CV. How much does your spouse get if you die.. most say 280,000. Wrong! Beneficiary gets 250,000 but paid HIGH HIGH premiums because the agents sell it as you get so many options with the CV> which you lose if you die, beneficiary doesn't get it or if you borrow money from there they charge 6-8% to take it out and that just keeps getting charged every year until paid back (which hardly ever happens!) Then on top of the interest they charge they take that 30,000 off of the DB. So now your down to 220,000. Universal Life is NO better, in fact much worse. It is SO expensive, people cannot afford to get the nessesary death benefits that they actually need because of the expense it's 4-8 times more expensive. There is an option A and option B in a UL policy. Where one gives you both the death benefit and the cash value. But you are going to pay for that! All they do is if you have 30,000 in CV is buy an insurance policy with your premiums for 30,000. So you still pay for that! It's the most dishonest product out there. Talk to anyone who has done research on this that is NOT someone who sells the c**p! You will regret buying this, I mean it! My parents use to own 11 UL policies and it cost them BIG time!!!!!!! Buy Term Insurance and invest the difference in a Roth IRA or else where. DON'T DO IT! Most agents sell this but don't own it themselves, if they tell you they lie. If they aren't lying they are not smart! And very brain washed!

I don't understand your comment about you don't get your premiums back if you don't die. First of all, that's AWESOME you DIDN'T DIE, but I realize that's not the point. However the point is: do you get your premiums back with auto insurance, homeowners, disabililty, health, any of those? NO! You do not. You need to understand the purpose. You do not get premiums back from CV or UL,etc. either! When your cash value grows, you get down the road and all of the sudden your premiums go up! What do you do? Well a lot of times instead of you cancelling your insurance because you cannot afford it, they will take the premiums from your cash value. OR you pay really high increasing premiums. Because the premiums WILL go up. They are not fixed to be level! So if they take $ from there that is depleting your cash value that was suppose to be your "retirement" or "savings of whatever kind" BAD PLAN! NOTHING ABOUT IT MAKES SENSE!

Answer 5

Universal life is a lousy investment.  Go with level term insurance for your L.I. needs and invest the difference in premiums.

Answer 6

do not waste money on whole life insurance.  term life is the way to go.  For example:  you buy a 20 yr term life policy for $10 per month for $100,000 of ocoverage.  if you die next week--your beneficiary gets $100,000.  if you buy whole life and you die next week, your beneficiary gets however much $$ you have paid into the policy.  it makes more sense to buy term life.  a whole life policy is essentially a savings account so instead of paying an insurance co to administrate your money, just put the money in the bank and earn your own interest.  please ck out this website:  www.daveramsey.com===he help get us out of debt and it was free.  the only crditor that can freeze your bank acct is the IRS