Hi, this is my first post so I'll try and include as much info as possible about my situation and myself. First, thanks in advance for the forum and responses... I've already learned a lot reading through the posts.
Next, about myself: male, 36, good health (already did blood test/urine, got the select preferred medical classification). I am looking to purchase a $2.5mm whole life policy mainly to accumulate tax-deferred cash value growth as quickly as possible. (I am in a high tax state.) Through an independent agent, I've already gotten quotes from NY Life at about $30K/year (premium) and Guardian at about $33K/year (Whole Life 99). I'm going to try and get Mass Mutual and Northwestern quotes just to round out the "best" big mutual companies.
But I have several questions and am not sure if I'm getting straight answers from my agent. I know agents live off commissions and I have nothing against that, but I want to make sure I'm getting clean advice:
1. If I have the cash already on hand to make a lump sum payment but obviously want to avoid an MEC (but want to "fund" this as quickly as possible), what do you guys recommend as the best prepay option or strategy?
2. I'm not trying to get into a religious war over companies, but why such a big difference in premium? Isn't 10% significant? Of course past results are no indication of future performance, so I "value" these four big mutual companies about the same.
3. Are there other structuring options that might cheapen this up? Some have suggested term + layering in a lot of paid-up additions. But this seems contrary to my goal of building up a large cash value as quickly as possible for maximum tax-deferred growth.
4. Nothing against agents or commissions here - everyone has to eat. But obviously commissions can eat up a lot of your potential return... as much as the first year of premiums! What are the best options to structure such a purchase to minimize commissions so they don't eat into the cash value accumulation and growth, which of course is my objective?
5. I'm somewhat inclined to decline the "waiver of premium" rider, since I have separate disability insurance. Any thoughts there?
Thanks in advance for any thoughts, suggestions, answers to these questions. I'm a newbie and learning about insurance products but definitely see the value of both term and whole life... I just want to make sure I'm doing the right thing before purchasing the policy!
-LearningAboutInsurance
Next, about myself: male, 36, good health (already did blood test/urine, got the select preferred medical classification). I am looking to purchase a $2.5mm whole life policy mainly to accumulate tax-deferred cash value growth as quickly as possible. (I am in a high tax state.) Through an independent agent, I've already gotten quotes from NY Life at about $30K/year (premium) and Guardian at about $33K/year (Whole Life 99). I'm going to try and get Mass Mutual and Northwestern quotes just to round out the "best" big mutual companies.
But I have several questions and am not sure if I'm getting straight answers from my agent. I know agents live off commissions and I have nothing against that, but I want to make sure I'm getting clean advice:
1. If I have the cash already on hand to make a lump sum payment but obviously want to avoid an MEC (but want to "fund" this as quickly as possible), what do you guys recommend as the best prepay option or strategy?
2. I'm not trying to get into a religious war over companies, but why such a big difference in premium? Isn't 10% significant? Of course past results are no indication of future performance, so I "value" these four big mutual companies about the same.
3. Are there other structuring options that might cheapen this up? Some have suggested term + layering in a lot of paid-up additions. But this seems contrary to my goal of building up a large cash value as quickly as possible for maximum tax-deferred growth.
4. Nothing against agents or commissions here - everyone has to eat. But obviously commissions can eat up a lot of your potential return... as much as the first year of premiums! What are the best options to structure such a purchase to minimize commissions so they don't eat into the cash value accumulation and growth, which of course is my objective?
5. I'm somewhat inclined to decline the "waiver of premium" rider, since I have separate disability insurance. Any thoughts there?
Thanks in advance for any thoughts, suggestions, answers to these questions. I'm a newbie and learning about insurance products but definitely see the value of both term and whole life... I just want to make sure I'm doing the right thing before purchasing the policy!
-LearningAboutInsurance