Hello all,
I'm hoping to get any advice on our whole life insurance - We are coming up on 1 year after starting, and I am hesitating to send in the 2nd year premium after seeing negative feedback online regarding whole life, include Dave Ramsey's take on it. Unfortunately, I do not feel we did enough research at the start of the policy, and bought into the idea at the advice of our financial advisor.
We have two nearly identical policies of $5500 premium and $3500 rider. We have good term insurance in addition to this, which can be converted in the future if we choose. If we quit the policy, we would obviously lose the 1st year premium ($11k total). Our 2nd year renewal payment is due in 3 weeks.
We are age 35, young professionals, making about $240k per year, with 2 young kids. So we DO have the means to continue paying the premium forever. I max out my 403b- however, my job does offer a tax-sheltered 457b which we are NOT doing at the moment. We also do NOT have a 529 for our kids college. Our plan was to contribute to the education using the money available from the whole life.
MY QUESTION IS: Does this seem like a good financial plan? Or should we cut whole life, take the $11k loss, and take advantage of other options. Or try to do both???
Thank you in advance - VERY much appreciated!
I'm hoping to get any advice on our whole life insurance - We are coming up on 1 year after starting, and I am hesitating to send in the 2nd year premium after seeing negative feedback online regarding whole life, include Dave Ramsey's take on it. Unfortunately, I do not feel we did enough research at the start of the policy, and bought into the idea at the advice of our financial advisor.
We have two nearly identical policies of $5500 premium and $3500 rider. We have good term insurance in addition to this, which can be converted in the future if we choose. If we quit the policy, we would obviously lose the 1st year premium ($11k total). Our 2nd year renewal payment is due in 3 weeks.
We are age 35, young professionals, making about $240k per year, with 2 young kids. So we DO have the means to continue paying the premium forever. I max out my 403b- however, my job does offer a tax-sheltered 457b which we are NOT doing at the moment. We also do NOT have a 529 for our kids college. Our plan was to contribute to the education using the money available from the whole life.
MY QUESTION IS: Does this seem like a good financial plan? Or should we cut whole life, take the $11k loss, and take advantage of other options. Or try to do both???
Thank you in advance - VERY much appreciated!