Whole Life for Future Savings

desirayg

New Member
1
I have $15,000 that is in a poor performing savings account. Someone recommended buying a single-premium whole life insurance policy, using it as an investment for future use, such as paying for my kids college in 13 years or paying off my mortgage. Is this typically the best rate of return for a savings plan? Recommendations? (I currently have term life insurance and a sufficient safety net.)
 
Single pay $15k isn't going to do much....if you qualify, and don't have one, get a Roth IRA - divide it up between 3 quality funds. Make sure you have enough term to protect your family. Granted, I don't know you're entire financial situation, but $15k single pay wouldn't be my choice.
 
I have $15,000 that is in a poor performing savings account. Someone recommended buying a single-premium whole life insurance policy, using it as an investment for future use, such as paying for my kids college in 13 years or paying off my mortgage. Is this typically the best rate of return for a savings plan? Recommendations? (I currently have term life insurance and a sufficient safety net.)

Most of the time, a single premium whole life is also a mec which means any withdrawals are treated like Ira distributions.

There are other life insurance products out there that can be used in the way you want them to be using the funds you have.
 
Are you going to continue to fund this or is the 15k a one shot deal?


I would skip the single premium deal. Your intent is to take the money out later. Single premium doesn't really create an advantage for this area and 15k isn't a killer premium.


Could you take a second and detail where you have your other money? .
 
I recommend a good 10 pay with Mass. As a single premium is also a MEC and only good for death benefit.

A 10 pay provides lots of guarantees, a fixed number of premiums. Cash value and death benefit both grow over time.

Dividends can be pulled out up to basis tax free.
 
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