fellersbarnoneranch
Well-known member
rwtherefords":3ava7sp6 said:This discussion is losing focus...
That sounds like a million dollar quote!
rwtherefords":3ava7sp6 said:This discussion is losing focus...
denoginnizer":18ww7xxf said:Is that guarnteed money or expected money? I mean the cash back at the end of the whole life contract.jennibluis":18ww7xxf said:My whole life policy pays better than a cd, pays off double if I die, has cash value after 1 st year and I can borrow from it at a 2% margin.
jennibluis":1g27kesp said:denoginnizer":1g27kesp said:Is that guarnteed money or expected money? I mean the cash back at the end of the whole life contract.jennibluis":1g27kesp said:My whole life policy pays better than a cd, pays off double if I die, has cash value after 1 st year and I can borrow from it at a 2% margin.
Gauranteed.
For example, (using made up numbers):
A million dollar policy plus accumulated cash value.
If I die today my son (well, his guardian until he's 18 or 21) gets a million dollars plus a little cash value.
If I die in 25 years my son gets close to 2 million.
If my son goes to college in 10 years, it's not considered an asset on those lovely financial aid forms, but can be borrowed.
If I get a terminal illness, I get the money.
If I outlive my policy,(your only allowed to pay into up to a certain point per policy) I get a close to a million dollars in retirement money.
If I need to buy a new truck for the farm as a business expense, I can deduct the interest rate of x+2% on my taxes. But it really only cost me 2% because x% is the rate they pay me.
jennibluis":1qwdeg0y said:It still earns almost 2x's more than a cd while your "borrowing" the money. It cost 2% for the loan, not cd plus 2%.
Plus:
Maybe your kids are already in and out of college, but mine isn't. Financial aid is based on ALL your assets, not just liquid assets.
Life insurance isn't counted and the amounts added are not looked at.
jennibluis":a9d6xkf1 said:My policy pays a minimum of 6%. Loan cost would be 6%+2%=8%
If they raised the rate to 10% earnings loan cost would be 10%+2%=12%, that's what I meant by margin.
certherfbeef":ux9kqnm6 said:But for the rest of ya...I'm 28 hubby is 34 our oldest rugrat is 6. If I was to buy term life insurance, do I buy 10 years at a time? assuming that as I age I have fewer bills.