by Guest » Thu Jul 30, 2009 03:03 pm
Hi everyone,
Hope you can help. My husband and I were convinced that whole life insurance was a good thing for ins. as well as investment for retirement.
We have a total of three policies which we have been paying for 20 some years. Now I'd like to "cash" in some of that investment, but here's SOME
of the catches. First, there seems to be very little growth if any on the money we have "invested". Second, the amount we can take out is almost equal to the amount we've paid in and if we take it, we must close the policy, hence no insurance. Third, we can 'borrow' against the policy, but must pay back the "loan", or the interest on it which is 6.4% annually. It can be arranged to have 'dividends' pay this, thereby reducing that amount which could be used to pay premiums, now that I am working only 1/2 time.
In addition, after the dividend money runs out, they will use the accummulated insurance value to pay the premiums - kind of like a snake eating its own tale until, oops, nothing's left? :shock:
At this point, we need to keep the insurance. I'd like to take advantage of having 'invested' in whole life but it looks like the best I can do is just stop paying the expensive premiums, using the dividends to do that.
Please let me know what you think.
Peggy in CA
Posted: Tue Aug 11, 2009 09:48 am Post Subject: insurance
Hi, MKORTZ,..........I'm still in the Military. To tell you the truth, I din't even think of USAA. I live in PA now. I have a Life policy (SGLI),...howver, just looking for some 'extra protection'. Something that can build cash value, etc. Thanks for the advice.
Posted: Wed Aug 12, 2009 01:09 am Post Subject:
SD, I would imagine the military would offer some of the best plans for their former members or even current ones. Is there a place you could call or even look up on the internet to see what is available? Since you are still active maybe you could ask someone personally.
Posted: Wed Aug 12, 2009 12:12 pm Post Subject:
Hey..don't you get extra protection with Veterans Special Life Insurance? I guess you could add to your coverage, if you have this one in place. Playboy
Posted: Wed Aug 12, 2009 11:24 pm Post Subject: insurance
The SGLI coverage 'kicks in' ONLY when something happens to me (God forbid), then it's 'content' is handed to my POA/friend and my son. ...both, of whom are 'Primary' Beneficiaries. The SGLI doesn't hold any kind of 'cash value'. I think I can still hold on to it, even when I leave the Military, but, I would have to pay a MUCH higher price for being a 'Civilian'. I pay $27.00 for $400,000.00 of Life Insurance right now.
Posted: Wed Aug 12, 2009 11:26 pm Post Subject: insurance
............oh, yea,....I guess I COULD ask someone at 'my' unit. Didn't even think about that. (Guess I'm having a 'Senior' moment today..LOL) :oops:
Posted: Thu Aug 13, 2009 12:34 am Post Subject: insurance
hey, thanks...............I already saved the info on my PC. I appriciate the advice. Where did you hear of them?..I've never heard of them before.
Posted: Thu Aug 13, 2009 12:52 am Post Subject: insurance
I sure will pass the word along to friends. Thanks. I'm sure some of my 'Clients' would like this information, as well.
Posted: Thu Aug 13, 2009 11:15 am Post Subject:
The SGLI coverage 'kicks in' ONLY when something happens to me (God forbid), then it's 'content' is handed to my POA/friend and my son. ...both, of whom are 'Primary' Beneficiaries. The SGLI doesn't hold any kind of 'cash value'. I think I can still hold on to it, even when I leave the Military, but, I would have to pay a MUCH higher price for being a 'Civilian'. I pay $27.00 for $400,000.00 of Life Insurance right now
I'm not trying to pick on you. I just want to make sure that you understand. You need to stop referring to your friend as your POA when it pertains to life insurance. At death, you do not have a POA. POAs are only for living people. If your friend and son are equal beneficiaries, at death, your friend will get $200,000 and your son will get $200,000. This is perfectly acceptable if you want your friend to have $200,000 and you want her to use it to benefit herself and her own family. This is not acceptable if you want that money to somehow benefit your child. It has not do with the law and not trust.
Posted: Fri Aug 14, 2009 02:00 am Post Subject: insurance
MM.....i see what you mean. Actually, the way I changed it is my friend is getting 5% and my son 95%. If my son is still a minor, a 'Trust' is set up until he reaches an 'adult' age. I understand what you mean about the POA/friend 'thing.
Posted: Sun Aug 30, 2009 09:53 pm Post Subject: 76 yr old woman
why wold mutual of ohmaha ins sell 2 whole life policys to a 76 yr old woman just 4 mos ago. Doesnt make good sense to me seems like a scam. Thanks for any help :cry:
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