Lux Investing

Besides stocks, real estate investing, mutual fund. Do you consider Life insurace as an investment?

Public Comments

1. Not really get on Dave Ramsey's web site and see what he says about it.
2. Life insurance is not only and investment but also protects thus it's worth considering.
3. HELL NO. Never EVER buy whole life--you can get a better return on your money in an ING account. I do recommend getting a term life policy--it is necessary protection for your loved ones if you pass away suddenly (if you have a husband/wife and kids). But I would not consider it an investment since term life expires after the term you applied for (I currently have a 30 year term, set to expire when I'm 53.) You then have to apply again and get another medical exam--and since you're older your rates will go up. Yes, your beneficiaries will get the $ once you die, but you can get a much better return in your lifetime investing that money elsewhere.
4. I would say no, however depending on your age and income, you should have up to 10 times your salary in term life, that is a fixed premium for usually 10 to 20 years. I currently hold 2 policies, they're 20 year term at about $400 a year each, 500,000 each (I'm 32, nonsmoker). Your plan should be to 'cancel' the policy after 20 years b/c you should have saved a million by then. The policy is a safety net in case of freak accident or injury causing death or incapacitation. After 20 years the premiums jump up quite drastically.
5. by all means as long as it is only hole life insurance. anything else is just a rip off to get money from you that you can't afford to throw away. i learned the hard way doing this. i bought term life insurance which is useless as you cannot get it back no matter what or how much you put into it. it is a waist of time as well as money!
6. Investment ? never, at the end of the period of "investment" you receive very little, it's only in the case of death that "someone else" will receive money ! Tht why it it is an isurance, not an investment ! you receive Investment = you pay $100 you receive $110 Insurance = you pay $100 you receive nothing (except purpose of insurance) hybrid insurance/investment you pay $100 you receive $10, he other $90 is to cover your insurance the $10 is investment and you will receive interest on that !
7. No. Life insurance is just that... Insurance. Just like your car insurance. It protects your loved ones in the event something bad happens. ///
8. Life insurance is not an investment. Anyone that suggests it is should be avoided at all costs. Whole Life, Variable Annuities are the worst (and most expensive) examples.
9. Yes. (If you have children)
10. I do not consider life insurance an investment, but as a sometimes necessary expense. Shop for it as you would for any other service, carefully comparing rates and plans before buying only what you absolutely need. If you're looking for a better investment, consider beginning real estate investing. It is entirely possible, through wholesaling, to earn excellent money while learning about property values in your area. Then, when you're ready, you can start buying property to hold for long-term appreciation. There are at least four ways to benefit by beginning real estate investing... immediate income from wholesaling, long-term appreciation in property value, cash flow from monthly rental income, and tax benefits from depreciation. Plus, it's a ton of fun! Tom Dunn