Finance Questions? Ask a Financial Expert for Answers ASAP
Hi from Just Answer. I can help with your insurance question.
I am not a fan of 'whole life' insurance. It is almost always a ripoff. I might instead help you buy the right kind of coverage.
I believe that you should buy enough life insurance that if you pass, your income can be replaced. That supports your family. There are other factors, such as your age, health, ages of your children, etc., but I will focus on the kind of insurance product to buy.
Let's say you are 40, with a wife and three kids, all under 10. You currently make $60,000 per year and you are the sole breadwinner.
Your whole life policy will be very expensive, and never be large enough to produce the life insurance protection you need (while the kids are at home).
If you were to buy $750,000 worth of 20 year level term life insurance, the premiums might be less than $100 per month. The funds, invested to return 8%, would throw off $60,000 per year and never touch the principal.
The cost of life insurance is not tax deductible for these purposes, but the proceeds aren't taxable. A pretty good incentive.
Please consider the purchase of term insurance, not the whole life that pays the person selling it to you fat fat commissions. The wrong kind of coverage, that will be inadequate for your needs.
There are several online web sites you can use to price and purchase policies. SelectQuote and Intelliquote are two such services. We can't recommend another vendor's services here, but those two sites can start your search.
Thanks for asking your life insurance question, and for allowing me to offer my take on life insurance. Please ask any follow up you wish, or leave OK or better feedback to rate my response if acceptable. Thanks from Just Answer. I'm PDtax.