Life insurance-death insurance which one is it? Why have to die to benefit? Really you should be concerned about living. The chances are you are going to live way beyond when you think you are going to die. If you live long enough you will have earned your income over a lifetime now you need money to retire on.
When we are young we have been told our insurance rates will be small due to our young age and the likelihood of our death is nil. Since our premium is so small we are convinced to add a saving account along with it (cash value). Look out because you don't examine close enough what is going on with this savings account. I will give you some illumination on this.
You were watching late TV one night and you came across a great offer to get a good return on your money. It explained they have hired a group of investment geniuses and in order to make this work, for the first couple of years these investment gurus are going to charge fees that will take your first two years of deposits. Once these gurus zero in on the best investments you can be assured of 2 1/2 to 3 1/2% return on your investment. They explain that in the event you need to borrow money from your account for an emergency you can borrow your own money and we will only charge 5 to 6% interest. In the event of your death they will keep your investment!
These four rules apply to any whole life policy. Even though you may have accumulated $9,999 in your savings (cash value), upon death the insurance company keeps your savings! Would you knowingly enter into any kind of investment like this! Buy insurance for protection only not savings or investment!
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