0

I am being offered a savings account with a Whole life Insurance policy. I believe it is 100,000 policy for $30 a month. However, half of this goes to a savings account with a 4% "compound interest."

Supposedly, the deal is locked in for life. (Different caps are available). Only a small amount of your cap can be deposited in a year; by my estimate about half of the 4500 required for interest to break even with lost premiums. However, if I separate from my job, I can no longer alter the deal, but I can cancel. However I can take from or borrow against myself with the account.

Should I take this? What should I ask the agent? I have the money to have it deposited to break even with interest my second year, but since I will not make money on it until then, I will be losing out on the 1.5% interest I now have.

  • how old are you and do you have any dependents? – quid Apr 24 '18 at 0:05
  • About under 30. No dependents none likely – user1833028 Apr 24 '18 at 0:44
  • 3
    If no dependents are likely, who shall benefit from the life insurance? – Ironluca Apr 24 '18 at 6:41
  • 2
    There are many questions here that and and answer the pros and cons regarding whole life. Those who are pro are most likely to be sellers of the product, with kids to put through college. – JoeTaxpayer Apr 24 '18 at 9:44
  • 1
    " However, if I separate from my job, I can no longer alter the deal, but I can cancel." why is this deal linked to your current employment? – mhoran_psprep Apr 24 '18 at 10:11

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.