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.