I know whole life insurance is almost always a bad investment.
I have an Universal Life policy that is active for last 7 years and the cash value is almost at level or my total premium outlay at this point. I did it back in the days thinking this is a good idea to get ~4-5% dividend tax free with insurance benefit when the interest rates were so down, thinking this as just another alternate investment.
Question now is I don't have the risk of a MEC so I can take my cash value out fully, have another term policy that can still provide the insurance advantage, so thinking does it make sense to take the cash out get my principal back with no penalties/fees and invest in BND, Treasury bond or maybe real estate.
What might be wrong with my thinking ? When is keeping universal life a good thing ? If I have an option to convert Universal Life to Whole Life does it make sense as paid up policy ? I am thinking in alternative case stop contributing more premiums and let it ride, the in force illustration is showing ~4.4% return a year but obviously its not guaranteed![:(]( "Sad")
I have an Universal Life policy that is active for last 7 years and the cash value is almost at level or my total premium outlay at this point. I did it back in the days thinking this is a good idea to get ~4-5% dividend tax free with insurance benefit when the interest rates were so down, thinking this as just another alternate investment.
Question now is I don't have the risk of a MEC so I can take my cash value out fully, have another term policy that can still provide the insurance advantage, so thinking does it make sense to take the cash out get my principal back with no penalties/fees and invest in BND, Treasury bond or maybe real estate.
What might be wrong with my thinking ? When is keeping universal life a good thing ? If I have an option to convert Universal Life to Whole Life does it make sense as paid up policy ? I am thinking in alternative case stop contributing more premiums and let it ride, the in force illustration is showing ~4.4% return a year but obviously its not guaranteed
Statistics: Posted by swayswift — Wed May 08, 2024 9:33 pm — Replies 7 — Views 420