Life Insurance

RapStar · May 1, 2006

To any financial brains out there or life insurance sales gurus:

I am comparing a few options out there...I want to save $$$ for retirement, and also rest assured that my son has at least a million $$$ policy should something happen to me.....

I am self-employed, want to save for retirement as well as take care of my loved one, should anything happen to me. I have been pitcehd variable life insurance where I can overfund it and take out nice cash withdrawals when I reach 59.5. I'm 30 now and really need to get this started before its too late.

However, term is much much cheaper but I have no cash value....As of now I'm leaning towards 30 year term and a SEP IRA. Anyone out there with insight I would greatly appreciate it...

VegasCoupons · May 1, 2006

Do a 30 year term with ROP (Return of Premium), then you can convert that into a UL with those funds.

Term is the way to go right now, people are living longer and rates are so cheap. And as it seems people will continue to maintain better health which in turn will keep premiums costs lower when you hit 60.

RapStar · May 2, 2006

Vegas, thanks....that is what I'm gathering, among other things....I was recently told Variable is a good plan for the BROKERS which is what I was leary of. They earn quite a bit the first few years that the plan is funded, and ensure 9% or whatever...but for my money, the balance not paid into term can earn more elsewhere and be liquid....

Thanks again

moethepuppy · May 3, 2006

Your best bet is to stick with term insurance. Compare rates and stick with top rated companies (A.M. Best is a good place to compare the financial strength of various insurance companies). As far as retirement savings are concerned, there are tax deferred plans for self-employed. Personally I'd stick to low fee index funds or index ETF's. Do your research, the web is full of quality sites where you can gain basic financial knowledge. That way you can do things yourself, the money you save not having to pay a financial pro is more money you can invest for yourself.