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Investment版 - TERM OR WHOLE LIFE
相关主题
term life insurance 请教whole life insurance有什么pitfalls?
这里有多少人买了life insurance?VUL = whole life?
20年100万的term价格?有多少人买了Whole Life Insurance? (转载)
买term还是IUL?问个关于whole life insurance
403b or life insurance请教 whole life insurance,谢谢
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相关话题的讨论汇总
话题: life话题: whole话题: term话题: policy话题: insurance
进入Investment版参与讨论
1 (共1页)
e******s
发帖数: 309
1
请问有没有什么合集摘要之类的我可以借鉴一下?
我的理解是Term的作用只是保险,Whole Life还兼有投资和避税的作用。同样的保额,
whole life要比term贵出一二十倍。
我两个都买了一点,现在有个time sensitive offer可以把term 转成whole life。我
觉得投资通过保险和自己买股票基金地产可能差不了多少。LD有合法手段把钱转到避税
国家(想瑞士新加坡)去储蓄投资,所以避税的作用对我来说意义不大。
不知这个理解对不对。哪些没有投资收益税和遗产税的国家是不是根本就不需要whole
life?
谢谢。
s***s
发帖数: 4329
2
http://www.smartmoney.com/plan/insurance/term-or-whole-life-801
Whole Life Insurance or Term?
pdated on September 10, 2008.
The right type of life insurance can be summed up in a single word: term.
But before we explain why, it's important to understand the differences
between the most common types of insurance available. Our glossary can help
with that, and decipher some of the more common insurance lingo.
The basic difference between term and whole life insurance is this: A term
policy is life coverage only. On the death of the insured it pays the face
amount of the policy to the named beneficiary. You can buy term for periods
of one year to 30 years. Whole life insurance, on the other hand, combines a
term policy with an investment component. The investment could be in bonds
and money-market instruments or stocks. The policy builds cash value that
you can borrow against. The three most common types of whole life insurance
are traditional whole life policies, universal and variable. With both whole
life and term, you can lock in the same monthly payment over the life of
the policy. (Read more on how to buy a life insurance policy or determine
how much life insurance you will need.)
Whole life insurance is expensive: You're paying not only for insurance but
also for the investment portion. That extra cost might almost be worth it if
these policies were a good investment vehicle. But usually they aren't.
Insurance agents like to call these policies retirement plans, emphasizing
the "forced savings" inherent in forking over the premiums each month "for
retirement."
Leaving aside the fact that there are many better ways to save for
retirement, these policies come with high fees and commissions, which
sometimes lop off as much as three percentage points from the annual return.
On top of that, there are up-front (but hidden) commissions that are
typically 100% of your first year's premium. Worse, it's often impossible to
tell what the return on the investment will be, and how much of what you
pay in goes toward the insurance and how much toward the investment.
Premiums for term insurance are downright cheap for people in good health up
to about age 50. After that age, premiums start to get progressively more
expensive. The same holds true for whole life policies, though people who
need coverage starting in their 60s and beyond may have no alternative but
to buy whole life. Most companies simply won't sell term policies to people
over about age 65.
To get a real sense of the value of term, let's compare a term policy and a
universal life policy. Say a 40-year-old nonsmoking male has a choice
between a $250,000 Met Life universal policy with a $3,000 annual premium
and a same amount of renewable term coverage with a 20-year fixed premium of
$350. At the end of one year, the universal policy, assuming it paid 5.7%
per year, tax-deferred, would have a cash value of exactly zero (cash value
is the amount you would get back if you canceled the policy). But say he had
instead invested $2,650 (the difference between $3,000 and $350) in a no-
load mutual fund that averaged a total return of 10% annually. At the end of
the first year, he'd have $2,841, accounting for taxes on the earnings at a
28% rate. At the end of 10 years, he would have accumulated more than $46,
000 in after-tax savings in the mutual fund. Over the same period, the cash
value of the policy would have climbed only to $31,819.
That's not to say that whole life insurance is always a bad idea. Wealthy
people can use whole life in their estate planning by setting up an
insurance trust that will pay their estate taxes from the proceeds of the
policy. And for the growing number of people in their late 40s or early 50s
who are just starting families, whole life is at least worth a look.
One of the great problems with whole life is only an expert can tell if a
policy you own or are considering will ever become a decent investment.
James Hunt, actuary for the Consumer Federation of America, who has analyzed
thousands of policies, notes that whole life policies hardly ever yield a
reasonable return unless held for 20 years or more. So if you buy one be
prepared to pay into it for the very long haul.
The key to a whole life policy is its internal rate of return -- the yield
on the policy after all fees and charges are subtracted. A competent
analysis can determine at a minimum whether the weight of the fees and
charges built into one of these policies will ever allow a worthwhile return
. Such an analysis will also pinpoint the minimum amount of cash value that
you can derive from a policy at any given time interval.
You've been faithfully paying into that whole life policy a good pal of your
brother-in-law sold you 10 years ago. And now you're thinking, "Hey wait a
minute, I should be bailing out and getting a cheap term policy." Not so
fast. First and foremost, keep in mind the substantial sum you've probably
paid in over the years. How much will you get if you "surrender" or cash it
in now? The answer to that question can be found in the illustrations you
got when you signed on the dotted line. If you can't determine the surrender
value you may have to -- heaven forbid -- call your agent and ask. But it's
worth taking the trouble before you make a decision.
Most policies don't start to build decent a cash value until their 12th or
15th year. So if you cash in after 10 years, you could be out of a lot of
money. And you can be sure that if you surrender in the first five years or
so, practically every dime you put in will be down the toilet. The next
thing you have to consider is whether you are still insurable at a
reasonable rate if you switch to term. That's because you'll have to
requalify medically. If you are over 50, smoke or have health problems, you
may find it's cheaper to hold onto your old policy. Another option worth
considering is a tax-free transfer of the value in your old policy into a
better one, perhaps from a low-commission company like Ameritas.
If you're looking for whole life coverage or a term policy that you'll want
to keep 20 or 30 years, the financial soundness of the insurer is a critical
concern. You want some assurance the company will be around in case you
aren't. For insurance companies, the major credit agencies like Standard &
Poor's rate claims-paying ability.
Fortunately, information on the credit worthiness of insurance companies is
easy to obtain. Reports are cheap or free over the Internet. You can always
contact the insurance company and ask about its ratings, but it's best to
get this information independently. In general, go with an insurer rated A
or better; the most financially sound insurers are rated AAA, though some
rating agencies use slightly different letter grades.
The premier Web site in terms of detail and ease of use, (best of all, it's
free) is insure.com where you can get ratings online from Standard & Poor's
as well comprehensive reports on individual insurers. AM Best has a huge
database, but you have to pay for it. While you can access ratings free of
charge, a detailed company report will set you back $75.
Make sure any report you get is current, say within the last six months. Be
extra careful to confirm ratings you'll find on many of the online quote
services, which may be stale.
g*****g
发帖数: 34805
3
Good article, in short, whole life is for rich, and I mean very
rich that inheritance tax is a concern.
Do term and invest the rest.

help
periods

【在 s***s 的大作中提到】
: http://www.smartmoney.com/plan/insurance/term-or-whole-life-801
: Whole Life Insurance or Term?
: pdated on September 10, 2008.
: The right type of life insurance can be summed up in a single word: term.
: But before we explain why, it's important to understand the differences
: between the most common types of insurance available. Our glossary can help
: with that, and decipher some of the more common insurance lingo.
: The basic difference between term and whole life insurance is this: A term
: policy is life coverage only. On the death of the insured it pays the face
: amount of the policy to the named beneficiary. You can buy term for periods

M********y
发帖数: 1121
4
I was also considering the same question recently. By rich, how rich are you
talking about? Leaving more than 1 million legacy?

【在 g*****g 的大作中提到】
: Good article, in short, whole life is for rich, and I mean very
: rich that inheritance tax is a concern.
: Do term and invest the rest.
:
: help
: periods

g*****g
发帖数: 34805
5
More than that, I think you can inherit 5M without tax today.

you

【在 M********y 的大作中提到】
: I was also considering the same question recently. By rich, how rich are you
: talking about? Leaving more than 1 million legacy?

t***s
发帖数: 4666
6
if you are asking this question, you're not rich enough.

you

【在 M********y 的大作中提到】
: I was also considering the same question recently. By rich, how rich are you
: talking about? Leaving more than 1 million legacy?

1 (共1页)
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term life insurance 请教whole life insurance有什么pitfalls?
这里有多少人买了life insurance?VUL = whole life?
20年100万的term价格?有多少人买了Whole Life Insurance? (转载)
买term还是IUL?问个关于whole life insurance
相关话题的讨论汇总
话题: life话题: whole话题: term话题: policy话题: insurance