Whole Life Insurance Policy?

[hsr86]

Hello

I was interested in finding everyone's thoughts on WL insurance, more specifically NWM Adjustable CompLife. I am in my mid 20's and am looking at this from an investment standpoint. I would have a premium of $6000.00, $4000.00 of that being additional cash premium to build the cash value of the policy faster. It is a $500,000 policy, I earn a fair income and have no wife and kids. Like I said this is investment only, please don't preach, buy term invest difference. I dont feel I have a great need for insurance, I am own my own business and have been told this is a great way to put money away tax free. Please give me your thoughts. The alternative to this product is to just invest in stocks, mutual funds, and real estate. Thanks.

[G.D.BeanCounter]

Do you have a Financial Advisory Team? (Accountant, Financial Planner, Estate Atty) Sounds like you are looking to build a nest egg, which is best done through the help of professionals. No one can give you advise tailored to your situation without knowing your circumstances. At your age, you may afford something a little more risky for a higher rate of return. The answer to your inquiry, and I am sure most financial people will agree, "It depends."

[Dr.Brian]

One advantage to getting 30 year term insurance now is that you lock in a low rate while you are young and before you get high cholesterol, blood pressure, etc. All will increase your premium. You'll need insurance eventually. And you shouldn't need much (any) 30 years from now when it expires.
I would invest in foreign bonds, Australia and Brazil should be good for a few years. Whole life is really only good for a handful of specialized things, investing hasn't traditionally been one of it's best uses, but these are strange times and rates on US govt bonds, etc are very poor. Though, I expect that these whole life rates are also not so hot.
Good luck. Talk to an independent advisor that doesn't sell whole life and show him/her what they're offering. You pay them to help you work things out. They may have a bias, but you're paying them to eval WL as a part of your entire plan.