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Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!drutx!GOD
From: GOD@drutx.UUCP (GOD)
Newsgroups: net.invest
Subject: RE: Life Ins
Message-ID: <2423@drutx.UUCP>
Date: Fri, 5-Apr-85 10:50:44 EST
Article-I.D.: drutx.2423
Posted: Fri Apr  5 10:50:44 1985
Date-Received: Sat, 6-Apr-85 03:20:28 EST
Organization: AT&T Information Systems Laboratories, Denver
Lines: 29


> I recently bought an insurance policy with the intent of using the
> cash value each year to finance an IRA (this is what the policy is
> designed for).  A representative from a competing company then showed
> me a policy that had a premium about two-thirds of what I am now
> paying and told me I had really been taken.  Her policy was "Unit Life"
> while the one I have is "Whole Life".  Before I make another payment
> and make a bad deal worse, I need to know if I really have a bad deal.
> Can anyone suggest where I might get OBJECTIVE advice on my current
> policy?  Does anyone have experience with this type of arangement?

I was involved with Life Ins for almost a year, and from what I saw
Whole Life policies are the worst available.
   Universal Life was OK, but recent law changes took care of that.
Now, the minimum insurance corridor on these policies (this is the
minimum difference between cash value and TOTAL death benefit) has been
increased; so U-Life is not a good investment anymore.  Also, it used to
be that any withdrawal from the cash value on U-Life was tax-free until the
principal was exceeded.  Now withdrawals are taxable until only the principal
is left in the policy.
   I can assure you that the best investment is to buy the cheapest term
insurance available (from a company that's been around for awhile), and
invest the rest on your own.
   From the description of your present policy, I would suggest that you
buy term + an IRA.  I can't understand why you would put the money in a
Life policy, then take it out right away for the IRA.  Why not just put
it in the IRA to begin with?

Dave Van Handel