Rabby
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If you were worried about becoming a litigation target, you could stuff some money into single premium whole life.
The cash value and death benefit are sheltered from litigation and creditors. Even if they take everything else, you have paid-for life insurance with no premiums due.
It guarantees your heirs get something. Or you can borrow the cash value. Not that I'm buying one, or selling one.
Downside: It becomes a Modified Endowment Contract (MEC) in the US, which has less favorable taxation features than regular whole life.
@JScott why do you say it's "more expensive?" Do you mean you pay more up front? Anything that isn't financed over time has this feature... when you pay cash for a house, you pay $200,000 on day 1. When you finance it you pay less on day 1, but more over the amortization period.
The cash value and death benefit are sheltered from litigation and creditors. Even if they take everything else, you have paid-for life insurance with no premiums due.
It guarantees your heirs get something. Or you can borrow the cash value. Not that I'm buying one, or selling one.
Downside: It becomes a Modified Endowment Contract (MEC) in the US, which has less favorable taxation features than regular whole life.
@JScott why do you say it's "more expensive?" Do you mean you pay more up front? Anything that isn't financed over time has this feature... when you pay cash for a house, you pay $200,000 on day 1. When you finance it you pay less on day 1, but more over the amortization period.
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