Quite obviously this is a "one sided view"

DM wrote:
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Obviously you are insurable, and there is in all probability some chance
that you will LIVE more than 20 or 30 years. There is also a possibility that
YOUR SPECIFIC NEEDS FOR INSURANCE just might continue beyond
that time period. There is also some possibility (it has happened) that the
"market" will go down..........


Just remember that at 3% your money doubles every 24
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sounds intriguing, but seems to have ignored "GUARRANTEE"'s.
The original thread dealt with a Whole Life contract. There are a
multitude of Interest Sensitive AND/OR Market sensitive contracts
that are available, which offer potential for "growth", but also contain
GUARRANTEE's.

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Extremely missleading statement. The carrier does NOT KEEP any
of the Cash Value after 35 years. There are surrender costs in the
early years as there are with CD's and other investments. IF and WHEN
YOU decide that YOU no longer NEED the Life Insurance that the
contract offers, then you have the ability to Cash-in the policy, and receive
the ENTIRE Cash Value as of that date.


They call that the profit. No one has a
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ABSOLUTELY correct, in that there is no crystal ball, but there are
GUARRANTEES. The writer of the above ASSUMES (and you know
just what that spells) that EVERY INVESTER will have the stamina to
mainatin the investment program, and become "finacialy independent".
I dare say that has NOT happened to many people who elected to follow
the "buy term - invest the difference" philosiphy.
Cal Lester CLU

LavaDude,
If you are younger and Insurable, you will want to replace any
whole life insurance with a 20 or 30-year term policy and invest the
difference. Just remember that at 3% your money doubles every 24 years,
6% every 12 years, and at 12% every six years. Most Whole life policies
will guarantee 3-5% only after the first few years. To give you an
example of what this means over a 35yr period, Investor A, B, & C all
invest $200 a month. Investor A plays it safe and purchases a CD or
money market account and earns 3%. At the end of 35 years he goes and
withdrawals approximately $150,000. Okay, but remember inflation may
have been 4%!! Investor B invests and earns 6%,....earns approximately
$295,000. Even better, right? However, investor C, realizes that over
an extended period, Mutual Funds have average a 12% average. At the end
of 35 years, Investor C withdraws....1.3 million. Your money will
double every six years. That is the difference. This is why Insurance
Companies and Banks are the biggest buildings downtown. Take it a step
further, You are investor A and the Bank, or Your Whole Life Policy is
investor C. At the end of 35 years, you decide you want to cash in your
(Cash Value) policy. The C gives you your 3% or if you lucky your 6%,
and they keep the difference. They call that the profit.
No one has a crystal ball, but you can buy far more coverage with
term while you build your assets. And when you have reached Financial
Independence, you are now self-insured. If you have a Whole life
policy, but sure to look at the Guaranteed Cash Value and not the
"Possible Cash Value!'


Andrew Keck
www.primerica.com/akeck

LavaDude wrote:
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welcome


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YES. The increase(s) in the premium are spelled out in the contract, either
small annual increases over a period of years 3,5 or 10, or major jumps
evrey 3 or 5 years, then STOPS.


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Generally speaking NO. Since it is a form of Whole Life, the actual
premiums are spelled out, and can NOT be adjusted.

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Sorry, but my crystal ball just dropped on the floor, and
shattered...........


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FALSE. All insurance has a high cost. How do you think they
get the money to pay your heirs a million bucks when you die.

Whole Life policies DO NOT EAT AWAY AT THE CASH VALUE.
The Cash Value is GUARANTEED to be EXACTLY as stated in
the contract on any given day. It will CONSTANTLY INCREASE
as long as you continue to pay premiums.

Cal Lester CLU

Hello All!

I've been lurking in this group for a short time and have a few questions:

Can someone explain to me what a Graded Premium Whole Life policy is? I've
looked it up online and found out that it's a policy that starts off with
low premiums and later these premiums will increase. Is this true?

Also, is it possible to pay more into a GPWL policy to have a greater
amount in the cash value (savings) portion of the policy?

Finally, in general... would "buying term and investing the difference"
beat a GPWL policy... if so, why?

I keep reading information about whole life policies having high costs and
they eat away at your cash values - true or false?

Thanks!

LavaDude