1. 0 POINTS
    David RacichPRO
    Fountain Hills, Arizona
    Participating whole life insuarnce can be an excellent supplimental retirement alternative for conservative savers who desire tax deferred accumulation and potentially tax free distributions. To maximize the cash values, the design of the policy needs to use a low base amount with a term rider and paid up additions rider. Some use participating whole life inusrance for death benefit, but many advisors alternatively use guaranteed universal life.
    Answered on July 15, 2013
  2. 7479 POINTS
    Steve KobrinPRO
    President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
    Believe it or not, there are some people out there who are very happy they bought whole life insurance :). I can think of two in particular.

    These fellows are both in their late 50s. They have been in business together for over 30 years. As a matter of fact, they grew up together. They run a very successful catering business.

    They each bought a whole life policy when they were first starting out in their career. They each had just gotten married, and were intent on starting a family and growing a thriving business together. The each qualified for one of the best underwriting classes, and were prepared to make a commitment to keep paying the premium. They each chose a blue-chip company with a history of paying big dividends consistently.

    Now fast forward 30 years. As you might imagine, there is a ton of money inside those policies. And it keeps growing. The guaranteed interest rate is better than anything else you can find. The size of the dividends are also extremely competitive for a conservative product.

    They each were smart in managing their money. They have other funds available for emergencies, for growing their business, for recreation, etc. So they can just let their insurance account value grow and grow. When the time is right, they can draw down a pretty significant cash flow. And you know what? If worked out correctly, they won’t have to pay a dime of taxes on that money!

    If they do have an emergency, then the cash in that account can be available within days. No credit check, no hassle. Again, with the proper guidance, they can avoid taxation and still secure the survivor benefit needed.

    In the case of these two successful gentlemen, whole life worked out just fine.
    Answered on November 9, 2015
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