LIFE INSURANCE

[aygart]

The latter has higher costs.

Source?

[AsherO]

Source?

סברה. One is a clerk (which the insurance company also employs, albeit with better economies of scale), the other is an incentivized sales agent.

[aygart]

סברה. One is a clerk (which the insurance company also employs, albeit with better economies of scale), the other is an incentivized sales agent.

They absolutely have people going around to solicit enrollments.

[AsherO]

They absolutely have people going around to solicit enrollments.

Coming out of the $25/year membership fee? I wonder how that’s sustainable.

These salespeople should become licensed life insurance agents and sell term alongside it

[EliJelly]

I worked in a chassidish office where a lot of co-workers wouldnt get life insurance for haskafic reasons, not monetary.

What are they? I know one reason but that was actually given by the Chazon Ish.
Shinover Rov famously said having life insurance is a segulah for אריכת ימים.

[whacked1]

What are they? I know one reason but that was actually given by the Chazon Ish.
Shinover Rov famously said having life insurance is a segulah for אריכת ימים.

Which chassidis or what were their haskafic reasons? I honestly didnt care, I think something along the lines of hashem makes a person die when its their time and provides. But I just smiled and waved. Never discussed fully.

(They were viznitz )

[knowitall]

What about sales commissions?
[/quote]
Commissions on term policies aren’t much, hence why it’s very hard for an agent to make a living just selling term.

Whole life and other permanent products can easily have a 5 figure commission.

[ExGingi]

-“LifeShare is classified as a 501c( non-profit “Fraternal Beneficiary Society.” Since members receive the financial security of being in the community, their mutual-aid payments are not tax deductible. However, as noted, these payments are considered tzedakah.”

https://content.naic.org/sites/default/files/inline-files/Chapters%2021-25.pdf

https://www.irs.gov/pub/irs-tege/eotopicf04.pdf

My guess is that if indeed they qualify as a Fraternal Benefit Society, the payouts would be tax free just like life insurance (and member payments would not be considered tax-deductible contributions).

[yr]

Anyone ever consider pros and cons of buying from policygenius or similar site vs an actual agent? Quotes are coming in about 30% lower. I know it won't be convertible but it's a second policy so that isn't as important.

[ExGingi]

Anyone ever consider pros and cons of buying from policygenius or similar site vs an actual agent? Quotes are coming in about 30% lower. I know it won't be convertible but it's a second policy so that isn't as important.

Any agent/broker can sell you any policy available on any online quoting site. If they are good you will get proper education and service.

[herb]

Any agent/broker can sell you any policy available on any online quoting site. If they are good you will get proper education and service.

yup. I even quoted myself out on one of these websites and brought it to a broker who was giving me a higher quote from another company, to which he was disappointed in himself that he missed that, and wrote me the policy

[avadah]

Hi,
I'm considering whole life insurance but the more I look around online people seem to be really against it. How can I get some clarity about it?

[avadah]

What are PUA's and VUL's?

[ExGingi]

What are PUA's and VUL's?

VUL is Variable Universal Life. It's a product that IMHO should not be bought for primary protection.  It could be suitable in complimenting an estate plan where market exposure is desired, and should always be maximum funded.

PUAs are paid-up additions are small bits of extra single-premium insurance which are added to the base policy and provide additional death benefit and additional cash value, for which no further premiums are due. The most commonly used dividend option of Whole Life insurance nowadays is Paid Up Additions. Often those can also be purchased, subject to minimums and maximums using out of pocket premiums.

[knowitall]

Hi,
I'm considering whole life insurance but the more I look around online people seem to be really against it. How can I get some clarity about it?

https://www.whitecoatinvestor.com/debunking-the-myths-of-whole-life-insurance/

[ExGingi]

https://www.whitecoatinvestor.com/debunking-the-myths-of-whole-life-insurance/

Do you go to financial advisors for medical advice?

[knowitall]

Do you go to financial advisors for medical advice?

Classic strawman argument.

[farmbochur]

What are PUA's and VUL's?

Based on your questions, it sounds like wealth accumulation is an objective here. Have you already maxed out contributions to tax qualified accounts? With a good plan, the IRA, 401k, and HSA are much more efficient at building wealth than an insurance product (subject to their annual contribution limits). This conversation shouldn't begin until those have been maxed out.

[Mordyk]

Hi,
I'm considering whole life insurance but the more I look around online people seem to be really against it. How can I get some clarity about it?

run your own numbers. an agent will promise you xyz returns.  take out a calculator and prove them wrong. usually the math just doesn't add up.  and once they start with "its the best forced savings" then you know they got nothing on your numbers

[ExGingi]

Based on your questions, it sounds like wealth accumulation is an objective here. Have you already maxed out contributions to tax qualified accounts? With a good plan, the IRA, 401k, and HSA are much more efficient at building wealth than an insurance product (subject to their annual contribution limits). This conversation shouldn't begin until those have been maxed out.

I agree 100% with the above regarding VUL.

PUAs are a different story.