Good video. Universal life insurance worked out for me. I got a policy through work at a time when I was a single bread winner with 2 young kids and needed insurance. The cash value paid a fixed rate of 4% including many years when you could not even get 1% risk free in other investments. Add to that tax deferral while I was in the top tax bracket. I have stopped making any contributions and the interest is more than double the cost of insurance.
One benefit of life insurance is that it goes tax free to your heirs. That can be of particular benefit if part of your plan is to spend down your tax deferred accounts and let tax free grow but you die earlier than expected. The life insurance can help your heirs pay the tax on the IRA and replace the tax free savings you had anticipated growing for them.
Good video. Universal life insurance worked out for me. I got a policy through work at a time when I was a single bread winner with 2 young kids and needed insurance. The cash value paid a fixed rate of 4% including many years when you could not even get 1% risk free in other investments. Add to that tax deferral while I was in the top tax bracket. I have stopped making any contributions and the interest is more than double the cost of insurance.
Sounds like it worked out!
One benefit of life insurance is that it goes tax free to your heirs. That can be of particular benefit if part of your plan is to spend down your tax deferred accounts and let tax free grow but you die earlier than expected. The life insurance can help your heirs pay the tax on the IRA and replace the tax free savings you had anticipated growing for them.
Tax free is nice!