Re: Life Insurance Annuity

Aug 13, 2007 2 Replies

Do you still need life insurance? If so, how much would it cost to get
> term life to replace what you have already?

If it "costs" at all, it invariably would be MORE than the contract of insurance that you currently own. I am NOT talking about ANY potential cost due to the market fluctuation, but only to the actual Life Insurance COSTS.



> If you can get term replacement cheaply, then you have to look at the
> expenses going forward. Are they low enough where tax-deferred growth
> can beat taxable investments?

ANY Term Insuranec product that "Might be issued" today MUST cost more that the on-going cost of a contract in it's 15th year.



> If you do decide to cash out, you should look into doing a 1035
> exchange into a Vanguard variable annuity. That'll defer taxes due on
> it until the time you actually need the money.

Without going into the merits of one company over another, the only reason that I can see for you to cash in the contract is to put the money to better use. Therefore why in the world would you start a NEW Contract, with NEW aquisition costs???????????????????????


The PRIMARY question to answer is "Is there a NEED for Insurance at this time".


Cal Lester CLU



Luckily Vanguard has no aquisition costs. All they charge is a 0.30% annual expense ontop of their mutual funds (which are industry lows). Depending on the asset class being held, 0.30% can pay for itself with the tax-deferral benefit.

I am NOT familiar with that contract. HOWEVER Are you saying that NO ONE receives a commission form the sale?????????? Cal

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