Life Insurance or Tax Free Retirement Plan? You Be the Judge! Insurance is a wholly unique field - one that is certainly tremendously challenging, and enormously rewarding. The reasons the rewards are really huge within the field is simply because it is not just an insurance plan that is being sold from the insurance broker. It is a whole list of knowledge which enables the consumer come up with a proper plan for his future, and hedge his investments accordingly. In fact, which is the reason plenty of insurance providers call their agents as financial advisors! That is just what these are. Back in 1993, I converted an entirely life policy with a major insurer in to a variable universal life (VUL) policy using a little known company. I did so based on a great sales pitch about to be able to retire being a millionaire if I would likely pay $200/mos to the VUL. I later found know that particular policy had not been within my interest so when I referred to as the insurer prepared to complain for many years, the customer rep abruptly stopped me from speaking and said, "I know youre upset but and we dont guaranty anything the agent says. We go strictly by whats inside the policy". So, I learned an invaluable lesson that I must be familiar with the text of life plans to get the best deal. Its a lesson true of many things in life: education is the vital thing. Experts argue, however, that return of premium life insurance coverage is actually much less great because it is made out to be. Consider that if the mother inside our previous example had invested her 30,000 over the years, she would experienced far more cash with dividends and interest. That is exactly what the insurer would do with her money, except they would maintain your dividends and interest for themselves. They also debate that as a result of inflation over time, the 30,000 could be worth less than it absolutely was initially. While this is true to a point, theres no telling what is going to take place in 30 years. There is also danger factor. What if she failed to out-live the premium insurance coverage policy term? Her child will be playing outright several thousand dollars in a very green investment farm without having returns whatsoever for your funeral or the first a few months without her or his mother. In addition, some financial pundits teach that life insurance should not be purchased on children given that they usually life insurance do not contribute financially on the household, and thus the death of an child wouldnt produce a financial burden towards the family. This needless to say is really a ridiculous statement. In the unfortunate event of an child dying, these pundits could have us believe in addition to the incredible emotional strain involved, the mother and father will be able to pay the $10,000 to $15,000 that the funeral and burial costs. I said 5% is not a good return. He rebutted by asking me if I have received 5% from my investments within the last 20 years, every year. That shut me up, as well as if you know I can take the money tax free at retirement. This converted me. I am purchasing a policy for myself and I am recommending the crooks to my clients. Also, there are ways to obtain the premium of these life insurance coverage policies with out them originating from your evryday living, that they also showed me.