4 ms·
The "Catch" with whole life is the expected returns are lower than term life coupled with clean, insurance free investment. You also have a entire industry of
by staticman2 4y ago
The "Catch" with whole life is the expected returns are lower than term life coupled with clean, insurance free investment.
You also have a entire industry of sales people spreading misinformation about how the policies work:
https://www.whitecoatinvestor.com/debunking-the-myths-of-whole-life-insurance/ https://www.whitecoatinvestor.com/debunking-the-myths-of-who...
- Bostonian 4y agoArguably whole life (WL) policies should be compared with buying a term policy and investing the difference in bonds, since WL policies are relatively safe. Then WL policies are competitive because of the tax benefits. WL policies will lag (term + stocks), but the latter strategy is more risky.