- May 21, 2001
It is worthy of considering an unfriend for recommending whole life insurance. In general terms, whole life tends to be a sub-par (high cost) life insurance blended in with sub-par (high fee) investments, and a bunch of mumbo-jumbo to make it all sound like it is the best thing you ever could do while obscuring the details and confusing the buyer.Did you unfriend him for that?
Some whole life insurance is good, but not much. Some people need whole life insurance, but not many. Thus, you should be very cautious when thinking about it.
Also, in general, whole life usually only turns out well if you do everything perfectly (always invest in full, with never a single late payment, over decades of time, some of which might involve unexpected things like unemployment or another great depression). But if you screw up once, then you often end up with a giant money pit and almost next to nothing to show for it. So you need to also consider your commitment and reliability when deciding to go down the whole life route.
A far better way to get it is to buy a really high quality term life insurance and then invest properly, like what is being discussed here. Why blend two okay items when you can instead easily buy two stellar ones?