Quote:
Originally Posted by NinjaSteve
Do you have it? How much and what type?
|
I have about 1.5M right now in death benefit between 2 policies (whole life and a VUL) which I started funding 8 years ago. I pay about $800 a month but it's permanent insurance not term so most of it goes to investment (cash value). around age 60/65 I will have between 2M - 3M in cash value. I chose to do more life insurance than I need because I wanted to fund more towards the cash value. You can borrow from (yourself basically) the cash value from your policy any time you want and pay no taxes or penalties. So when most people are pulling from a 401K or IRA when they are in retirement years I can "borrow" money from my own policy's cash value and not have to pay any income taxes. Not to mention in most cases if you break or pull money from 401K, IRAs etc.. before age 59.5 you will get IRS penalties as well.