Whole life insurance

My kids are young, 2 and 6. We have a 529 for them but lately I’ve been hearing about whole life policies for kids as a way to save for college. I’m clueless here and wondering if anyone can provide any information. Thank you.

Re: Whole life insurance

My experience has been they are VERY expensive with a small return of your money. We have term life, FAR more coverage for very little cost. You're better off getting a term life policy and taking the money you'd pay for a whole life policy and invest in something with a better return.

Whole life insurance

Friends of ours did it at the advice of a financial planner. We looked into it. The benefits are that the money can be used for anything, even if they don’t go to college, once they reach a certain age. But it’s a set amount.

We just have the 529 plan at the advice of our financial planner.

Message edited 8/4/2019 7:50:45 PM.

Whole life insurance

Not worth it. You can earn more money investing it yourself. We did a lot of research on this when my son was born.

Re: Whole life insurance

Oops edited because I realize you're talking about a policy on your kids. We have one on ourselves, to benefit a special needs trust for our son. I would look into other avenues though as it is expensive. Maybe look to investing it elsewhere.

Message edited 8/5/2019 11:44:43 AM.

Whole life insurance

I have a whole life policy that was purchased when I was about 7. It has a face value of 10K. If I were to cash it in, I would get the 10k. If I were to die, it is worth about 45K. Mine has a self pay option, so I no longer make yearly payments, the dividends make the payments and I am still earning a considerable amount. Is it going to make my family rich, no. But I keep it in addition to my term life to pay funeral costs.