Anonymous User wrote:Does anyone have experience with variable life insurance? Is this a reasonable investment vehicle for someone starting out in biglaw? I ask because I have a policy that I purchased when I was just starting in biglaw. Though it sounded great at the time, I'm now having serious second thoughts, and the articles I've found on the subject are not quieting my anxiety.
The policy currently has a surrender value of less than half of the value I've paid into it. (The policy has a 10-year surrender term - something I didn't appreciate at the time of purchase.) I've voiced my concerns to the financial adviser who sold me this thing, and he has assured me that the tax savings over a long period of time will more than make up for the substantial cost of insurance. I am unconvinced.
I'm not quite sure what my next move should be, so I figured I'd put it to the group. Any advice would be appreciated. The current cost of insurance is $67/month, and I'm a little over a year into the 10-year surrender period. If I surrender now, I lose ~$3,000.
Variable life insurance is more or less a scam. It makes sense to purchase only if your unable to get regular life insurance. Assuming you are under 30, and healthy, you could get a decent term policy for like, 15-30 dollars a month.
What do you mean you lose 3000? Did you invest 3000 into the policy?
Anyways, if you buy term LI and invest the difference, you'll have a better insurance plan and a better investment plan. The returns in life insurance policies are really, really cruddy.