Whole/Universal Insurance by the numbers

[$ hoarder]

1. Does anyone have a spreadsheet or link that explains how in the long term having perm. life insurance doesn't make sense? I understand conceptually but would like a concrete example. i.e., Term insurance costs $30/mo for 20 years and you get $0 if you do not die. Perm insurance costs $350/mo with a cash value of X after 20 years. However, had you invested it instead you could have had Y.

2. When is perm. life insurance a good idea? I've read that it can be a tax shelter for those with several million to give to their heirs upon death. Is this true? With so many people against it, it seems as if there should be a reason for it's existence.

[disneysteve]

When is perm. life insurance a good idea?

Virtually never.

With so many people against it, it seems as if there should be a reason for it's existence.

It exists because it is a cash cow for insurance salesmen. They make obscene amounts of money selling this crap to uneducated customers.

If you search here, you'll find numerous threads on this topic. Let's not start another one please.

[disneysteve]

http://www.savingadvice.com/forums/investing-banking/79847-whole-life-insurance-investment.html

http://www.savingadvice.com/forums/investing-banking/75703-iul-vs-roth-401k-401k-vs-roth-ira-ira.html

Here are two threads on the topic. If these don't answer your questions, you are probably an insurance salesman.