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Terry Said:

Life Insurance Question?

We Answered:

Your best bet is to contact an insurance borker in your area. They will have access to all the companies on the market and will be able to make a recommendation based on your personal situation. Some companies are cheap for young people but not as competive for old people, or cheaper for smokers, but not as compentitive for non-smokers. The Broker will be able to sift through all the companies to find what suits you.

Also, the person that suggested only term is way off base. Without knowing your full situation or the purpose of the insurance, it's impossible to recommend something specific like that. Whole insurance isn't only sold as an investment product, and that person is obviously confused between the differences between whole life and universal life insurance in thinking that. Both have a purpose for certain needs. Unfortunately when people don't understand how something works they call it a scam. If it was a 'scam' it would be taken off the market. Just my opinion.

Erin Said:

Should I buy cash value life insurance?

We Answered:

Strictly as an investment vehicle, cash value life insurance is not a good deal. If you need some extra insurance and make to much for a Roth, it might make sense.

Since you say that you already have a good term policy, just consider putting the money into stocks: buy and hold is a tax advantaged strategy. Even if you sell after a year, you still get a tax benefit. (I say this based on you saying you make too much for a Roth, which means you are in an over 30% tax bracket) long term capital gains are only taxed at 15%.

Christine Said:

What is a better life insurance company: Sun Life or Industrial Alliance?

We Answered:

ratings are tough to judge a company on alone. Sometimes they are based on the value of assets to see how stable they are. Sometimes they are based on market share.

Both are very stable companies and there is very little concern that either will disappear anytime soon.

go with the better deal price wise. Just doing some quick math, I would assume the IA one would work out to be cheaper: $120x12 months x15 years = $21,600. The Sun Life would would be more depending how old you are right now (if you're 25 and you have to pay until age 65 it's going to cost you $28,560 [$68x12 months x35 years]by the time you are done). Buy going with the IA one you will also free up some cashflow alot earlier and that $120 a month can then start going into retirement savings or an investment account or something.