Looking at all these options, I feel just taking a term insurance and investing the rest of the money in long term dividend stocks like walmart, verizon, etc of my sharebuilder account which gained 20 percent is a better idea. None of these universal or variable can give me this kind of return. All of them have high administrative charges which eat up all the cash value. If you are looking for cash value just go for long term dividend stocks, because the money compounds.
1. The stock price risk is offset by the compounding of the dividend money. Suppose the stock price goes down 10 percent. That is off set by two year compounding of around 4 percent dividend money. So over a long time, it does not matter a 10 percent stock price.
2. Instead of giving the money like 400 dollars to Universal life which has high administrative charges and which equals you own money in 7 years, you can as well make a lot more money by just using Sharebuilder and putting the same kind of money there.
3. Take the term insurance you are really worried about Life insurance.
1. The stock price risk is offset by the compounding of the dividend money. Suppose the stock price goes down 10 percent. That is off set by two year compounding of around 4 percent dividend money. So over a long time, it does not matter a 10 percent stock price.
2. Instead of giving the money like 400 dollars to Universal life which has high administrative charges and which equals you own money in 7 years, you can as well make a lot more money by just using Sharebuilder and putting the same kind of money there.
3. Take the term insurance you are really worried about Life insurance.
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