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Writer's pictureRobert Gourlay

Whole life insurance drawbacks



  • Whole life insurance costs five to 15 times as much as a comparable term policy which leads to the surrender of most whole policies.


  • If you surrender your policy too early, you can expect your cash value to be very low due to only a small percentage of your premium going into the savings account while the rest is used to pay for upfront costs like administrative fees and the agent’s commission.


  • While the forced investment aspect of whole life insurance can help some people save, most dedicated investment options (like a mutual fund or IRA) will provide a better return over the long run.


  • If you withdraw from your savings account in any way (such as a loan to yourself), the insurance company will charge you administrative fees, penalties, and other charges, and you’ll pay a tax penalty, which will eat into any earnings you’ve made on your savings.

For more information, please contact me. I will be happy to help with whatever questions you have. www.rgwealthsolutions.com +6011-51565649

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