You're looking for a schedule which will lay out the premium you will pay each year given your parents respective ages. whole life insurance is a scam as an investment. When permanent life insurance makes sense. Provided you pay your premiums, year in and year out, whole life policies never expire. Why Whole Life Insurance Is a Bad Investment. Transamerica (AEGON): 2.80% – Excels with living benefits coverage. So, tell yourself that you only have to pay $12k x 15 years and eventually you will get $500k + whatever paid up additions are acquired in 15 years. Steven Elwell: Whole life insurance can come with high premiums and high investment costs when dealing with variable universal life insurance. The moment a FI sells you whole life as an investment, is the moment you realize they are a crook. You will likely see higher returns through traditional investments like a 401(k) or IRA. I see you say whole life, can you please confirm that this is whole life and not universal life? A TERM policy will not build a cash value, has no living benefits, exist for a specified time frame and the premium will likely ncrease every two to five years after you renew. Steven Elwell: Whole life insurance can come with high premiums and high investment costs when dealing with variable universal life insurance. If they can roll over the term policy to a WL policy I would definitely do it. Life insurance of any sort isn't really an investment - it's something you get because you need to protect your loved ones if you leave them. If not, life insurance products are worthless to you at this point and you are just throwing money down the drain like buying disability products when you are not disabled (and then immediately tossing that product away before the product even arrives). Whole life is much more expensive than term life insurance, which expires after a certain number of years. If you want to invest, what you want is a IRA/401K/HSA/brokerage account. The cash value grows slowly at first but gets bigger over time. We get life insurance to protect our loved ones, our business partners, etc. TERM policies are cheaper when compared to WL though. The next thing you need to consider about cash value is that this cash value growth of 4-6% is tax free growth. If they already have some aggressive investments then cash value life insurance can be a good and safe investment to balance their portfolio. Log in sign up. This buildup in cash value is part of the reason the premiums on a whole life policy generally remain fixed instead of escalating to match the increased risk of death as you age. Now let's get to you. Since you said, your parents aren't in the best of health I would find a life insurance broker in your state. Let’s run some whole life insurance quotes for $500,000 for $2,500/yr. Arrive at the best car insurance quote The difference between term and whole life insurance Get term life insurance quotes Understanding homeowners insurance All about insurance. Get out ASAP. The simple answer: it depends. So if potentially passing away after one month, a huge ROI - but if living for 20 more years, then closer to 7% return. Again, thank you for the breakdown you provided. This is where your parent's portfolio comes in. Whole life insurance plans provide a permanent, "guaranteed" death benefit and build cash reserves as you pay into the policy. If you need a permanent policy, your assets exceed the estate tax, or you’ve exhausted other investing options, then you may benefit from investing with your life insurance Life insurance offers options as part of an investment portfolio. Will probably be a great investment for them at this point in their life but with life. It possible that whole life insurance – you buy whole life insurance is the form... 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