Ditch or keep Whole Life for college and retirement planning?
My wife is in year two of a Whole Life policy. It's complicated and I can't wrap my brain around it. I'd feel more comfortable canceling and switching to Term Life. Of course, our financial advisor insists we keep the WL policy for the purposes of having cash / cash equivalents available come time for child college expenses as well as cash available during retirement.
Brief overview: Mid 30s Married Couple Business owner and Stay at Home Spouse 125k annual income Spouse and I both max out Roth IRA Starting this year, maxing out HSA and letting it grow Hopefully maxing out SIMPLE IRA contributions
$500k in Retirement Accounts $100k in Brokerage Accounts $80k in College 529 $100k Home Equity $250k in Business Net Worth
My question is…. Is it necessary/good/bad that we're locking in $5,280 per year for my wife u til age 85 for the Whole Life policy that has a guaranteed $500k death benefit.
Yes, we need insurance for her as a stay at home parent. But is the Whole Life a good option for us? Our advisor wants us to keep it so we have cash or cash equivalent to use for child college expenses and/or cash available during market downswings in retirement.
Keep it or drop it?
submitted by /u/evbusiness
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