Guys,

Excellant discussions! Please continue sharing your opinion and experience on this valuable subject!

This business of cashvalue in 15-20 Years is only an estimate! It is based on assumptions that are sometimes very optimistic and furthermore, it is you the individual that has to determine the asset allocation for your investments, ie where the premium less insurance cost is invested.

Clearly, most people will choose a conservative/moderate allocation. This allocation will rarely yield a rate of return in excess of 6 to 7%. With these projected rates of return, it would be difficult to produce cashvalue of the policies that the insurance agents are estimating!

Most Insurance agents will produce projections based on historical averages, and these averages will undoubtly include the exuberances of the late 80's! Hence, the rates of returns are not very accurate. Historical rates of return over the last 15-20 years have resulted in rates of return in excess of 13%. But, take a longer period of time and the rate is further reduced to 8%!

Also, never rely on Insurance agents projections of future cashvalue, these are always manipulated to entice a prospect to purchase a whole life policy!

I don't think that the cashvalue should be the determining factor when purchasing a whole life policy. In fact, there are several factors to be considered including those mentioned by members in this tread.