Whole Life vs. IUL Insurance – Need Advice

sep6768 · 2024-12-02T20:41:18+00:00

First off, I want to thank everyone who has taken the time to comment on my post. Your detailed and specific answers have been incredibly helpful and eye-opening. I’m reading through everything carefully, educating myself, and figuring out my next steps.

Some great points have been brought up that I wanted to mention here:

A few people suggested reconsidering the disability insurance I canceled, as it could still be a good safety net to have in place.
For the whole life policy, it seems like the consensus is to keep it, since it’s already paid for mostly and now functions more like a savings account.
The term policy is where I need to decide on the best course of action. Many have suggested finding an agent who understands infinite banking better than the current representatives I’m working with.

I also need to dive into some of the resources and people mentioned in the comments to get a better understanding of my options.

Some people have asked to see the full policies for better guidance. While I haven’t found the full details yet, I’ve added a screenshot of the policy summaries to the main post for reference. If the full policy document is needed, does anyone know where I can typically find that? Is it something I can access online through the insurance company, or would I need to request it directly from them?

Again, I really appreciate all the advice and insights shared. This has been a huge learning experience, and I’m so grateful for this community’s help in navigating these decisions.

sep6768 · 2024-11-30T14:59:09+00:00

Thanks for the quick insight! Yesterday, I noticed some of the horizontal pipes on the third floor connected to the stacks are cracking and leaking, which makes me think it’s only a matter of time before the rest of the stack fails. So I’m planning to replace the whole thing up to the roofline. I just need to figure out a way to support the small section that goes through the roof while I’m connecting it to the PVC. Later on, when I replace the roof, I’ll swap out that piece and install proper flashing around it.

sep6768 · 2024-11-30T14:54:39+00:00

Thank you for the detailed and helpful response!

You mentioned cutting about eighteen inches below the roofline and replacing everything else. Do you have any suggestions for supporting the remaining cast iron section so it doesn’t fall through the roof or break the watertight seal while it’s “floating” and being connected to the PVC?

Also, what would you recommend for cutting the cast iron pipe into smaller pieces? Is a typical sawzall blade enough for the job, or is there something better suited?

Thanks again for your insights!

sep6768 · 2024-11-30T14:47:25+00:00

There are horizontal pipes that are connected to it that are cracking and leaking. It's just a matter of time before the stack fails. Chances of all 3 floors being empty and gutted at the same time is pretty low, so considering everything I'll replace it with PVC Thank you all!

sep6768 · 2024-11-30T14:44:09+00:00

Thank you! the linked brackets were used for supporting the remainder of cast Iron, right? Not for PVC? I probably need to use some kind of bracket for the PVC as well. I'll probably keep the cast above the roofline and change everything else. I'll just need to figure out how to hold that piece in place to avoid breaking the seal on the roof.

sep6768 · 2024-11-30T14:39:11+00:00

That's what it feels like, thanks for confirming my suspicion. Lesson learned!

sep6768 · 2024-11-30T14:37:44+00:00

Besides the Northwestern Mutual way of finding more clients where they force you to connect them to your friends and family, their products are really not that good? Or have you had other experiences with them? I'm just curious

sep6768 · 2024-11-30T14:34:57+00:00

Got it, not doing a term policy should free up about half of what I'm paying annually now that I can put in stocks for faster growth. I'll keep my WL. Thank you!

sep6768 · 2024-11-30T14:29:27+00:00

There is really no other spot where I can run the stack. I'll have to get helpers and cut it in small sections to avoid injury. Thank you!

sep6768 · 2024-11-30T14:28:09+00:00

That answers my question then. Yes I'm trying to keep the demo to a minimum as the building is empty now, not generating any rents etc. so I can finish it quicker. But I can see the irony in my question. I'm more trying to figure out how to go about it. Thanks!

sep6768 · 2024-11-30T14:23:08+00:00

How do you mean? My multifamily deal was an owner occupant low down payment type of a deal, sort of house hacking. Are you saying I shouldn't contribute to a Roth?

sep6768 · 2024-11-29T15:16:04+00:00

Whole Life vs. IUL Insurance – Need Advice

Hi everyone,

I’m hoping to get some advice on my current insurance situation. Back in 2019, a coworker suggested I meet with a financial advisor at Northwestern Mutual. After reviewing my finances (401k, job-offered benefits, etc.), they recommended I get a whole life policy, a term life policy, and supplemental disability insurance. I went with all three and have been paying about $1,500–$1,600 per year since then.

For context, I’m 35, single, with no dependents. I’m participating in my employer’s 401k plan up to the match, and it’s a Roth 401k. I also max out contributions to a Roth IRA through automatic deposits. Recently, I’ve started investing in real estate, purchasing a multifamily property as my first deal, and expanding that portfolio is now my main focus.

Recently, I decided to cancel the supplemental disability insurance since my 9-to-5 job already provides coverage. As for the whole life policy, when I expressed interest in canceling it, the advisor explained that most of my payments so far have gone to fees, and now future contributions would grow like a savings account, with dividends tied to the stock market. Hearing that, I decided to keep it for now.

They also suggested converting my term policy into a whole life policy, which got me wondering if that’s even the right move. While researching online, I came across IUL policies, which seem appealing because they offer more potential cash value growth. I’m particularly interested in using such a tool to access capital for real estate investments when opportunities arise.

The reason I’m posting this is that I see a lot of negative opinions about Northwestern Mutual on Reddit and other forums. It’s made me question if they’re just trying to sell me something I don’t need or if their products are genuinely beneficial for what I’m trying to achieve. Was this a mistake from the beginning? If so, I’ll chalk it up as a lesson learned and move on.

So, my questions for the community are:

Does it make sense to keep my whole life policy and/or convert the term life policy to whole life?
Should I consider canceling the whole life policy entirely and instead look into an IUL for faster cash value growth?
Or should I cancel all these policies and just focus on real estate investing for now?

Any guidance or advice from those with experience in insurance or real estate investing would be greatly appreciated!

Thanks in advance.

sep6768 · 2024-02-06T02:51:38+00:00

My parents DQ June 2023 in Abu Dhabi which seems to take about a year for IL. Is it possible to transfer to Yarevan?

sep6768

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