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Originally Posted by shakran
good plan, just one nit to pick. Unless you can use the life insurance to pay for the healthcare it shouldn't be counted toward your net worth - after all, you're really only worth whatever assets you can spend or dispose of, and you can only spend the life insurance when you're dead, so that's your beneficiary's net worth  |
That's incorrect. There are different forms of life insurance, and some of them can be used as savings vehicles. I'm using one now to partially fund my son's college education (partial in that there are other mechanisms doing the same thing). It's generally referred to as "whole life", which means that it never expires. You can "borrow" against it, although the insurance company is generally the "lender" and "loans" the money to you at no interest but deducts the amount from your benefits. In the long run, it actually saves them money since these policies are constantly growing.
I'm not a life insurance guy, but I've bought a bunch of it in the past 10 years.