My mom is 55 years old and doesn’t have any retirement accounts. She does own I think 8 homes outright that are currently rental properties.
She just emailed all these whole life insurance quotes a state farm rep gave her and asked me to look at them.
Everything I know about finance tells me whole life is a big no no . Should I even entertain these quotes?
I thought she planned to live off her properties. What should I encourage her to do? Index funds in Roth IRAs?
Whole life is always bad?
Hi Veronica,
May I ask why your mom is looking into life insurance? If someone needs life insurance, as in they have people who are dependent on their income, we prefer term life insurance. It’s wayyy cheaper than whole life and you can use the rest of the money and invest it in index funds.
See this post:
It turns out it’s a hybrid policy that pays out for long term care. She’s afraid she won’t have enough to cover long term care should she need it. She already has term life insurance which honestly she doesn’t need since no one relies on her financially but she has it because it’s her way of having something to leave behind for my sister and I, just to be nice.