Financial advisor seems very strongly in favor of whole life insurance. Should I be worried?
My wife (26) and I (32) are beginning our retirement planning. I know I'm late, but we both finally have good incomes, and we are hoping to invest/save aggressively for the next 30 years.
Everyone we have spoken to scoffs at the idea of whole life insurance and says we should switch financial advisor based on him even suggesting it.
Here is his logic from a recent meeting recap. Can someone point out the potential BS?
"Jack advocated for whole life insurance with three contractual guarantees: guaranteed premiums, guaranteed cash value growth, and guaranteed death benefit. The cash value component serves as a non-correlated asset in bucket three (tax-free growth and distributions), compared to taxable accounts and tax-deferred retirement accounts. Jack recommended allocating 30% of annual savings ($15,000 of their $46,000+ savings) to permanent life insurance based on Ernst & Young research, with the permanent insurance mitigating six retirement risks: market volatility, inflation, interest rate changes, taxes, long-term care needs, and longevity"