Posted: 8/4/2010 12:17:32 AM
Life Insurance. Not Life Investment.
These universal and whole life policies exist for individuals who don't have the knowledge of how to invest on their own. With all of these insurance products, you are paying a large premium to have your money passively invested. Assuming you are not married and have no kids, you have no need for life insurance and should stay away from these products. 6.5% interest sounds great in theory, but like Mr Bollox said above, run your own numbers. These insurance guys are more salesmen than anything, and in this case, I'd say more likely than not, (s)he is incorrectly quoting the returns.
When the time comes for you to purchase life insurance (i.e., you have the need for the insurance it provides), term policies are the way to go