Coffee Break – Episode 76: Whole Life, Rate of Return

What is the rate of return of a whole life insurance policy?  There are actually three different rates of return to consider – Internal, External and Eternal rate of return.  People often fixate upon the internal rate of return and do so incorrectly.  To properly make a side-by-side comparison, you need to strip away the multiple benefits a whole life insurance policy, issued by a mutual life insurance company may provide.  This is similar to comparing a single-blade knife to a Swiss Army knife.  One has a single function.  The other provides many combinations of useful benefits.