Whole Life Insurance during Covid and Inflation

[Anique Akhtar]

Hello,

I don't want this thread to become another WLI vs REI. I have gone through the previous post and I understand why some people like WLI and why some people despise it. My question was whether it is specifically worth it for me during current times.

I am 32 years old. Starting a bit late in life. Just moved and settled in the US, and getting a steady income. Don't have much savings or investments at the moment. I could personally save up to $3k per month after filling out the retirement plans. I was thinking of putting $1k in WLI, $1k in emergency savings, and $1k in other investments. I want WLI with maximum cash value and probably minimum death benefits. So when there is time for me to buy my first property (1-3 years down the line). I can take money out of WLI and make my downpayment. Then use it again years later for other investments. However, I am not sure how inflation and Covid are going to affect WLI.

So I have two questions:

1) Would putting the amount I am trying to put in WLI be a good idea, or is that too much?

2) How do Inflation and Covid affect WLI? I get it that my premiums would stay the same even with inflation, but probably my returns/dividends would remain the same at 4%. Is it a good idea to open a WLI during these times?

Thank you for your help.