Is Whole Life Insurance Ever A Good Idea?

https://www.youtube .com/watch?v=wRaQgtn4B78

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37 thoughts on “Is Whole Life Insurance Ever A Good Idea?”

  1. Ok but what about whole life insurance as, you know, insurance? I have a smaller whole life plan and a much larger 20 year term life plan, but what happens in 20 years when the term policy is over but now I’ve developed cancer or some other medical condition that makes me ‘uninsurable?’ I will still have the whole life plan and can even add to it. In 20 years my financial obligations ideally should be much less than they are now, so I won’t need the bigger term policy. I keep hearing about how whole life insurance is such an awful investment tool but what about those of us who purchased it to use as actual insurance?

  2. What about a subset of whole life insurance? My dad got me universal variable life (flexible whole life) where I pay 43 a month (516 a year). The face value payout to my dependents is 96k (that sucks because it’s not the 100k payout as they promised).
    Let’s say I die at 90 and so in 30 years, I would have paid 31k for this plan, for a payout of roughly 96k for my dependents. Is that so bad?

  3. The elite wealthy, banks, and corporations all use whole life insurance, why is that Dave? And how cheap is term the second term and beyond Dave? You can’t use your examples to argue your points only from the first term where it’s dirt cheap. Not all whole life insurance is the same 90% is junk and not all agents fit the breed and narrative you falsely propagate on your show. Life insurance isn’t an investment but it’s ok if insurance out performs investments lol. The way you describe the sequencing of using whole life you can tell you aren’t fully educated on the matter. You cherry pick your points to argue against. Using “you don’t get to keep the cash value upon death” shows you don’t understand how it works and haven’t done the math. When properly structured, you get a multiplied amount at death that transfers tax free to beneficiaries. No other investment can even come close to doing that.

  4. So if someone can’t qualify for Term due to age or health, they should just proceed to be uninsured. If people are 70 or over, they should become uninsured at 80. 🙄
    People should take financial advice from someone with a LICENSE (Dave hasn’t ever had any kind of financial license), and someone WITHOUT a paid endorsement by a Term Insurance company.

    1. The only time a person needs life insurance is if someone else (children, spouse) is dependent on his/her income. Otherwise, it’s not needed. The premiums on a WL policy is around $300 to $400 monthly. I would rather SAVE my money for burial costs rather than spend it on a trash value policy.

    2. @astroman30 Do you know how many families over 70 depend on their spouse’s income? How many seniors pass away and leave their children a house with a mortgage bill they can’t even float long enough to sell the home? Whole Life isn’t just for “final expenses.” It’s a way to purchase money there may not be time left for them to save, to protect the larger investments- such as equity in their home- their families would otherwise lose.

  5. Now, I’m still really lost. I have two children who are 18 and 20 and completely healthy. I just purchased two 30 year term policies which actually costed a few dollars more than the whole life plans. I agree with Dave that my children should have enough saved in 30 years to cover themselves, but I had cancer at 27 and I haven’t been able to go back to work. Luckily, I already had a whole life policy. If I had term life, I would’ve been stuck when the term ended because I wouldn’t be able to get coverage. What if that happens to one of my children? I’m not saying that Dave is wrong, but life happens. The whole life plan premium won’t increase and are the end of a 30 year term, renewing it is definitely going to cost much more. I almost feel like I should but one of each.

    1. @B. Davis For policy loan? Technically yes. My point is the death benefit grows as cash value grows, it does not remain the same 30 years later as when you first got it. A $100k death policy at beginning can become $300k death benefit in 30 years, for example.

  6. Dave is simply ignorant…or a liar. Hundreds of Banks and CEOs buy massive $dollar amounts of Whole Life EVERY YEAR. Why…because if it a great place for them to park no-risk or low-risk Capital on their asset books. Do these CEOs and CFP and top level tax-accountants know ¨Financial Planning¨ as well as Dave Ramsey…maybe so. LOL. Thousands of Tax-Attorneyś refer client to buy MILLIONS of dollars in Life Insurance…to pay Estate Taxes and leverage Charitable Gifts — two things they do NOT Dare Risk term insurance to do. Dave Ramsy, God bless him he is good on debt reduction and budgeting — but MASSIVELY IGNORANT about the proper use and structuring of Whole Life Insurance…especially for Estate Taxes and Charitable Giving. MASSIVE IGNORANCE.

  7. Just curious because I’m learning about insurance. What should a 80 year old woman get if term life can’t be qualified without raising high rates and they need to cover funeral cost?

    Would final expense be ok for that situation? Considering the older woman probably couldn’t save up in time when she dies and can’t qualify for a cheap term life?

    1. You only need life insurance if you have dependents. An 80 year old woman would, more than likely, have children who are grown and no longer depend on her income. Buying a whole life policy would be stupid. If you can’t afford the premiums on a term policy, how is she going to afford the whole life premiums?

    2. @astroman30 well that’s the thing. From what I’m reading up on. Final expense is not the typical whole life because It focuses on covering end-of-life expenses while most whole/term life insurance policies focus on income replacement.

      So the the cost is usually more affordable because it usually just covers the burial cost. I look up for 80 year old woman and the cost is usually 50 to 100 a month.

      In a perfect world, the best thing is to save up and budget this stuff out throughout your life. But sadly not everyone is fortunate enough to do this. So wouldn’t it be better for someone to get the plan who otherwise wouldn’t have enough time to save up 15/25k? Wouldn’t in this situation, money wise… wouldn’t it make financial sense?

  8. What many people are too blindsided to realize is that whole life life insurance isn’t an investment. It’s benefits you more than your beneficiaries. Whole life life insurance are more for people who aren’t family oriented and want to make money. Look up Infinite Banking Concept. Whole life life insurance allows you to be your own banker. If you actually want a life insurance policy that will benefit your family after your death, then whole life life insurance is not for you. Don’t listen to this guy and do your own research because at the end of the day, he’s voicing his own opinion on his own show lol. Where’s that financial calculator Dave?? Give us the link to that so we can help ourselves.

  9. Whole life isn’t made to be an investment people. It was made to take care of final expenses. You know the expenses people leave behind to their loved ones? Term doesn’t usually work for this tho because it cancels at age 80 and you have to be very healthy to even qualify for term.

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