https://www.youtube .com/watch?v=wRaQgtn4B78
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No one is 100% right about everything. Iâm still learning but this is the one thing that sticks out. Iâm not saying youâre wrong but Iâve heard a lot of different views.
Thanks đđž for the advice Dave!!!
Wow thatâs insane agents do that?
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 Iâve developed cancer or some other medical condition that makes me âuninsurable?â 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 wonât 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?
I would rather save my money and put it in a 401k and/or ROTH IRA than spend ridiculous high premiums on a trash value policy.
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?
Is there a cash value? What happens to that when you die?
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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.
Dave, I agree with you a 100%. Before I got into real estate, I sold term life insurance from a company whose founder was a former college football coach, initials ALW.
So if someone canât 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. đ
People should take financial advice from someone with a LICENSE (Dave hasnât ever had any kind of financial license), and someone WITHOUT a paid endorsement by a Term Insurance company.
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.
@astroman30 Do you know how many families over 70 depend on their spouseâs income? How many seniors pass away and leave their children a house with a mortgage bill they canât even float long enough to sell the home? Whole Life isnât just for âfinal expenses.â Itâs 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.
Agree, when term ends …..IT ENDS, you get nothing. Yes it does it’s job as a low cost policy.
Now, Iâm 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 havenât been able to go back to work. Luckily, I already had a whole life policy. If I had term life, I wouldâve been stuck when the term ended because I wouldnât be able to get coverage. What if that happens to one of my children? Iâm not saying that Dave is wrong, but life happens. The whole life plan premium wonât 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.
@Linny H donât you have to use part of your death benefit as collateral?
@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.
@Linny H only in ULI types?
@B. Davis also, even though there is loan interest, your cash value continues to grow as if you didn’t touch it, which more or less washed off the loan interest.
@Linny H the cash value is only available for loans? If yes, then are you saying the dividends paid will pay for the interest on the loans?
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-AttorneyĹ 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.
This guy goes above and beyond to try to sell his books. The stigma surrounding whole life insurance is ludicrous to me.
@astroman30 Every product has its benefits and itâs drawbacks. Anyone trying to sell you on one product, by disparaging another, is using clever/misleading sales tactics. Stay woke.
To be unclear is to be unkind
Talk about prime America
The difference being is you have access to your whole life life insurance as a loan
BORROWING against your own money, and you think that’s a good idea?
@astroman30 It is when the money still grows as if you didn’t if you got it from top mutual companies that still gives dividends on policy loans, which more or less washes off the interest. The “borrowing” thing is just a tax free gimmick.
Just curious because Iâm learning about insurance. What should a 80 year old woman get if term life canât 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 couldnât save up in time when she dies and canât qualify for a cheap term life?
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?
@astroman30 well thatâs the thing. From what Iâm 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 wouldnât it be better for someone to get the plan who otherwise wouldnât have enough time to save up 15/25k? Wouldnât in this situation, money wise⌠wouldnât it make financial sense?
Dave is wrong if I cash out my whole life policy I will have a profit of about 8000 dollars
You’re a a lying idiot.
I’m confused why dothe insurance people keep your money when you die? What’s the point of even investing then?
What many people are too blindsided to realize is that whole life life insurance isnât an investment. Itâs benefits you more than your beneficiaries. Whole life life insurance are more for people who arenât 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. Donât listen to this guy and do your own research because at the end of the day, heâs voicing his own opinion on his own show lol. Whereâs that financial calculator Dave?? Give us the link to that so we can help ourselves.
Whole life isnât 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 doesnât usually work for this tho because it cancels at age 80 and you have to be very healthy to even qualify for term.
You don’t need a trash value policy for final expenses.