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39 thoughts on “Why Whole Life Insurance Is A Rip Off!”
If you look at whole life from a selfish standpoint in that you only look at what you yourself can get out of it, then yeah I can see why you would view it as a rip off.
How else would you look at it?
So are companies like NWM, & New York life just scams at the end of the day?
Not really, they sell term policies as well.
I’m paying for 100k whole life insurance and I pay $52 a month at age 22rn for the rest of my life. I could die at age 90 and only have spent a total of $42,432. Thats so worth it for my family, on top of the company dividends I receive which I just reinvest for my beneficiaries to take over. It all depends on where you are at in life but I wouldnt talk down on either
He is wrong. the cash value is added to the death benefit. So you actually get both the cash value and the death benefit no matter what. not saying everyone should get whole life, but the value really depends on if the insurance company is mutual (dividend paying). it bothers me to hear him talk because he holds no licenses.
What happens when your term insurance runs out after 20 years and now you can no longer afford the premium for the exact same coverage at your new age and health?
If you can’t afford the premium on a term policy, how are you going to afford a premium on a whole life policy?
From Dave’s perspective, you should be saving up all those years so you won’t need whole life. I would agree with him on this one.
Buy term and invest the difference. Look up the rule of 72 and the theory of decreasing responsibility. After 20 yrs you should have enough money to be self insured
Do as I say, not as I do. Little did we know that Dave actually has permanent cash value life insurance. But he preaches for others looking into/need life insurance, to only look at term life insurance? What? How does that make sense?
@astroman30 sure about that? You keep thinking that
@Jay Where’s your PROOF to your claim?
“Whole life insurance is a rip-off”
*….Yes Guru Dave.*
Motley Fool (named top financial advisor by The Wall Street Journal) say the same thing.
What do you think about PFA life insurance?
I love how condescending he is while being completely wrong. Lol. Self insured is probably the most absurd thing I’ve ever heard. Wealthy people use the leverage of Whole life, the ones that could self insure but know it’s stupid. Also, Dave has deals and get paid to promote term insurance, so think about that. If you structure a fully participating whole life policy, it will be one of the best financial products in your portfolio. That’s keeping in mind you can find it. Saying one type of insurance is good for everyone is another laugh out loud statement.
You know what’s funny I just got my license a week ago and I know paid up life insurance gives you an increasing death benefit. Why he would advise someone to try to get the same outcome from a level benefit and do it so arrogantly is scary. I feel sorry for people who are taking advice from people like this.
Simple Question, what happens to the cash value when the person dies?
We bought whole life for our kids. You can’t get a decent term fr kids like 25k…this way we have a 100k death benifit per kid. And have money at the end not much but some.
The only reason a person should buy life insurance is to replace the income of that person if he/she dies. Or, in some cases, cover funeral expenses.
Now, I know better. Term life insurance is cheap for young age with no kids. if nothing happens within the term years, the money will go back to a company. It’s win win both, but now I’m old, my age is older than 42 yrs old, it’s very hard to find reasonably price premium. I supposed to never listened to this guy.
Buying an expensive whole life policy is not your best option.
Learn how to use whole life as an investment vehicle. More wisdom from Ramsey if you want to be middle class or below. Nice job Ramsey. Not all whole life polices the same and you must know how to invest your money yourself to truly make whole life policies powerful.
By all means, please explain how losing all your cash value to the insurance company is an “investment opportunity?”
With whole life insurance you can borrow against yourself and be your own bank and use that money to invest in real estate, stocks etc…
BORROW against your own money only for the insurance company to KEEP your balance, and you think this is a good idea?
I’m starting to think this mf made a deal or sold his soul to them “people” because everything he says not to do….WE probably should be…IJS
So using whole life insurance to give yourself loans while still building interest in wealth in your own policy is a rip off?
BORROWING against your own money for the insurance company to keep your balance, and you think this is a good idea?
@astroman30 When that loaned money still gets dividend, which more or less washes off the loan interest, yes? Not sure what you mean by insurance company keeping your balance.
@Linny H What part of “The insurance company keeps your cash value” do you not understand. “Dividends” per definition by the IRS are deliberate OVERPAYMENTS. Yipppeeee……I get a fraction of my money back.
Be disciplined and Save money on your own and everything will be alright haha
You know a video sucks when they disable the dislike button
It’s not disabled, stop lying.
Shut up Dave Ramsey. Crook
Yes you can pre pay for 10 years of insurance as well but you better make sure you die within that time frame or you wasted your money! I don’t believe he understands how whole life works.