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Maybe I don't understand it completely but it seems sketchy

Will this work with 1 or all of the Big 4

I would love it if you would show a pure base policy and how it performs. I am a big proponent of IBC but I am more a proponent of Whole life insurance as a whole. I would rather train my customers to hold on to cash that they do not need right away so that they can maximize their cash over the long haul. I know corporations may differ but I think we should steer people to look at their insurance as an asset for the long haul. Of course considering their age... as a factor. What are your immediate thoughts. Love your shows always!!!

This is just the latest version based on previous video(s) that Steve already did addressing this myth that 40/60 "gives you more cash value" than 10/90 - czcams.com/video/WRzRUgAtbDs/video.html (Dividend Study) czcams.com/video/T6Hk2y913JA/video.html ($100k per year) czcams.com/video/f32wIEisOcs/video.html (Agents commission)

My hunch is that you could open 2 policies at 10/90 and still pay less in comms than 1 40/60 and come out ahead!

Awesome explanation

Here is the problem with the 10/90 policy. If the client doesn't put in huge amounts of money into the PUAR the policy can become unstable as the client gets older. The 40/60 design is safer and more stable as the client gets older.

I gravitated to this channel years ago based on the IBC naming… but if truly embracing the concept of IBC, you’d be encouraged to maximize use of current and future human life value into completely non-blended policy structure. Of course the 10/90 blending markets well to scarcity minded perception that “paying less” and/or “paying for shorter period” is better. As for me, I want none of what underwriting will approve to be consumed by term policy rider. I absolutely will have future windfalls that will require capacity - for that I’ll want convertible term that term riders would conflict with in terms of human life value coverage. Couldn’t care less if break even is 5 years vs 8… my future self and my future family policy portfolio will want every dollar of future capacity.

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Thank you for the info !

Dave talks bad about you and your kind and has no problem with it. He insults insurance agents and basically calls them thief's, scammers, and criminals for selling whole life (this is usually true by the way?). I must agree that Dave is 100% correct but only maybe 90% of the time. Why? I agree with you that if a filthy rich person has extra cash to hide tax free and then to be able to use it to make more money borrowing from your own policy, then whole life is an unbelievably GREAT tool to use to keep and produce more wealth! For the average person suffering under Biden inflation though they cannot afford gas, food, or a home so putting $20K down every year for whole life if not doable. Whole life is almost totally a tool for the uber rich. I have 3 whole life policies on my children and had one on my mother and all 3-4 policies are crap and I should have invested in something else like Apple or Lockheed Martin stock. With that said, I purchased those policies while I was poor but now I am better off and I do plan to purchase between 3-6 whole life policies on kids and grandkids and fund them exceptionally well to create funding for my Family Bank in my Perpetual Trust in South Dakota which will provide income to all my descendants for hundreds+ of years I hope? Just look up the Rockefeller family "Dynasty" trust and see that they are all millionaires and it does work and whole life is the engine that drives the funding. My point? Whole life is just one great tool in a tool bag full of great tools so pick the right tool to do the job that actually fits it and don't let some insurance agent sell you a tool that does not fit your needs just so he can make huge commissions off of it. I carry a drill in my tool bag but I do not use it as a pipe wrench to fix my plumbing problems. I can drive a nail with a drill but it is not pretty and does not work as well as a hammer would. Whole life is for the rich and term life is for the poor and average people. Long Term Care is more important for the working people but that is another topic.

As a graduate of Dave's FPU, my feeling is he has done his reputation a great disservice, and has lost a good measure of my respect, personally. His ideas and plans to get put of debt, and manage your money properly are excellent. And if his belief was, that if you're struggling with your finances, you shouldn't buy into a whole life, but rather buy a term for protection at a manageable premium, that would be fine. But that's where he should stop. Not every product is right for every consumer, but some products are perfect for a lot of people. When he lays blame on an entire industry because he had a bad experience with a Northwestern product/agent, he comes off as an arrogant, uninformed person. His personality is abrasive, when it doesn't need to be.

Dave doesn't like whole life because he doesn't own a whole life company.

When he says the insurance company steals the cash value, that goes against the formula I learned on my exam: Net Amount at risk + cash value-any outstanding loans = Net death benefit. That's not even including the nonsense he tells his audience about dividends.

excellent video (as usual), keep 'em coming!!

Dave is a salesman, if he cant profit from a product he wont sell it.

Dave Ramsey financial education is perfectly appropriate for people with zero basic financial understanding. Basically, he can teach terms and definitions. After that, Imma say R Nelson Nash #ForTheWin

11:45 @Steve Parisi couldn’t you have gone even leaner and got north of $1.8M CV in first year?

I always appreciate how IBC (Steve Parisi and his firm) transparently discuss commission and that all important equation: higher commissions are of less value to the end customer, while lower commissions are of better relative value.

Personal finance is the broad net of the category, but in DR’s case it’s more appropriately branded “impersonal finance”. Even the calls that he takes from individuals, I don’t find have the due care that should be afforded an individual - there’s just not enough time given DR’s format, so I’m not devoid of respect for what is accomplished by DR for a mass market, generic advice for the mean or average caller. An individual should be able to assess that they are not receiving personalized financial advice over the span of a 10 minute phone in; but not all such individuals will realize this. 15:40 I don’t think DR would invest time to understand WLI because it’s not a product that is most suitable for the vast majority of his readership/viewership.

And like most fools they only know what they learned in school. Good book for you to read "what would the rockefeller family do" 5 generation of wealth and they did not use Roth Ira, they used whole life

00:00 People use whole life insurance as their own bank to gain more control over their finances and avoid paying excessive interest on traditional loans. 03:13 People use whole life insurance as their own bank by funding the policy to build cash value, avoiding traditional banks and using the cash for things like paying off a mortgage or saving money. 06:52 Whole life insurance allows you to borrow money at a higher interest rate while still earning the original growth rate on the full amount, providing compounding cash value and greater control over funds compared to traditional banking. 11:05 People use whole life insurance as their own bank by funding a policy, taking out a loan, and maximizing the cash value to use the money while still earning interest. 14:37 Whole life insurance can be used as a bank by setting up the policy with minimum insurance premium and maximizing cash value, allowing for loans to be taken out against the policy, which can be repaid to restore and grow the cash value over time. 18:25 Compare the growth of your money with the loan interest paid to the insurance company to see if you're in the black or red, and over time, the total growth should exceed the total interest paid. 20:28 People use whole life insurance as their own bank by funding the policy, building cash value, and earning 4-5% over time, while also accounting for loan interest and maximizing cash value with additional funds. 23:39 Using whole life insurance as a financing tool allows for maximizing cash value, compounding, and gaining control while avoiding dealing with banks and institutions.

A fool and his money shall soon part. Never Never Never buy Whole Life Policy. Insurance policies are not retirement vehicle a Roth IRA is.

Thank you for taking time to explain the process .. Keep up the good work !

I just wish for everyone to discover your channel .Thank you for this valuable insights.

Dave Ramsey also says credit cards are bad. I’ve made a lot of money off of the points from my credit cards

Did you mention you work with an attorney who can set up TRUST POLICIES??

Do you know what percentage of boli is whole life vs universal life?

Whats the LTV ? Up to what % of available cash balance can you borrow? It almost sounds like its 100% but that doesn't make sense.

Do you have to pay the loan interest bill ? Or can you let it compound?

This only works on non direct recognition life insurances. But Guardian does not have non direct recognition and Mass Mutual stopped offering high early cash value life insurance.

can a 20 year old get an annuity?

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The problem is that Insurance companies intentionally design the Whole Life Insurance policy the "bad" way. They make money better that way.

This cash value in Life insurance is a scam. Let's imagine it this way. You deposit $20,000 into my savings account every year. Don't worry, it will be safe. There is no stealing here. After 5 years, I'll call you and say, "Hey, your cash value has accumulated to $100,000. You can now borrow against it. But I will charge you 8% interest. BTW, I will also need to charge 1% maintenance fees." Do you now realize how stupid that sounds? Wow, I am making $9,000 (9%) per year from your own money. All I did was have this savings account. LOL.

15:10 Hello I was confused here, can u help me understand. They still have to pay their premiums but I see that their annual outlay is $0. If they still have to pay their premiums, how is the annual outlay at $0

Thank you so much for this detailed and clarified explanations .. God Bless !

I’m glad I found your channel.. I like the way you explained the pros and cons of both products. Thank you !

🎉 Well done!!! Thank you for making this video

49:00 for the “Chris” scenario, no need to commit to an annuity at age 59 - could grow the $700k for 3 yrs in CDs and/or MYGAs, to more than $800k - and then decide to partially annuitize at that time, if desired - another point about age 62, if holding equity in primary residence, could evaluate a HECM tenure payment to generate some of the remaining protected income that the clients seek

35:00 What are the high fees with an income annuity? (Whether a SPIA or a DIA.)

Hi Steve, what is the best way to contact you? i would like to learn more about the splits. 90/10 80/20 70/30 60/40 50/50

Interesting. I have a slightly different question. I have a variable annuity I purchased 3 years ago. After some research, I find that an income annuity would have been a better choice. What are the downside of converting a variable annuity to an income annuity? I would likely defer the income annuity.

Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.

Steve is 4% on $100,000 earned set at the time of contract? Or does it get set by insurance company once a year ?

Steve why did he have policies on his daughters and not himself?

Technically not a scam and maybe better than stuffing a matress, but definitely not worthwhile compared to other available products.

Insane yapping here

Excellent video. Very informative and easy to understand. Life insurance and financial strategies is such an important topic, and this video breaks it down perfectly. If anyone is looking for personalized advice or wants to explore their options further, feel free to reach out to me directly. Let's secure your future together!

31:20 a great Q to ask the advisor/planner/agent is what commissions correspond to the various options being presented, e.g. @Steve Parisi just disclosed in this episode that the commissions are higher for a FIA (indexed annuity) than for a SPIA (income annuity)