Term Life Insurance Better Than Whole Life?
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All you need is term. If you save your whole life by the time the term is over you should be a millionaire and not need life insurance.
@@kyth4062 I am very naive when it comes to savings and life insurance. I am going to turn the big 50. I am separated from a 30 year marriage with nothing to show for it and no saving. I am thinking of life insurance for my son who has always had health problems. Really would appreciate any advice to get started. Thanks in advance. Blessings.
Carmen Reyes what state do you live in?
@@CarmenReyes-wv9oy Dave keeps misleading people on this issue. Yes I have a term life policy but I will not give up my whole life policy. I'm 41, I may out live my 30yr policy. At least I'm still covered by my whole life policy.
â@@kyth4062 As a licensed professional who specializes in both investment management and financial protection (insurance), this is the worst thing you could do for your family. I 100% agree with Dave's advice! It's been proven by all financial professionals that Permanent insurance (Whole life, universal life..) is completely unnecessary. The reason some companies still sell it is simply because they make more money off of you! Temporary insurance is the only insurance people should buy because insurance was never meant to be a permanent need. If a client does want insurance on their kids, then they should get temporary (term) insurance with a Rider that allows the child to buy more insurance without a medical review at a specified age. No one should ever buy permanent insurance! Those "savings" you've paid for x amount years, is literally your own money that you've paid., and are throwing away.
@@kyth4062 The idea of term insurance is to cover you when you need it the most. (when you have no money) and that money that you are saving in comparison to a whole life policy is what we recommend clients put into either a common sense or mutual fund investment which yields a MUCH higher return than the "savings" in a whole life policy. Granted, those you have both permanent insurance and are older in age, we recommend they keep their whole life because they either 1) won't be approved for a term policy if they are in bad health or 2) they've already paid it off as it was a small amount. Everyone is entitled to their own opinion, but from professional who holds a provincial license and has gone through the schooling, I can guarantee you a term life insurance is 100% better than permanent insurance
Love your videos and clips. Such easy explanations of insurance. I am thankful I found your book and all of your resources. Keep them coming. đđđ»
I needed this. This channel is the most informative on CZcams. Changing my families entire life.
Mrs. RN 2016 Iâm an insurance agent and I sell term
Yes ma'am..I agree. This channel will definitely have you on your game..
These Whole Life policies are sickening. They bank on the fact you will not know what you are purchasing. The language is in the policy but who reviews their policy BEFORE they sign it? These agents and companies do not want people to know this information.
@@mikesveganjourney3751 How is WL sickening? Why is the company banking on you to not read your contract?
Juan Velazquez 1 your cash value grows at a fixed rate 2 you borrow your own money 3 they charge you interest when or if you borrow 4 rate of interest to borrow is higher than interest gained and eats up the face value if not paid back (again itâs your money). 5 cash value is a living benefit accessible why you are alive 6 you pay for two things the coverage and the accumulation of the cash value BUT you only get one. What happens to the living benefit when you die? Education is key. These things are on the first two pages of a cash value policy.
Dave, you are a life saver! Great advice and honest opinion. Love all your videos. You just gained a new subscriber! đŹ
Been doing research for a few weeks đ glad i watched this.
This is interesting because about 3 - 4 years ago as I was setting up an umbrella policy (I did that early because I live in a community with an insane number of registered nurses and doctors who make 6 figure salaries), my insurance agent tried to sell me whole life as a way to minimize risk. In other words, even the courts admit that any cash value in a whole life policy is not your asset. I politely said no and left his office. If we continued to push it, I would have moved all of my policies to a different company.
That said, fast forward to today, I can at least tell him that he will not be able to underwrite life insurance on me at any price now due to a cancer scare 2 years ago. I got a small term policy before the cancer to pay off my mortgage and bury me and that is all I need since I am single and any funds needed to take care of my cat is dealt with in my will.
im so grateful for u and talking about this topic. im finally getting a policy for my 60 yo mom. its sad that i could lose her one day but i dont want my brothers and i to have to worry about funeral cost etc when the time comes. and this gave me so much info because i was going to get whole life. now term life is the way im going
Have you got One already ?
Dave, Great advice. What type of microphone are you using? Your voice sounds really good.
Thanks Dave, I appreciate the run down, this stuff gets confusing. I thought you got the cash value plus the coverage until watching this. Good to know because when you don't it just does not make sense to go with whole life. I am covered well with term life insurance, so I am better off in the next 20 years before I retire investing the money that I would put in a whole life policy into bonds or a good mutual fund and getting a decent rate of return. Thanks again!
Clint Mills until you lose that money
mine was cancelled when the insurance company found out i have leukemia .i paid on the policy for 10 years they wanted to renew it because i turned 50 . they found out about the cancer and that was it.
If you didn't stop paying, they can't cancel it. There is a consumer department in Washington, DC Google it, my mothers insurances tried to do that with her. I contacted this company and they had to reopen my mother's whole life, and paid for every month as the contract said if she became ill. The name is STATED OF WASHINGTON INSURANCE COMMISSIONER.
Wow
@@zodomagitana5595 i paid it non stop for 10 years it came up for renewal and they did a exam and checked my doctors and found out about the cancer. and cancelled my policy.
@@MrStarofTruth was this whole life or term policy?
@@jaredkuhn8116 whole life..
Love it , thanks for sharing your education and profession with us
All you need is Term life insurance. But dont forget to invest the difference in a great diversified portofolio for the long term.
Your sound is excellent and you have very good video! What are you using for a camera?
Great advice, thank you the video!
I just got term life insurance for me and my son, I had to convince my wife that whole life sucks. All I had to do is argue against the numbers, the numbers don't lie
I got a term life with a return of premium rider. So all my premiums I payed are returned to me if I outlive the term, or it goes back to my wife if I die.
Thank you for the information. Glad I found your site. Trying to leave something for my daughter.
Hey Moe. Are you still looking to get protected? I'm currently a licensed agent. Let's get in touch
wow love your clear speech on Insurance
Hey Mr. Ramsey could you do a video on your views on IULs (Indexed universal life)
its the same thing
wrong person to ask for an explanation of this. lol. he doesn't sell it. would you ask a car mechanic how to fix a airplane?
Whole life is robbery, the agent pushing that is a pos
Thank you!
When my nephew died he had a whole life policy in force. There was about $5000 in cash value at the time of his death. The insurance company paid the $25k death benefit & an additional $6200 which represented the vash value plus some dividends that had built up in the policy. I guess all companies are not the same.
What company was he with?
Debbie-Deb BossLadee all the companies are different
chinks717 the whole life insurance, the policy increases every time you pay
there's different types, but I will say, you can get more insurance and cheaper with term. As someone who's studied it, the likelihood of you getting paid right is slim.
How much was he paying a month?
I understand what he's saying about cash value life insurance in general being a rip off but about the Bank On Yourself strategy? Could someone comment on this?
I am 68 and have a whole life policy that is 10 years old and I looked into getting a term policy for a 15 year term and the premiums are greater than my whole life premiums. So I am stuck into the whole life. So Dave is talking about young people and not me. Thanks Dave anyway. God bless
Why do you have a life insurance policy? Do you still have a heavy/large house expense, and what happen to your savings account or better yet, why aren't you drawing from your savings each month to live on.
Dennis Adams you've made a great choice. Dave is wrong on this one. Life insurance is supposed to be life not for a short period of time. If you out live your term life now you have to spend extremely more on whole life.
Insurance is a young people games, unfortunately. The best time to get a policy is when youâre young and usually at your healthiest (not always the case). My mother is stuck with a whole life policy but had her insurance agent wrote her a 30 year (or 35 year term) she could have got her a whole lot more coverage for a lot less. Now, sheâs 60 and not as healthy as she once was, youâre right, itâs best she just stick with her whole life policy.
I'm a district leader at primerica and I stand firmly in what you believe. But term and invest the difference. I love being a life insurance educator
Jasmine Harris i have primerica life Insurance
That's fantastic I am going back to work with this company, I learned so much on personal finance before that I'm going back to work with them.
What city and state are you in Harris
High five partner. Proud of what we do
primerica=cult
-farmers insurance agent
Thank you, I have a final in risk and insurance and I swear we would always go back on these and I couldnt understand why one would be more beneficial. Love you daddy
Thank you so much
hey Dave thanks for the video I have a quick question you often mentioned whole life policy as being the worst Financial product as you did in this video which I understand. My question is there are other policies like universal life and variable life that have an increasing death benefit. In those plans if you were to die does the company pay out the face amount or the death benefit which is a combination of the face amount plus the cash value. I've read that there are options in plans that allow the cash value to become part of the death benefit. I get it that term insurance is the only Insurance you should buy I'm just curious before I cancel my 10 year-old permanent policy.
Actually I think what they call it as a level death benefit or increasing death benefit are those options for each type of permanent plan or do they just tell you that it's an increasing death benefit but really they find a way not to pay the face amount plus the cash value even though it's in the contract.
I appreciate your financial advice thank you
The most upsetting part is being charged to borrow your own money (and having to pay it all back to your insurer!). The "benefits" of whole life insurance cash value is easily gained through Health Savings Accounts, money markets, and other savings alternatives. I've read articles from other sources warning about the disadvantages of whole life, and my own mother who worked for nearly 20years in insurance doesn't recommend it. The only people whole life helps are those who are elderly, very sick, and without any savings with bad credit. These are also the most vulnerable kinds of people. Almost everyone else is better off without it. It just feels dirty to me.
"The most upsetting part is being charged to borrow your own money", except for the fact that as a policy owner you are also part owner of the insurance company (If it's mutually owned) therefore by law you also get your share of the dividend. The Profitable life insurance company pays a good tax free dividend which in most cases outpaces the interest you are charged to use your money. Everyone pays interest no matter what, you either pay interest to a bank or you give up the ability to earn interest when "Paying cash" like Dave Ramsey talks about. The key is to find the most efficient means to utilize your money.
If you were do the same function that the bank does (circulating money at a mark up) you can effectively become your own banker and make the same type of profits that the bank earns.
Other alternatives.. money markets, savings, CD's, etc you put the money in, you earn a rate of return, you die your family gets the money. A life insurance contract you put the same money in, it earns a higher (and tax free rate of return) you get access to to the money, you die your family gets 5 to 10 times the amount that you have put into it.
You have your 3-6 months Emergency fund in a bank.(lets say $50K) You die your family gets $50K.
You have your 3-6 months emergency fund at a mutually owned insurance company you have access to the same $50. You die and your family gets $300K (Which sounds like a better deal?)
Instead of listening to financial entertainers maybe read a few books (on both sides of the issue) and come to your own conclusions
Lisa Burke not with an IUL
I think it's sad you justify leveraging someone's emergency fund. That should never be used for investment purposes. Also, there are other ways to invest in a mutual fund apart from whole life. You might want to preach to a different choir, Mike.
Lisa Burke your not investing or leveraging your emergency fund. If you keep it in there it keeps growing, if you need access to it you have a contracted right to access it, either by taking a withdrawal or a policy loan. After the emergency you can put the money back, just like you would do with your emergency fund at the bank. Try reading the book becoming your own banker.
I am at least happy you admit that money put into whole life isn't an investment, but seriously "policy loan"? The whole point of having an emergency fund is to avoid going into debt due to an emergency. I think you need to find another church, Mike. I'm done.
I really appreciate your honesty Mr Ramsey..
It's gross how dishonest he is being. Not sure if he knows he's wrong or not but whatever.
Great explanation of term life insurance and whole life insurance. Thanks.
Thank you so mich for your advise. I thought i need whole life, but no insurance will give to my family if i die?
Two professional financial advisors I went to stated to stay away from whole/universal life and stated Dave is "correct." Yet, my insurance pressed me for the whole life as a "must do." Interesting! I am very upset my insurance agent was taking care of himself. He's no longer my insurance agent.
Just because an agent is professional, does not mean he/she has your best interest in mind. If I were talking to you, I would ask what your needs were and what are you trying to do or what are you using the insurance for. Then I would weigh your answers and tell you which insurance would best meet your needs and explain why. If it its not affordable at that time, then we look for a better package that meets your income limitations. Some agent sell almost nothing but one or the other. Some people need both. Some need Term and others need whole-life. It is not for me to say only one or the other will do for your needs. Whole Life has many different looks and purposes and it is more versatile than Term. Term is cheap, but rarely gets paid out. Most people find the Term too expensive to keep after age 65. At that age to switch to Whole Life is too expensive, also. So now you can't afford either one of them. If you get Whole life in your 20s, it is a bargain compared to Term. IT is still in force your entire life and the monthly rate never increases. If you live to retirement age, It changes to a extremely good Retirement for the rest of your life or until age 120. (which ever comes first) And yes, it can be made to be disbursed TAX Free for the rest of your life. And when you do die, there is a huge death benefit for your heirs, TAX FREE to them also. When Term expires. it is worthless. When Whole Life expires... Wait. It never expires until it is completely paid out after your death. When an agent tells you one type of insurance is worthless, regardless of which one it is, he/she is lying or badly mistaken. AND WE HAVEN'T even mentioned "Living Benefits" yet. Dave Ramsey really don't like that! Hey, even our Term Life has Living Benefits. That ought to make him gag. LOL
Randall, you are correct. I am thinking about selling life insurance as an independent agent. However, as an agent I will be able to sell ALL of the insurances, but I have already decided to sell ONLY term insurance even though the commissions are much higher for UL, IUL, or WL. My mission will be to sell more policies and sleep good at night knowing that I may never become rich, but I can sell part time and have fun and make a few bucks. I'm a big believer and providing the best value and letting the chips fall where they may. I will be taking after my insurance agent's footsteps. He mainly only sells term unless the customer demands to get ripped off and buy the others. There is a beauty in knowing you did your customers right.
Insurance has nothing to with wanting to die. It has to do with receiving needed money in case you die. Insurance is not supposed to make you money. If you want to make money, invest in real estate.
Sounds like you plan on being a broke insurance agent if you only want to sell term.
Yep. But at least I would sleep well at night. Although you can make a living off just term. But you have to sell quantity. Commissions are low for Term.
I love that I get to explain this to people and really help people
What company??? That's amazing!!! I can't believe people actually have cash value policies still!!!!
@@cbdances4god Why can't you believe this?
@@juanvelazquez5569 because from what I've experienced and witnessed 1st hand, they only benefit the agents who sell them!!! (The general public is being taken advantage of, and doesn't even know it!) I'd rather HELP people, not hurt them!!! (by ripping them off!)
@@cbdances4god Everything you said is still personal opinion. Do you have anything that's backed by math and science?
@@juanvelazquez5569YEP! Not my personal opinion at ALL! I only believe the facts, not what others say!!! đ€Ł I don't believe everything the internet tells me! I believe what the policies say (aka the fineprint), that the agents intentionally "forget" to tell their clients! The shadiness of those companies should be illegal!!!
What about Index Universal Life? Which are your thoughts about it?
Does Dave have a video about Limit Pay Whole Life policies? I have one of these where I will pay the premium for 20 years and the I have it for life or until 110 years old, but these videos don't talk about that type of whole life insurance.
Not all 'permanent' life insurance works like this. Dave might be right about whole, not entirely sure, but i've never heard him talk about any permanent life insurance other than "1-2% building whole life that charges you to borrow against the policy" I've never seen this kind of insurance myself.
I'm reading all these comments and now I'm getting conflicting information. What would you suggest the type of insurance policy for a woman in their early 30's with one child, healthy and non-smoker? I get a term life policy with FA of between $300k and $500k may be good because the premium would only be about $20 each month. Would you advise a whole life insurance policy as well? I live in MD if anyone is interested in selling me a policy I'm willing to talk.
I'm a new insurance agent working on getting licensed to work with clients on investment products like annuities and mutual funds as well. I've been a fan of Dave for a few years now, but I wanted to listen to what licensed insurance agents and financial advisors had to say about this before I took the job. Now that I've listened to both, I definitely side with the agents on this one. Dave seems to have some misconceptions and incomplete understanding of the different kinds of insurance. I understand I may be wrong - I'm still trying to learn more and more. Btw, it would be nice if Dave had that attitude more often instead of thinking his way is gospel. Definitely don't appreciate him saying whole life agents should be ashamed of themselves, but oh well. I'm not ashamed and won't be, mostly because my more senior advisors/agents and I provide complete information to clients. All that said, I love Dave and the good work he does for people. He gives so much sound advice for financial responsibility and his business leadership teachings are top notch. Just attended EntreLeadership in Dallas about a week ago!
Only 2% of term policies are paid out. My WL policies have purchased me vehicles and equipment for my business that brought over 300% rate of return without taxation. Continue to think small and you will continue to be small.
For young couples it's good to get a BUNCH of term while the life need is high, but it's not a bad idea to get some whole life too. Especially a limited pay policy they won't have to pay for after 15 or 20 years. That way they dont have to pay in retirement. Their money is guaranteed to grow and be there to supplement retirement if they dont need the policy anymore, or they can keep the life insurance if they would rather choose to keep the death benefit. Term can't guarantee you future life insurance, and God knows what your rate for another term policy will be 20 years later.
Great advice, thanks!
thank you DAVE RAMSEY
Umberto Fournier lol you still got term huh
Yep and he should and invest in a Roth IRA depending how old he is.
Great video and love the message. I am with Primerica and am extremely satisfied with term life insurance through them. Also have my retirement there to.
Logan Bankston Only 2% of term policies are paid out. My WL policies have purchased me vehicles and equipment for my business that brought over 300% rate of return without taxation. Continue to think small and you will continue to be small.
Good choice logan i have investment in primerica too and my life insurance. Great rate of return. I am so happy
One of my friends had wL. he passed away. Stupid WL insurance kept his savings. Worst insurance ever. Primerica term policys pay out over 99.9% of the time is just awesome
@@subjectmatteramateur16 đđNelson Nash d
@@subjectmatteramateur16 so you basically borrowed money from your own money to pay for all that stuff tax free? You do realize you could of done this WITHOUT that policy right?
Point is, cons outweigh the pros and its not even close!
Jay Troche you can not do the same thing without the policy. I still received dividends even though I borrowed a sum equal to my cash value. After only 5 years the accumulation is greater than the premium.
Point is the benefits far outweigh any disadvantages DR may paint.
Very nice thank u.
Thanks again
Why do they advertise 15% in the âindex cash value policyâ
They are both situational insurances. If you don't have anyone relying on you for income term insurance might not be necessary or at least not much. You may just need a small policy to take care of funeral expenses so your family isn't left with the bill. Whole life is just helpful at end of life. it won't help your family much with the exception of funeral expenses.
You just need to ask yourself "if I die early who am i trying to protect and how much is enough? (term insurance) & will I need a fund for funeral costs at the end of my life or do I have enough savings to pay for it?" (whole life)
I do see where he is comming from because from what I can tell he just plans on having enough term insurance to protect his family during his working years and will have enough money saved up to take care of his funeral. I think it boils down to when you die (young vs old) what financial protection the people who survive you need.
You should never need whole life insurance.. NEVER! Get term life to cover you during your working years. Upon retirement, if you invested like you are supposed to, you should have plenty of money for your family if you die early. You are in effect - self insured at that point.
Eye opener!!!
VERY ORGANIZE ,,LOVE IT
I have life ins. For 150,000.00 but if i get sick with cancer i can borrow money from there. For meds. And my son is cover with 10,00p automatically. What ur opinion please?
What about the idea of overfunding a IUL policy?
Iâve heard that it can also be setup to buy additional death benefits, or does this only apply to mutual companies that offer whole life?
IULs are garbage with their high fees/commissions and capped gains.
For term policies that are more flexible for underwriting someone with high lipids which insurance companies are likely to offer better value premiums??
any kind long term life insurance "whole life, IUL, VUL" or cash value policies is just very expensive
Jestic ofc. You overpay and get under protected. And never get to keep cash value without having to repay it or having it removed from your death benefit.
I actually enjoyed this video. I was not really sure what to expect. That being said.... One of the few who have made a very strong argument for the benefit of term insurance. Here are some caveats however... Unfortunately, no one likes to talk about leaving the planet. The reason that is important is because it is very easy for a 40 year old to believe that they will to be 70 or a 20 year old to believe that they would make it to 50 and beyond. The reason that is important is because they are now in a situation where they see themselves outliving their life insurance policy. The reason this is important is because now who knows if the person is insurable at that older age whether it is due to health conditions or just any other life event from just getting older.
As for sales people earning a commission... That is the nature of sales to earn a commission. More expensive whole policies should pay a higher commission. If term insurance was more expensive than whole life, than the term policies would pay a higher commission and sales people/agents would likely promote those products more.
I think the good news, at least from my understanding of the video, you are recommending that if people have to have insurance that they get a term policy. That's cool. I think the biggest issue that I see is that it would take people too long to grow $33/month in investments to have $10,000 readily available in the case of death of a loved one. That is only one example.
I would say that the more I learn about insurance that I still a big fan of whole life. I am just not a fan of paying life insurance for your whole life. The nice thing is that some insurance companies agree and offer 10 year and even 20 year paid up life policies. So I would say that whole life is not always all about a fancy savings account, policy loans, and high commissioned sales folk, there is a value in these policies. It is nothing more heartbreaking than hearing about a family setting up go fund me pages to pay for an unexpected death in the family.
In either case, you are alright with me! Do what you do Mr. Ramsey. I will go ahead and subscribe and try to check out some more of your videos. Peace...
mnash3 I agree with you, I just started my whole life insurance and I think it depends on the index, also when the term is finished I mean some people are in their 40âs as 50âs who is gonna Insure you for cheap...it wonât be especially if u have ailments or illnesses coming on, it wonât be cheap
Im glad Im watching this because, I need life insurance for myself and my son have whole life insurance and now Im about to change it to term insurance I believe its a bs thing for whole life insurance its time to do my own research
Financial literacy is key. I hope you found the best company with the best product. There are companies that only sell term and teach the difference.
I would implore you to not end your research with just getting a term life policy.
Step 1. Get a term life policy equal to your current death benefit. (i.e. match a $100,000 whole life policy with a $100,000 term life policy).
Step 2. Invest the difference your saving by converting your policy into the stock market.
Step 3. Read step 2, over and over until it sinks in.
Step 4. Enjoy the benefit of having a $100,000 policy that pays a death benefit if you die within the term, while investing money monthly that will eventually outgrow your desth benefit from your term policy if you outlive it.
Anthony Martin The concept is right. The vehicle is flawed. A whole life policy pays a death benefit which is what you want your family to receive. They do not pay the cash savings you built because that is a living benefit payable only if you borrow or surrender the policy. who benefits from a whole life policy? The term runs out. True. they can still buy another term under the âguaranteed insurabilityâ clause at a cheaper cost than a whole life policy.
@@mikesveganjourney3751 not really sure you're angle on your statement. What I'm advising is that she gets a term policy and invest the difference. In that sense, it will outperform her whole life policy. As you stated, the cash value is only applicable while living, you can borrow your own money, but it will cost you interest. Should you die, your cash value is calculated within your death benefit payout. If you put $20,000 into a $100,000 policy, your loved ones would get $100,000. $20,000 from your cash value and the insurance company would pay $80,000. That concept is flawed, especially considering you are paying 80-90% more for a whole life policy as compared to a term policy of equal value. Instead, have your money work for you gaining interest in an individual investment account. Take that 80-90% your saving and have it work for you, not against you.
Anthony Martin My misunderstanding. I misread your opening statement. âBuy term and invest the differenceâ since 1977. đđŸ. Got it.
Equity equity equity. Equity is the name of the game! Equity is high? You gotta smash it down!! Equity is low? You gotta raise it up high then smash it down
Thank you for this
I'm happy that Dave Ramsey is honest and tells the truth. I think it is gross how greedy insurance companies are. Thanks for the video and information.
Primerica has been teaching this concept since 1977
He's not telling the truth. The reason you dont get the death benefit and the cash value is because at that point you are only paying for insurance on the difference between the two. Very simple concept.
You know that he get a cut from everyone that buy an insurance from the company that he promotes?
@@jeremyed9507 - Another simple concept. You're paying for BOTH savings and insurance, but if you die, the insurance company says "sorry sucker, you're only going to get the insurance portion". Simple concept...it's a ripoff. Let's face it...doesn't matter what happens "at that point." What matter is the total amount that you paid, and what your return is. The fact that you ALREADY paid about 10X more than term...but are getting paid back the same...means...you're getting ripped off.
@@jeremyed9507 - Another way to explain it...if you have SEPARATE term insurance, and separate investments...if you die, your loved ones get BOTH. Very simple concept. Dave is right.
Hey guys, the idea is to take the money you save and now make sure you put money in an Roth IRA. Remember, life insurance is part of your financial plan. It's not the plan. Buy Term to protect my family for less cost and more coverage. But I also should be investing for my retirement. Worried about needing life insurance at retirement is for the person with no plan of having money and assets accumulated at retirement.
Amen! Finally someone who gets it! Thank you Tony! If people took care of business, aka Dave's Baby Steps, then they won't NEED insurance period! And this is exactly what he talks about. More coverage, cheaper rates, and then GET OUT of the need for insurance. People that depend on insurance have it all backward and do not have a solid plan in place. God Bless Tony!
Hey Dave,
I'd like to encourage you to touch bases with your broker/agent at Zander and ask them about Living Benefit programs. It's a form of term insurance that the insured can use while they are still alive (if needed). More and more companies are starting to add this "feature" to their plans but so few agents or brokers are using it.
It's great that they shop around!! So do we :-) However, product knowledge is key!! It's our responsibility as agents/brokers to help our clients explore their options and make educated decisions about the coverage they seek.
Hope that helps!! Thanks for your diligent efforts as you educate and build awareness about the things that matter to our community (or at least should matter).
No one is addressing the reason for life insurance policy, which you can call it by other names WL, UWL, IUL,VUWL, and the more the name changes the more complicated it gets. What is the reason for a life insurance policy, a savings account, to hide money and not pay taxes on the gains . What is it for.?
shan rite It wouldnt let me reply to your comment but look up the difference between average rate of return and compound rate of return. i had a very elaborate rebuttle for your comment but ill stiuck with this.
So how do I get out of a whole life policy I've been Paying for 9 yrs
You call your nearest Primerica office
chocolate cheesecake lol good one . taking out cash value one at a time
@@Alejo__ Wait for 1 more year and get your cash value the that the time to replace a term insurance..... there is a 30 years term....
Dave,
You are a great educator and straight shooter. Thank You very much.
Hey, Dave. I don't know if you'll get this message (perhaps someone else can help), I'm working on getting a license to sell life insurance. If what you say is true about whole life insurance, If I have to offer that option, can I present it without preying on people? I want to be an honest sales agent by telling the truth and allow people to make that decision as long as they understand the advantage and disadvantages.
Paulo Da Silva Iâm licensed agent. He is completely wrong.
If you talk with the company that you are going to be working for they will tell you.
Just ask this questions. How life insurance companies make money to pay the death benefit?
Iâve had a term policy since I was in my twenties. However it states when I am 67 my payments will go from $100 to $1000 a month. That doesnât seem right. What am I missing here? And if I donât pay that monthly I lose the complete policy!??
Thats something term insurance companies don't tell you.
@@johnd9541 đČ
The appeal to whole life is the living benefit. Also cash surrender. See money in a term policy goes out the window. You live the time period and you get a pat on the shoulder and the insurance company keeps everything you gave them. Whole life has one price set when you first got the policy. Whole also gains dividends every year if youre in a participating insurance company. And if you choose to stop paying life insurance cuz you dont need it, they give you the money plus dividends... while youre alive
So if I buy a term to 90 policy does that mean if I live to age 90 it will not pay out and I just lose what I paid in?
Yes... then you would have to renew the policy
VapeKing yes but youâd have payed 5/month instead of 400 with whole life
Yes, you can buy a universal life and can do a cash back for full amount at age 70
30yr term for me. $1,000,000 policy for $63 a month...
That's about right for typical 25-35 year old customer. 30 years will cover you plenty during the years you need insurance. Most people don't even need life insurance in their 60's anyway. Your kids are likely gone and married by then. People buy insurance for all the wrong reasons. Insurance is mostly needed while your spouse and kids are young and replaces a loss of income in case you die. Savings are best when kept separate in done in a 401K or IRA or real estate investments historically speaking.
There's a 98% to 99% chance you're taking a $22,680 loss on this 30 yr term. That's how much you'll pay in premiums for a product sold by a company that has 98% to 99% chance that it will never have to pay. Term insurance is a lucrative investment, not for you but for term companies like primerica and zander.
I would argue that the loss is much higher. Not only do you lose the $22K+ in premium but also all the lost interest/dividends that could have been earned if it were part of a more comprehensive financial strategy with higher premium whole life. Given a 4-5% irr on a whole life policy, that's probably a loss of 30-40K over a 30 year period. And then there is no coverage at the end of the term, when many falsely assume they won't need it. What whole life does, I think, the real secret of it, is eliminate opportunity cost. It eliminates costs that drag on one's complete financial picture- such as term life insurance. It recaptures interest paid to banks and other lenders. It eliminates taxes. It's truly a fascinating product.
I don't understand why, if someone boasts of the roth and diversification, it wouldn't make sense to allocate a percentage of the conservative portions of one's assets to whole life. If one is willing to forego the tax deduction by opening up a roth, and one needs some portion in conservative funds, whole life is a great option. There are no strings attached, as it is non-qualified, has better tax advantages, a permanent death benefit, and is entirely predictable in growth. If a 25 year old has 80% or so invested aggressively, and 20% in conservative assets, that 20% should be in whole life. It's the perfect fit for that area of his assets. I personally think the 401K and the Roth are gimmicks and would do all whole life; but as this individual feels the need to put 20% somewhere safe, and he knows he will get 4-5% tax free in whole life; and he will get a death benefit, why not just do that?
lennym480 thatâs what every type of insurance is!!! You throw your money away away until you need it. You see if you never have a car crash then you basically through all that money away on full coverage car insurance. If you can afford to spend 50-100 bucks a month on insurance to keep your mind at ease then you my friend need to learn to make more money or budget better.
Then what do you get?... if is not good at all why you got insured ? I am looking for advise because i have child and i need some security. Would you share what you got? Term or what. Thanks
I would choose a Term Life Insurance Policy for 20, 30 or 35 years and cover your child as a Rider. This will ensure that if anythings happens to you, that your funeral expenses will be covered and the expenses for your child is covered. I always ask my clients will your insurance be enough to help the guardians take care of your child through college. If that is no ,lets talk about increasing the amount especially if the gaurdian is living pay to paycheck but now has extra clothes to buy, extra food, extra school activities, etc. So think aboit that wheb you are choosong the roght amount of coverage that its not about you, its about who you are leaving behind.
tq sir
You buy a whole life cash policy, the insurance company takes your money and buys a term policy on you and invests the difference. Get the term policy! Lol
We are looking at getting life insurance for my husband. He is 29 and is in very dangerous construction. We have 2 kids and one on the way and I stay home with them and run the company office from home. I understand term is better, but what happens if you outlive your policy? Especially when we think of my 29 year old husband if we did a 20 year he is most likely to outlive his policy.
The money is gone. Term insurance is like auto or fire insurance. Is simply protection . That's why you should invest money into a Roth IRA. Have life insurance and savings separate..
You could get a whole life insurance that you can pay for only 20 years and be covered for the rest of your life .
What other investment option has a garanteed net% hire than inflation?????
If Dave Ramsey actually had a license to give advice on investments and insurance he would lose it for the sheer amount of inaccurate information in this video.
Yet you are void of giving us "corrected" information. You're probably a broke deep in debt American... I'll take his advice
Iâm 29 with 4 children. My husband and I were quoted $64 dollars a month for a 30 year term policy which is 250k each. So, my question is. Should I move forward with this for my children in case something were to happen or should I put the money in a Roth IRA? In which the kids can be the beneficiaries
The policy has no cash value!
You should do both so at the end of the term you will be self insured and no need for life insurance any more. Put the rest in a Roth IRA that you would save by not getting a whole life policy. Primerica has the best around!
althia lopez you should be able to do both honestly. $65 for coverage. Find a way to spare $100-150 a month for your roth and by the end of 30 yrs youll have roughly a quarter million by the end with the proper investment fund. I recommend this because ive seen ppl not make it to the end of the 30yr term and if they only had the investment their family wouldve been devastated. But at the end of the day i dont want to make you do something that youd possibly not want to do. Just my 2 cents.
Unlike whole life premiums, do term life premiums go up over time, or are they set at the initial lower rate?
Benita W they go up every year after the term itâs done
Benita, your Term Life Insurance premium should stay the same until the term runs out. Of you to renew it then the premium will be increased because you are older thatn you were at the beginning.
I currently have term life insurance for the simple reason that I am young and it affordable for my current situation. Having researched life insurance in all its facets I am a strong believer in a thing called "limited pay whole life" it's a simple concept, I pay a higher premium for a set period of time and then after that period of time is over, guess what, I not longer have to pay the premium. The life insurance is paid for, for the rest of my life. No worry about it expiring and having to try to get reinsured and paying more then double, I am done! Dave I agree with you on many, many topics, just not this one.
Mr. Wilson, you are absolutely right.
What insurance is the temp whole life?
I canceled my life insurance after I switched policies. At first it went from $78 to $95 a month for a $50,000 policy. I switched to term life, and my policy jumped to $135 a month. In no way am I paying that ridiculous amount, so I canceled. Iâm put off from buying life insurance now and will not be fooling with it anymore.
Let me pull up a quote for you. Whatâs your number
If you have an insurance contract with downside protection and guaranteed payout ( not an annuity either) you donât care about the short term. If you didnât invest part of your portfolio in this form then why not?
Dave is so adorable
This is eye opening
I Would like to get a 20 year term life insurance, where can I go to get a quote?
Jimmy Johnson Massmutual
No don't go with mass mutual they also sell whole life. The problem with there term policies is that when the term is up if you need to renew it becomes way to expensive and they will suggest you to convert to whole life. Our company only sells term 10 or 35 year or to age 95 if you want once the term is up you can renew without proof of insurability and it will be much less then any other company hands down!
An even better approach is to stop wasting money on insurance, loans, mortgages and other debt, and instead learn to live a sustainably affordable lifestyle. Investing in rental real estate has long been a sensible thing for those seeking positive cash flow and growing equity, plus you can bequeath your holdings to a beneficiary the same as you could an insurance policy.
This questions might be stupid but what happens to the money after the term insurance is over? Also does the term insurance increases as the years progresses within the term?
it is not stupid it is the most important question EVER in term life insurance. BUT no where not even Dave Ramsey will tell you in this video I like Dave but he is Mr. One eye in a blind city. You have to call and ask you insurance company you have to understand it for yourself and you have to ask for a written legal document. Take no financial advise 100% always do your own research.
After the term ends you loose the money .
If you buy a 10, 20 or 30 year term. It will stay same price but after the term itâs out. It will increase. And could be 10x time the cost.
Wile on whole life you would pay the same for ever, wile building cash that you can pull at tax free.
And on whole life you can do as short as 1 pay or 5 years and be covered for the rest of your life wile building tax free cash
If you expect to get back your money, you don't understand how insurance works in general.
I sell term with 100% Return Of premium. I have it and it makes since!
This is not always true, dependes on the rate of return you could get "investing the difference" One piece of information that you need to know is that the rider comes with a price. The ROP rider on average will run 20%-40% higher than purchase a policy without it. In addition, you have to keep the policy for the entire contract period to get a full refund of your premium.
Might be better to put pen to paper and see what the true difference is.
Andrea Banks, read ur policy. if u survive to 100 yrs old, or 120 yrs old, u get back all of ur money, but by then what u paid + compound interest it would = what u paid into the policy.
Michael Sparks where did you get 20 to 40% higher. for children rider?
Andrea Banks, by getting a second policy, there is a separate fee, but with a rider there is no separate fee.
So dumb. Just a gimmick by term life companies to collect higher premium without paying claims. Why let them accumulate interest on the excess premium? This sort of faulty reasoning is what drives people to think the way Dave does. Instead buy whole life and then you have options. If you want a "return of premium" cash it in at a later date; if you need the coverage, the premiums are guaranteed level or possibly "paid up" if it is a limited pay life policy. If one is willing to pay higher premium then they should definitely go whole life.
What do you get out of a time like you decide to cancel it? What do you get out of a term life if you outlive the 10 years
My husband is 69 is it good to buy a term life Insurance at his age it will go until he is 84
Which insurance is good for kids?
life insurance is not needed for children
so an endowment policy is a mad idea???...somebody answer me!
Iâm about to accept a offer on 20 years term ins 500k for $61 a month. Iâm 41, high BP & sleep apnea. Think itâs a good deal?
What company did u get a Quote from? Thanks
@@kateflorin818 I follow Dave Ramsey & he wears by Zander Life Ins. They call around and find you the best quote.
So what Happens when u end a term u just get another 30$ policy I thought it costs more and more as u get older
DejaAdor if you have a $30 term after itâs done, it will increase the cost. Yes you can apply again but if your health changed. They cost of the insurance could be high or maybe not able to qualify for insurance
At the end of your 30 year, if you have a Guarantee Insurability Roder on your policy then you can get the same coverage again just a higher premium because now you are a different age.
If you've been handling your money right, after a certain point you shouldn't need any kind of life insurance.
Can I switch my TERM LIFE insurance FOR a Whole life Insurances? I do have AMERICAN INCOME LIFE
Is Permanent life insurance the same thing?
There is no difference. A whole life and universal life insurance policy are types of permanent life insurance. The draw is telling you that your beneficiaries are guaranteed a death benefit if you die. So let's just say you have a permanent life policy that cost $250/mo and coverage of $200,000. Your policy will mature once you have paid premiums equaling $200,000. Essentially you are saving for your own funeral with no upside, especially if you die prematurely. Or you could put $50/mo into a term policy for 30 years and get the same amount, if not more coverage. If you outlive the term you paid $18,000 into a policy that won't pay a death benefit. However, if you die within the term you made $200,000 minus what you put in. But here's the upside if you don't die within the term; invest that extra $200/mo your saving into the stock market and you will have more than $235,000 within 30 years at a standard 7% rate of return. Either way you are losing money with a permanent life policy. And by the way a whole life policy of $200,000 with a 30 year maturity will cost about $550/mo. $200,000 divided by the 360 payments to get to that number, while a term life will still be around $50/mo seeing you are in good health. So, by not even investing half of the difference you will be better off. If you have $550/mo to throw into a policy, you will have $500,000 or more by investing that extra $450-$500 monthly into an investment account for the same amount your whole life policy costs.
What about MPI and RELOC
that's Primerica philosophy but all products have their place.. ppl need options
Veronica Chambers whole life is never good. Period. Explain to me how it would be. Explain to me why ppl must borrow against their own money. Explain to me why if i die my family receives only the death benefit. Sure i can get a UL where they can get both. But thats more expensive then if i were to buy term and investment the difference. You whole life agents are the most ignorant ppl ive ever met. Im going to continue to replace your policies
So I just got into the business. And they offered me National Life Group FlexLife II. I'm 26 single and don't smoke it's about $30 a month with a 50k Face amount? is it worth?
How many years?
30 a month for a non smoker and assuming all your health/weight is fine for 50k is Horrible!
At the bare minimum you should be 3x more of the face amount for that price with a Primerica term policy.
$30/month sounds way too low. Is that the minimum guaranteed amount?
Now life insurance became lifestyle worldwide. Your video helping people to get insurance policy and insurance agents are collecting inspiration đthank you đđ»
But in iul itâs gsrenteed min of 2%. Mutual funds u can lose it all
2%.....?????....that's a terrible ROI
I have both. But I don't pay into my whole life anymore because after 10 years that "savings account" pays for itself. I paid only 3% of the face value that my family will receive when I die. Moreover, the Whole Life converts to Disability if I am ever in need of that. So I have disability and life insurance and I will never need to make a payment on them ever again. I also have Term, too. But I'm still paying that.
I see how Whole Life could easily scam people though. Like MLMs do everyday, but Dave thinks those are great. Starting not to trust this guy very much.
its life assurance