That’s who I think life insurance is really for (me included somewhat). If ur already wealthy, u don’t Need insurance. And I don’t know Who’s paying That much for they’re whole life insurance. If that was the case, I’d just put that amount into an account for specifically that purpose, and move on.
i feel sad reading ur comment. (what u said is same for me too but i don't feel anything for me knowing that but reading ur comment made me emo lol. hope u have a good life ...or more happy n peaceful moments
Actually life insurance is a scam, the value of your money will be depleted by the agent commission every month, so overall you pay a dollar for a cent, theres no value, its just a cliche that pyour love ones will get but in reality your love ones will get more if its invested to a time deposit
Whole life insurance It’s a money management strategy not an investment! It has helped me take advantage of investments opportunities by me lending myself my own money while it still gaining compound interest. It’s useful to anyone with discipline to grow cash on the side accessible via loans that not increase your taxable income! It’s not an investment, but it’s a great money management tool!
If you don’t know throughly about whole life insurance. I think term insurance is the way to go. Life insurance is just the protection for early death to insure your love one and all the other expenses from you. If the money can cover until they can make their moneys, it’s good enough. They need to have their own way to fight their life. The main point is teach them financial literacy as soon as possible. It’s good to learn from these smart people or experienced people. It is never too late to learn. Keep up girl!🎉
You may have to speak to a more knowledgeable advisor. They should be able to answer all of your questions. Not saying an IUL or whole life will work for you in particular but it can make sense in some cases.
An IUL is an awesome product. It only goes up with the market. Your covered with your death benefit from day one and as your investment grows you can use that money for whatever you want and not pay interest to a bank. You can choose to pay it back to your cash value or not. If IULs were bad then why do so many wealthy people have them? You need someone that knows how to write them
They tend to forget to mention that they get a nice commission on selling whole life insurance to a person. Interesting fact to leave out or not to mention in my opinion
Listen, if you have $ besides your savings account to bury or cremate your loved one when they die, can take time off work to grieve and so much money that you don’t have to have ppl help you or do a go fund me when your terminally, critically or chronically ill. OR you can leave some behind for your kids or grandkids (that’s not taxed as income), then you don’t need life insurance and kudos to you. Know the facts first!!! Pleeease. You’re doing people a disservice.
This is exactly why I became an insurance broker. I see so many people giving wrong advice I'm all about helping the client out . I love selling term with living benefits
Maybe I didn’t grow up like you but living in the hood in Southern California it’s very common to see families at corners asking for donations or doing car washes cause someone got killed or died and didn’t have life insurance. I don’t want that for my family to take my burden when I’m gone.
Ok the $8300 premium can be structured where 10% goes to premium and 90% goes to pua. Pua is paid up addition. 95% of pua payments go into cash value. So a $8300 premium, cash value in year one could be around $7500. This $7500 grows tax free at around 3-5%. You can scale this down to $800 as well. Works with any budget.
ok but again, how many people have an extra 8,000 to put into their life insurance policy? that was one of the points she was making. That's 700 a month.
lol so not much more return with a high yield savings account these days, and the S&P index averages 10% annually over the long term. Just use a HYSA and save the fees
I think you have to understand the purpose of a whole life insurance policy, it’s a permanent product that accumulates money that you can borrow against if needed, and of course pays your beneficiary upon death whereas term expires and you will have to renew/qualify at your new age and health status. The problem with this video is that it can be taken out of context and come across as a deterrent to whole life insurance when it’s really ideal if obtained early in life or purchase on your children while they’re young and it’s still reasonably priced with a good amount of coverage. To truly educate on life insurance, it would take more than a 30 second snippet because really it should consider the specific persons need.
So is investing 9k a year in property that makes money for my family right now. Its a circular definition. But yes, depends if people intend to invest the money, although life insurance could be seen as a type of investment but far more circumstantial.
Well,I have state farm whole life insurance, pay over $100 a month for 5 years ,I called today and was told I have $259.90 I can use to take out.LMAO I'm canceling today and will invest that money on something with a real return.
Yes, if your term policy is up you will need to renew at whatever age, however, the theory of decreasing responsibility states that as you are younger you need more coverage because your debt is high and your children are young. As you get older, your debts are paid off and your children are now older so you won't need as much coverage. And with all the money people have to pay with those high premiums with whole life they can be saving/investing the difference by purchasing a term policy for way more coverage and way less cost.
@@westwood3286Try looking into an Early Cash Value policy. Guardian Life Insurance or Mass Mutual are 2 companies that offer these. I thought Term insurance was the way to go until stumbling across the IBC (Insurance Business Concepts) channel. Not trying to tell you what to do but this is another tool for educating yourself.
@@westwood3286 you have a really bad policy if that’s the case. Give me a shout and I can show you an illustration of what a good policy could do for you and show you future gains
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. when I’m 90 the account is worth $1.9 million. Conclusion is clear .:. Do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output .. I choose term and invest!
You should do more research on WL insurance Vivian. Ninety percent of life insurance agents don’t know how life insurance really works. It is not only for the wealthy. It can benefit everyone, especially if they understand you can leverage your CV and use $1 twice…(this is info the wealthy would not want the poor to know). Please research these two topics: 1. Net amount at risk. 2. How to max fund a life insurance policy using 90/10 structure. Best wishes and keep up the good work in helping to educate others on finance and investing.
Whole life is not an investment. There’s zero risk involved. It’s guaranteed compound interest. It’s more of a place to story your money safely with predictability
Whole life insurance and IUL etc is not only good for “high network folk” it’s good for small business owners, it’s good for people who have are not living pay check to pay check. Met Life is not the only insurance company. This video speaks to a percentage of people who can only afford a term policy. As an insurance agent I have to find what’s best for my client and there income. But this video makes whole life and iul seem bad when they can actually be your life saver.
Facts!!! NOT ALL COMPANIES HAVE UPFRONT COSTS AND NOT ALL COMPANIES ARE EXPENSIVE. It is a GREAT option to build cash value if you are young then it’s cheap. Not use can use it to retire and it’s NOT TAXABLE WHEN YOU TAKE IT OUT. It can also be used if you are critically, chronically and terminally ill. *she does not have all the facts.
I don’t know me and my other two sibling bought a life insurance for my dad so we split three ways. We thought our dad will live up to 80-90. But he died suddenly on October only 68 years old. We bought it like ten years ago, so I contributed like $25k and got paid out whole chunk. It’s bad to say that my dad is a good investment. And currently thinking buying more insurance on myself my kids and my mom. Every family situation is different so try to find a good wealth management for your family. Happy new years guys. May the best luck for all of 2024 .
This is misleading cause I have an IUL and I love it. The extra premium goes to chronic injury and illness too. Also, I can borrow against my IUL in times of financial trouble @ 4.5% interest which is a lot lower than borrowing from bank. Any loans on my IUL don’t reflect on my credit either. It’s not for high net worth people. Anyone who budgets can afford this. It’s how you prioritize your life.
I can break it down to you for free. A free financial education and also do your financial needs analysis for free. It's my way of giving back to society.
You forgot to mention that with term life, every year that you go to renew it the price goes up because your age is higher and if your health has changed at all they could straight up deny you. So you could pay all that money into a term policy for 20 yrs and be left with nothing. Say you decide to keep renewing your term even though it is extremely expensive, once you reach certain age you are no longer eligible. Whole life is more expensive for sure however, the price never increases and your coverage never expires. It is best to get whole life while you are young and healthy so you can keep a low rate for life.
Every product is different. You also pay fees in some investment products like 401K. Life policy is Tax Free as long as the person dies with the policy.
Your rich BFF? Every well known wealthy family has multiple life insurance policies that they borrow against and leverage money to cash flowing assets. It’s what the banks do too. You’re taking this way out of context sweetheart
I think you’re missing a lot of points here. We’re licensed financial advisors and see IUL’s as an amazing investment opportunity. You do not have to have a lot of money upfront and you do not have to have a high net worth. You simply have to be able to pay the monthly premium which we will NOT sell you until we see through all your monthly budget planning to make sure you can afford it. If for some reason you can not make your monthly payment your contract will just be set on pause, you still don’t lose anything. In the future it’s only going to get more expensive per individual or even unavailable due to various reasons, and there IS a “be your own bank” or “infinite banking” potential even for people who are not earning 6 figures. That said, you’re correct in that life insurance, being term or permanent, is not for everyone that’s why you have to sit down with a GOOD licensed financial advisor to walk you through all the options.
1. Money never enters the market - With an IUL, the money funding the cash value portion of the policy is never actually invested into the market. Instead, the insurer holds your “cash” and pays a return on the annual growth of a specific index. Anyone selling IUL are not required to have a securities lIC. 2. Growth potential is capped - While most policies have a “floor” of 0% which prevents your cash value from dipping below what you put into it, your growth potential is capped, too. For example, if your policy limits growth to 10% on the index and that index out-performs that percentage, you’ll still only receive the value of 10% in your account. The insurer keeps the difference. 3. No dividends - Dividends are completely eliminated in an IUL policy. Not having the chance to reinvest any earned dividends, as you could choose to do with an individual investment, means you could miss out on a great deal of money from dollar-cost averaging over time. 4. Fees, fees and more fees - IUL policies are packed with fees and charges that will eat into any cash value accrued. 5. Rising costs - The internal cost of insurance continues to rise as you age, which can limit the amount of money going toward any potential cash value. All universal life is A.R.T ( annual renewable term) PLUS: Almost all cash value policies have these “features” built in. • You’ll accumulate NOTHING in cash value for the first few years the policy is in force. • The cash value earns a lower rate of return (often just 2%-4%) than the potential return you could achieve if you put your money into a vehicle such as a Roth IRA in the U.S. • If you borrow from the cash value, you’ll pay it back plus interest. • If you die with the policy in force, beneficiaries receive the death benefit (less any outstanding cash value loan balance) while the insurer keeps any accrued cash value. Unless you have the increasing death benefit option (option b) the consumer will pay more for that option. The consumer always gets screwed when investing in these policies. The only winners are the agent and the company. The BS I hear all the time is it has to be "structured properly." I have collected 64 policies in the last year and I haven't I seen one structured properly.
your 100% right cause the person who is collecting the money can only pick 1 part either life insurance or the investment. so your building money for them to get too
I think your partially wrong if you have children it's actually good to get them whole life for 1 it will be much cheaper like i pay 80 a month and by time hes 10 it will be paying it self . and can build up also can use the equity to purchase wealth building assets.
Whole life is ALWAYS a problem. Mathematically it is ALWAYS better to buy a much cheaper term policy and invest the difference in an investment SEPARATE from a policy! The interest rate is VERY low (2-4%), you have to pay interest to the company (6-8%) to borrow your OWN money, the premiums are WAY more expensive than term AND if you die prematurely your survivors have to choose between the face amount and the cash account. Life insurance is intended to replace income in the event of a premature death. Children only need enough to cover final expenses if something were to happen. Term with a child rider is the BEST way to go!
Exactly. It’s not even about the monthly premium but just the fact that you are using the insurance company’s investment. They will charge you investment fees as well. The math is complex behind the scenes and when you co-mingle the death payout and investment it clouds your ability to determine whether it’s worth it
@@amaznngrace Because insurance is intended to protect income while you are young and building a nest egg. It should expire at the time of retirement. At which point one should have money in an investment vehicle like a Roth IRA and a retirement account at work (if accessible). You will ALWAYS have more in the investment account than a low interest whole life policy because of higher interest rates on the market (rule of 72). Also, the first 2-4 years none of your money even goes into the cash account with whole life. Go check your policy. It’s all there. The average consumer just doesn’t know how to read these policies or what to even look for. I’m a financial coach. I educate my clients about all this. I replace whole life then open an investment account. Mathematically one will end up with significantly way more money. If you are 65, kids are grown, house paid off and have a million dollars saved why would you need life insurance? You’ve become self insured at that point. There is NO, I repeat NO financial freedom in whole life. The company profits big time and the consumer loses thousands even millions in compound interest if they had of invested in the market.
Insurance (management of risk) and investments (a return on capital committed) should never be mixed. It is also an overly broad metric of 'people who already have alot of money' may purchase WLI, IUL etc.
I also like that my "investment" will never lose value if I just keep paying my premiums. On these last downturn, I just have gotten negative 30% but I got 4% return 🤷
My policy premium had never increased, and the interest you pay will be paid to yourself , since you are taking a loan from your own account, just like taking a 401k loan, you will pay no tax from your life insurance but will definitely pay tax on your stock earnings or 401k
@@alamgudiel7663 - I’ve been paying $30 a month for almost 40 years. My parents got me to get that policy when I got my 1st job when I was around 20 or 21.
There is ALOT more insurance than this. IUL variable etc. there are multiple forms of permanent insurance…. Just because you worked on Wall Street doesn’t mean you know shit about insurance… you’re not even licensed…
I’m glad someone said it bc I was about to go in!! She also forgets about the fact that if you put it in a regular brokerage account you’re gonna have to pay taxes on the income that you make and if you put it in an IRA you can’t touch it till you’re 59 1/2. Insurance has its appropriate uses for different things. She clearly doesn’t know what the hell she’s talking about. And I have worked in the securities industry and sold insurance.
I love your channel, you're the best. To be honest thank you for sharing such amazing information with us. I hope to apply your advice sooner rather than later. Take care
You have no idea what you are talking about. What about taxes and volatility-two big factors you are completely leaving out. And I’d watch your labeling insurance agents “scammers”.
To begin with she's misinformed about the 2 types of insurance. It's term & permanent life insurance. Whole life is a type of permanent insurance. Sis get it together!
One of my old co-workers has term life insurance. It ends when he turns 65. He would literally smoke cigarettes and say he needs to smoke more because he bet his insurance company he would be dead in 3 years....
There are actually more than 2 types of insurance. It’s actually universal life insurance that accumulates money annually. Whole life is just the cash value of the policy so it doesn’t generate any money beyond that. I guess you didn’t know this? 😂😅
You're clearly not informed on how life insurance works. You don't need to spend $7k a year and nobody does lol. Most people pay $100 per month for their permanent life policy. And it's not an "investment" because there's no risk of loss. Its only being sold as an alternative to savings or bonds. It doesn't replace the market and only supplements what you're putting into bonds. You just showed your hand that you're not educated on insurance and just did your research from googling for a few hours.
Calling it an "investment" is not legal for starters. Investments are taxed, life insurance is not. Its also NOT only for the wealthy, if your family needs to gofundme to bury a loved one, they NEED life insurance
@@robinmanansala7369 I had a friend diagnosed with AIDS in the early 90’s who did the same, but is that an option for all life insurance policies? He ended up living much longer than anticipated.
This is why it’s important to do your own research, this isn’t great advice. This is why I became a Life Insurance Agent, I love educating my community about term policies with LIVING benefits (you get a pay out if you ever became seriously ill, critically injured or developed Alzheimer’s.
Term life is better than whole life, absolutely! But you should have a strategy of paying down your debts and investing while paying your monthly term life premium.
I stopped at the scam!! Both term an whole can be beneficial depending on the need of the family. We can’t leave out the fact once term expires the client will have to be approved for another policy. Placing the client at risk of not being able to be covered
It’s unfortunate that you only provide one side of the equation. Whole life insurance is old news and many other permanent policies are available. Lastly, what about the tax burden on the “other” better way to get a higher return! In the long run an IUL is much more cost effective than a taxable investment! 👍
Hi, could you do more content about this? My mom is apart of an MLM and SWEARS by it. It’s for sure legit in the way that you have to be state licensed. But I can’t help but feel this is the only way to diversify assets and invest.
Also the advantage of whole life is if you borrow it, you're not borrowing YOUR money you're borrowing against it(collateral) so if you borrow against it to buy an asset you are using "the same money" to make money on the asset plus the interest in the policy though it is little interest
I wish people would mention that you have to have a bunch of money to spare monthly for whole life. And then you have to wait YEARS before you can "borrow" from it. Like she said "it only makes sense if you already have a lot of money".
@AirunDevon a bunch not so, ill give ex. If you can afford to straighten off pay for whole life. I think the best way would be to get a company that allows you to do term and with it. After the I think it's up to 5 years or 10 years. You have to transfer it over to whole life. And you're still able to lock in the price point and everything a good company. Or the one that I know is mass mutual. 40 dollars if ya healthy
I believe you are framing this in a misleading way. Whole life or an IUL is not an investment vehicle. It is useful for saving for supplementing retirement while securing a death benefit. Investing directly in the stock market also has more risk as most policies are protected against the downside which means your balance will not lose value during bad years in the market (which is about 1 out of 4 years) and gains are not taxed while stock gains are. The cash value can be borrowed against (accessed tax-free)at very low interest while the entire cash value still gets credited as if you never touched it. The cost basically $0 after 7-10 years since cash value will likely equal or be greater than total premiums paid in. In other words, it is a great product for people for several different reasons.
My credit union has it where all union members have a $5,000 life insurance. I know it's not much but it's enough to send me off. I have other investments.
I tried it once because I had several million in debt that I wanted covered in the event I died prematurely. What pissed me off was that the thing is automated but the firm would take fees out every month acting like they really did something special.
Whole life insurance may give you a lower IRR than the stock market but the volatility and Risk is also way lower. Better comparison would be mutual funds to whole life insurance.
What about the other important issue with whole life which is the fact that it’s not tax deductible? Double ouch for your wallet. Uh-oh 😢.I’m sticking with Term for sure.❤
I love your content usually but as a living benefits educator, you're misrepresenting affordable IUL options. Allow me to show you an illustration. Middle America deserves this option and it's available for them too
that's what i had in mind , if you have a boat load of money you can use let is whole life for tax cover purposes, but like taking 300$'/mo on average for example on an IUL or whole life that's a big chunk you're giving away when you could have done a roth ira with an 50$ term for 250k life insurance, you control your money as far as the roth is concerned and have enough for your family with the insurance.
i dont have alott of money and I have a IUL. the purpose of this was for me to work this with my budget. change your mentality. dont say i cant afford this its how can i afford this. im not even an agent. yes realistically most people can't afford a 300k IUL so just either lower the amount. i have an IUL and planning to get a term just so if anything happens to me it covers the cost of the house primarily
Insurance agent here; pretty much agree. Permanent life is best only if you’ve got the money for it. I might recommend a small whole life policy to a young person in combination with a convertible term policy which sets them up to have something in place even when the term runs out
I have life insurance because if I die, my family most likely can’t afford to even put me in the ground.
What a world we live in. Can't afford to live can't afford to die🤣
That’s who I think life insurance is really for (me included somewhat). If ur already wealthy, u don’t Need insurance. And I don’t know Who’s paying That much for they’re whole life insurance. If that was the case, I’d just put that amount into an account for specifically that purpose, and move on.
i feel sad reading ur comment. (what u said is same for me too but i don't feel anything for me knowing that but reading ur comment made me emo lol. hope u have a good life ...or more happy n peaceful moments
Actually life insurance is a scam, the value of your money will be depleted by the agent commission every month, so overall you pay a dollar for a cent, theres no value, its just a cliche that pyour love ones will get but in reality your love ones will get more if its invested to a time deposit
@@kawannahardy2924 exaclty. why put the money in somone else's hands if you can save it yourself? (save the money specifically for that purpose)
Whole life insurance It’s a money management strategy not an investment! It has helped me take advantage of investments opportunities by me lending myself my own money while it still gaining compound interest. It’s useful to anyone with discipline to grow cash on the side accessible via loans that not increase your taxable income! It’s not an investment, but it’s a great money management tool!
Thank you for this explanation! Now I understand how it can be beneficial! Yes I am very disciplined.
It's not an investment but it's helped you take advantage of investment opportunities. Like what opportunities?
If you don’t know throughly about whole life insurance. I think term insurance is the way to go. Life insurance is just the protection for early death to insure your love one and all the other expenses from you. If the money can cover until they can make their moneys, it’s good enough. They need to have their own way to fight their life. The main point is teach them financial literacy as soon as possible. It’s good to learn from these smart people or experienced people. It is never too late to learn. Keep up girl!🎉
I love that you give good advice every time I would try to find out about insurance I could never get a straight answer
Same
Thanks for the clear up, only for high net worth people!
You may have to speak to a more knowledgeable advisor. They should be able to answer all of your questions. Not saying an IUL or whole life will work for you in particular but it can make sense in some cases.
Be careful. If there’s no toll over option and you get diagnosed with something that limits your eligibility, you may end up with no insurance.
An IUL is an awesome product. It only goes up with the market. Your covered with your death benefit from day one and as your investment grows you can use that money for whatever you want and not pay interest to a bank. You can choose to pay it back to your cash value or not. If IULs were bad then why do so many wealthy people have them? You need someone that knows how to write them
They tend to forget to mention that they get a nice commission on selling whole life insurance to a person. Interesting fact to leave out or not to mention in my opinion
We actually make the same on both lol
Much less in the long run than your managed money account. Wake up and do the math
Residual > commission
And you work for free
Yeah, those terrible ppl getting paid to do a job… 😂
Listen, if you have $ besides your savings account to bury or cremate your loved one when they die, can take time off work to grieve and so much money that you don’t have to have ppl help you or do a go fund me when your terminally, critically or chronically ill. OR you can leave some behind for your kids or grandkids (that’s not taxed as income), then you don’t need life insurance and kudos to you.
Know the facts first!!! Pleeease. You’re doing people a disservice.
Yeah this video is meant for someone who doesn't understand life insurance at all. Not someone who has an extra couple million just lying around.
This is exactly why I became an insurance broker. I see so many people giving wrong advice I'm all about helping the client out . I love selling term with living benefits
Get a better job.!🤣🤡
So true!
@@eb9873 what’s a better job career expert???
i want to know about it. how do i reach you please?
Blood suckers
Been watching too much crime documentaries and I got to say the main down side is that your "loved ones" may unalive you.
Maybe I didn’t grow up like you but living in the hood in Southern California it’s very common to see families at corners asking for donations or doing car washes cause someone got killed or died and didn’t have life insurance. I don’t want that for my family to take my burden when I’m gone.
That's why you buy term life insurance at a fraction of the cost.
Can you talk about long term care insurance?
This is why I love you girl!! Keep it up!!
Ok the $8300 premium can be structured where 10% goes to premium and 90% goes to pua. Pua is paid up addition. 95% of pua payments go into cash value. So a $8300 premium, cash value in year one could be around $7500. This $7500 grows tax free at around 3-5%. You can scale this down to $800 as well. Works with any budget.
That's what I've researched, Cher thnx
ok but again, how many people have an extra 8,000 to put into their life insurance policy? that was one of the points she was making. That's 700 a month.
You can also take out policy loans immediately.
3-5 percent just do a high yield and avoid losing 800
Dollars in fees
lol so not much more return with a high yield savings account these days, and the S&P index averages 10% annually over the long term. Just use a HYSA and save the fees
I think you have to understand the purpose of a whole life insurance policy, it’s a permanent product that accumulates money that you can borrow against if needed, and of course pays your beneficiary upon death whereas term expires and you will have to renew/qualify at your new age and health status. The problem with this video is that it can be taken out of context and come across as a deterrent to whole life insurance when it’s really ideal if obtained early in life or purchase on your children while they’re young and it’s still reasonably priced with a good amount of coverage. To truly educate on life insurance, it would take more than a 30 second snippet because really it should consider the specific persons need.
So is investing 9k a year in property that makes money for my family right now. Its a circular definition. But yes, depends if people intend to invest the money, although life insurance could be seen as a type of investment but far more circumstantial.
Well,I have state farm whole life insurance, pay over $100 a month for 5 years ,I called today and was told I have $259.90 I can use to take out.LMAO
I'm canceling today and will invest that money on something with a real return.
Yes, if your term policy is up you will need to renew at whatever age, however, the theory of decreasing responsibility states that as you are younger you need more coverage because your debt is high and your children are young. As you get older, your debts are paid off and your children are now older so you won't need as much coverage. And with all the money people have to pay with those high premiums with whole life they can be saving/investing the difference by purchasing a term policy for way more coverage and way less cost.
@@westwood3286Try looking into an Early Cash Value policy. Guardian Life Insurance or Mass Mutual are 2 companies that offer these.
I thought Term insurance was the way to go until stumbling across the IBC (Insurance Business Concepts) channel.
Not trying to tell you what to do but this is another tool for educating yourself.
@@westwood3286 you have a really bad policy if that’s the case. Give me a shout and I can show you an illustration of what a good policy could do for you and show you future gains
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. when I’m 90 the account is worth $1.9 million. Conclusion is clear .:. Do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output .. I choose term and invest!
You should do more research on WL insurance Vivian. Ninety percent of life insurance agents don’t know how life insurance really works. It is not only for the wealthy. It can benefit everyone, especially if they understand you can leverage your CV and use $1 twice…(this is info the wealthy would not want the poor to know).
Please research these two topics:
1. Net amount at risk.
2. How to max fund a life insurance policy using 90/10 structure.
Best wishes and keep up the good work in helping to educate others on finance and investing.
That’s because the Wealthy have time to find this stuff out.. Regular people are out making the world SPIN
Research it where
What is CV? Please break it down for a toddler.
@@riifillCash Value
@@riifillCV is cash value that a whole life policy accumulates overtime! You can borrow out this amount at any time for any reason!
Whole life is not an investment. There’s zero risk involved. It’s guaranteed compound interest.
It’s more of a place to story your money safely with predictability
Great, how do I get this money out of "storage" without having to pay insurance company 8% interest and/or fees or defer it out of my death benefit?
Whole life insurance and IUL etc is not only good for “high network folk” it’s good for small business owners, it’s good for people who have are not living pay check to pay check. Met Life is not the only insurance company. This video speaks to a percentage of people who can only afford a term policy. As an insurance agent I have to find what’s best for my client and there income. But this video makes whole life and iul seem bad when they can actually be your life saver.
Facts!!! NOT ALL COMPANIES HAVE UPFRONT COSTS AND NOT ALL COMPANIES ARE EXPENSIVE. It is a GREAT option to build cash value if you are young then it’s cheap. Not use can use it to retire and it’s NOT TAXABLE WHEN YOU TAKE IT OUT. It can also be used if you are critically, chronically and terminally ill.
*she does not have all the facts.
I was gonna say, my policy is only 150 a month and I can make that work in my budget 🤷🏻♂️
you obviously have a conflict of interest being an insurance agent 🤦🏾♀️
IUL and Whole life are not the same
Exactly.. if the people who say these things actually had a license to sell any type of insurance maybe they would finally do some real research
Indexed Universal Life is by FAR a better choice than whole life. Far more profitable too.
@@phillipgoolsby5089 you are right.. so much better and terms end..
@@phillipgoolsby5089depending on your age and your health. If you’re unhealthy and old you’re sol for an IUL. Better off getting a WL/FEX
Index Universal life is a WHOLE LIFE product!
I don’t know me and my other two sibling bought a life insurance for my dad so we split three ways. We thought our dad will live up to 80-90. But he died suddenly on October only 68 years old. We bought it like ten years ago, so I contributed like $25k and got paid out whole chunk. It’s bad to say that my dad is a good investment. And currently thinking buying more insurance on myself my kids and my mom. Every family situation is different so try to find a good wealth management for your family. Happy new years guys. May the best luck for all of 2024 .
You could've bought term insurance at a fraction of the cost compared to whole life with a higher death benefit.
This is misleading cause I have an IUL and I love it. The extra premium goes to chronic injury and illness too. Also, I can borrow against my IUL in times of financial trouble @ 4.5% interest which is a lot lower than borrowing from bank. Any loans on my IUL don’t reflect on my credit either. It’s not for high net worth people. Anyone who budgets can afford this. It’s how you prioritize your life.
Extra premium for that, Term you don’t have to pay extra for all of that. Id rather invest money and only pay interest on gains.
Universal Life is NOT Whole Life
Thank you. I needed some to explain this to me.
Really like how you explained this insurance, hope you can have more vids in regards to insurances
I can break it down to you for free.
A free financial education and also do your financial needs analysis for free. It's my way of giving back to society.
Being a broker is ten time better than just an agent
You forgot to mention that with term life, every year that you go to renew it the price goes up because your age is higher and if your health has changed at all they could straight up deny you. So you could pay all that money into a term policy for 20 yrs and be left with nothing. Say you decide to keep renewing your term even though it is extremely expensive, once you reach certain age you are no longer eligible. Whole life is more expensive for sure however, the price never increases and your coverage never expires. It is best to get whole life while you are young and healthy so you can keep a low rate for life.
Every product is different. You also pay fees in some investment products like 401K. Life policy is Tax Free as long as the person dies with the policy.
Your rich BFF? Every well known wealthy family has multiple life insurance policies that they borrow against and leverage money to cash flowing assets. It’s what the banks do too. You’re taking this way out of context sweetheart
Well, most people that need life insurance aren’t wealthy
@@alamgudiel7663 Not True at all. Sure they don't "need" it by any financial means, doesn't mean its not a useful money tool.
Love the way you see things!
I think you’re missing a lot of points here. We’re licensed financial advisors and see IUL’s as an amazing investment opportunity. You do not have to have a lot of money upfront and you do not have to have a high net worth. You simply have to be able to pay the monthly premium which we will NOT sell you until we see through all your monthly budget planning to make sure you can afford it. If for some reason you can not make your monthly payment your contract will just be set on pause, you still don’t lose anything. In the future it’s only going to get more expensive per individual or even unavailable due to various reasons, and there IS a “be your own bank” or “infinite banking” potential even for people who are not earning 6 figures. That said, you’re correct in that life insurance, being term or permanent, is not for everyone that’s why you have to sit down with a GOOD licensed financial advisor to walk you through all the options.
Why IULs are garbage (from an actual fiduciary :)
1. Money never enters the market - With an IUL, the money funding the cash value portion of the policy is never actually invested into the market. Instead, the insurer holds your “cash” and pays a return on the annual growth of a specific index. Anyone selling IUL are not required to have a securities lIC.
2. Growth potential is capped - While most policies have a “floor” of 0% which prevents your cash value from dipping below what you put into it, your growth potential is capped, too. For example, if your policy limits growth to 10% on the index and that index out-performs that percentage, you’ll still only receive the value of 10% in your account. The insurer keeps the difference.
3. No dividends - Dividends are completely eliminated in an IUL policy. Not having the chance to reinvest any earned dividends, as you could choose to do with an individual investment, means you could miss out on a great deal of money from dollar-cost averaging over time.
4. Fees, fees and more fees - IUL policies are packed with fees and charges that will eat into any cash value accrued.
5. Rising costs - The internal cost of insurance continues to rise as you age, which can limit the amount of money going toward any potential cash value. All universal life is A.R.T ( annual renewable term) PLUS: Almost all cash value policies have these “features” built in. • You’ll accumulate NOTHING in cash value for the first few years the policy is in force. • The cash value earns a lower rate of return (often just 2%-4%) than the potential return you could achieve if you put your money into a vehicle such as a Roth IRA in the U.S. • If you borrow from the cash value, you’ll pay it back plus interest. • If you die with the policy in force, beneficiaries receive the death benefit (less any outstanding cash value loan balance) while the insurer keeps any accrued cash value. Unless you have the increasing death benefit option (option b) the consumer will pay more for that option. The consumer always gets screwed when investing in these policies. The only winners are the agent and the company. The BS I hear all the time is it has to be "structured properly." I have collected 64 policies in the last year and I haven't I seen one structured properly.
your 100% right cause the person who is collecting the money can only pick 1 part either life insurance or the investment. so your building money for them to get too
Its insurance. It has to cover the value of something or someone.
I think your partially wrong if you have children it's actually good to get them whole life for 1 it will be much cheaper like i pay 80 a month and by time hes 10 it will be paying it self . and can build up also can use the equity to purchase wealth building assets.
I forgot to mention the 80 dollar price point is locked in for life.
Whole life is ALWAYS a problem. Mathematically it is ALWAYS better to buy a much cheaper term policy and invest the difference in an investment SEPARATE from a policy! The interest rate is VERY low (2-4%), you have to pay interest to the company (6-8%) to borrow your OWN money, the premiums are WAY more expensive than term AND if you die prematurely your survivors have to choose between the face amount and the cash account. Life insurance is intended to replace income in the event of a premature death. Children only need enough to cover final expenses if something were to happen. Term with a child rider is the BEST way to go!
Exactly. It’s not even about the monthly premium but just the fact that you are using the insurance company’s investment. They will charge you investment fees as well. The math is complex behind the scenes and when you co-mingle the death payout and investment it clouds your ability to determine whether it’s worth it
@@rebeccahasspoken why would u buy term then it expires you've lost all that money
@@amaznngrace Because insurance is intended to protect income while you are young and building a nest egg. It should expire at the time of retirement. At which point one should have money in an investment vehicle like a Roth IRA and a retirement account at work (if accessible). You will ALWAYS have more in the investment account than a low interest whole life policy because of higher interest rates on the market (rule of 72). Also, the first 2-4 years none of your money even goes into the cash account with whole life. Go check your policy. It’s all there. The average consumer just doesn’t know how to read these policies or what to even look for. I’m a financial coach. I educate my clients about all this. I replace whole life then open an investment account. Mathematically one will end up with significantly way more money. If you are 65, kids are grown, house paid off and have a million dollars saved why would you need life insurance? You’ve become self insured at that point. There is NO, I repeat NO financial freedom in whole life. The company profits big time and the consumer loses thousands even millions in compound interest if they had of invested in the market.
Thank you for saying this!!
So happy that you're my Rich BFF!!!
Love your advice thank you
This is great info!!! Perfectly explained 🎉
Incorrect in so many levels 🤣
Insurance (management of risk) and investments (a return on capital committed) should never be mixed. It is also an overly broad metric of 'people who already have alot of money' may purchase WLI, IUL etc.
I also like that my "investment" will never lose value if I just keep paying my premiums. On these last downturn, I just have gotten negative 30% but I got 4% return 🤷
I got a cheap whole life through work. No networth so, it depends
it’s pretty much a roth IRA for wealthy ppl, lol
I appreciate your honesty
I’ve been paying $30 a month since the beginning of my whole life policy.
Make sure you read the print because the payment usually increases and also if it has cash value and you want to use it you will have to pay interest
My policy premium had never increased, and the interest you pay will be paid to yourself , since you are taking a loan from your own account, just like taking a 401k loan, you will pay no tax from your life insurance but will definitely pay tax on your stock earnings or 401k
@@alamgudiel7663 - I’ve been paying $30 a month for almost 40 years. My parents got me to get that policy when I got my 1st job when I was around 20 or 21.
There is ALOT more insurance than this. IUL variable etc. there are multiple forms of permanent insurance…. Just because you worked on Wall Street doesn’t mean you know shit about insurance… you’re not even licensed…
THIS PART!
I’m glad someone said it bc I was about to go in!! She also forgets about the fact that if you put it in a regular brokerage account you’re gonna have to pay taxes on the income that you make and if you put it in an IRA you can’t touch it till you’re 59 1/2. Insurance has its appropriate uses for different things. She clearly doesn’t know what the hell she’s talking about. And I have worked in the securities industry and sold insurance.
I love your channel, you're the best. To be honest thank you for sharing such amazing information with us. I hope to apply your advice sooner rather than later. Take care
You have no idea what you are talking about. What about taxes and volatility-two big factors you are completely leaving out. And I’d watch your labeling insurance agents “scammers”.
To begin with she's misinformed about the 2 types of insurance. It's term & permanent life insurance. Whole life is a type of permanent insurance.
Sis get it together!
Most people don’t live up to 100 years to get WL or permanent
They mean the same thing it’s fine
One of my old co-workers has term life insurance. It ends when he turns 65. He would literally smoke cigarettes and say he needs to smoke more because he bet his insurance company he would be dead in 3 years....
Explained very well! 👏🏼👏🏼👏🏼
Uninterrupted Compound Interest Account (Cash value life insurance)
There are actually more than 2 types of insurance. It’s actually universal life insurance that accumulates money annually. Whole life is just the cash value of the policy so it doesn’t generate any money beyond that. I guess you didn’t know this? 😂😅
And you pay interest on cash value
ULs, IULs, VULs, Whole Life are all garbage. Anything with "cash value" attached to it is a scam.
That's a big caveat to exclude. I always wondered about this. Thank you
You're clearly not informed on how life insurance works. You don't need to spend $7k a year and nobody does lol. Most people pay $100 per month for their permanent life policy. And it's not an "investment" because there's no risk of loss.
Its only being sold as an alternative to savings or bonds. It doesn't replace the market and only supplements what you're putting into bonds.
You just showed your hand that you're not educated on insurance and just did your research from googling for a few hours.
Its not an investment. Its a protection for your asset. Not meant for accumulation of wealth.
Can you do a video on annuities?
Im only paying $1300 yearly on my permanent life insurance and will have living benefits and cash value tax free 🤷♂️
Thanks Rich BFF… For explaining that seriously 👍👏✌️
Calling it an "investment" is not legal for starters. Investments are taxed, life insurance is not. Its also NOT only for the wealthy, if your family needs to gofundme to bury a loved one, they NEED life insurance
Thank you for this message
Good advice Vivian. I don't know too much about life insurance but I know it's necessary. Thanks.
It’s not necessary for everyone. I’m unmarried, without children. There’s no reason for me to have life insurance.
@@robinmanansala7369 I had a friend diagnosed with AIDS in the early 90’s who did the same, but is that an option for all life insurance policies? He ended up living much longer than anticipated.
This is why it’s important to do your own research, this isn’t great advice. This is why I became a Life Insurance Agent, I love educating my community about term policies with LIVING benefits (you get a pay out if you ever became seriously ill, critically injured or developed Alzheimer’s.
Term life is better than whole life, absolutely! But you should have a strategy of paying down your debts and investing while paying your monthly term life premium.
That's crazy calling people scammers
They are scammers.
I stopped at the scam!! Both term an whole can be beneficial depending on the need of the family. We can’t leave out the fact once term expires the client will have to be approved for another policy. Placing the client at risk of not being able to be covered
It’s unfortunate that you only provide one side of the equation. Whole life insurance is old news and many other permanent policies are available. Lastly, what about the tax burden on the “other” better way to get a higher return! In the long run an IUL is much more cost effective than a taxable investment! 👍
Really helpful
Hi, could you do more content about this? My mom is apart of an MLM and SWEARS by it. It’s for sure legit in the way that you have to be state licensed. But I can’t help but feel this is the only way to diversify assets and invest.
Love watching you. Could you make a video about the pros and cons of health savings accounts?
IUL is permanent life insurance that has death benefits, living benefits and a cash value component. Whole life is more for final expenses
Also the advantage of whole life is if you borrow it, you're not borrowing YOUR money you're borrowing against it(collateral) so if you borrow against it to buy an asset you are using "the same money" to make money on the asset plus the interest in the policy though it is little interest
I wish people would mention that you have to have a bunch of money to spare monthly for whole life. And then you have to wait YEARS before you can "borrow" from it. Like she said "it only makes sense if you already have a lot of money".
Agreed. It's about structuring your finances to build wealth. Which is something she isn't speaking about at all...
@@AirunDevonthe policy I have let me borrow after 30 days! The paid up additions rider that was added allows for early cash value growth!
@AirunDevon a bunch not so, ill give ex.
If you can afford to straighten off pay for whole life. I think the best way would be to get a company that allows you to do term and with it. After the I think it's up to 5 years or 10 years. You have to transfer it over to whole life. And you're still able to lock in the price point and everything a good company. Or the one that I know is mass mutual. 40 dollars if ya healthy
BLESS YOU I LOVE YOUR HUMOR .BRAVO👑💞💥💯
I really appreciate you
I’m sorry but being in the insurance field I have to say that you are 1000% unqualified for this topic.
Says the lying insurance agent.
Thank you Vivian! Finally, someone who puts some light to this!
True
If it ain't growing 100% YTD, run!
IUL and Whole Life are not the same. Also Whole Life are not investments and shouldn’t be sold as one.
Wow you are so real. Hahaaa. Love how you talk.
Incredible content! 👏
I believe you are framing this in a misleading way. Whole life or an IUL is not an investment vehicle. It is useful for saving for supplementing retirement while securing a death benefit.
Investing directly in the stock market also has more risk as most policies are protected against the downside which means your balance will not lose value during bad years in the market (which is about 1 out of 4 years) and gains are not taxed while stock gains are.
The cash value can be borrowed against (accessed tax-free)at very low interest while the entire cash value still gets credited as if you never touched it.
The cost basically $0 after 7-10 years since cash value will likely equal or be greater than total premiums paid in.
In other words, it is a great product for people for several different reasons.
Finally someone who gets it
My credit union has it where all union members have a $5,000 life insurance. I know it's not much but it's enough to send me off. I have other investments.
I learned this the hard way. Well no turning back
Thank you for this
Thank you for the info beautiful lady
It’s a good investment for the salesperson and beneficiary
I tried it once because I had several million in debt that I wanted covered in the event I died prematurely. What pissed me off was that the thing is automated but the firm would take fees out every month acting like they really did something special.
Whole life insurance may give you a lower IRR than the stock market but the volatility and Risk is also way lower. Better comparison would be mutual funds to whole life insurance.
Thank you once again.
What about the other important issue with whole life which is the fact that it’s not tax deductible? Double ouch for your wallet. Uh-oh 😢.I’m sticking with Term for sure.❤
Two main types? Whole life is something I would never get. Universal Life I do.
This why we say, buy term and invest the difference!
Thank you.
I love your content usually but as a living benefits educator, you're misrepresenting affordable IUL options. Allow me to show you an illustration. Middle America deserves this option and it's available for them too
It’s a fantastic investment if you start at 18, go with a AAA rated insurer, and get a loan rider.
I’m
28 is it too late?
@@TheBold1994 Not if you start with $30K and you’re okay with only $2 million at retirement.
Kind of like how some people peddle themselves as a financial guru meanwhile all they really did was use others for free food...
Thank you, for breaking it down. Whew.
Great advice, save me 💵, term life is good so 🙏🏿
I like the convenience of it 🤷
that's what i had in mind , if you have a boat load of money you can use let is whole life for tax cover purposes, but like taking 300$'/mo on average for example on an IUL or whole life that's a big chunk you're giving away when you could have done a roth ira with an 50$ term for 250k life insurance, you control your money as far as the roth is concerned and have enough for your family with the insurance.
i dont have alott of money and I have a IUL. the purpose of this was for me to work this with my budget. change your mentality. dont say i cant afford this its how can i afford this. im not even an agent. yes realistically most people can't afford a 300k IUL so just either lower the amount. i have an IUL and planning to get a term just so if anything happens to me it covers the cost of the house primarily
Insurance agent here; pretty much agree. Permanent life is best only if you’ve got the money for it. I might recommend a small whole life policy to a young person in combination with a convertible term policy which sets them up to have something in place even when the term runs out
But can you borrow against to whole life insurance? Take a personal loan against it?