I’ve heard every possible pitch as to why whole life insurance is a good idea. Did you know that we might not have Disney World if it weren’t for whole life insurance?
I’ve said so many times that whole life insurance used to be the only way to have permanent insurance. Today it is the WORST way to have life insurance. There is simply no reasonable justification for the product. It costs too much. Because the cost is too high, those who are duped into buying it leave themselves under insured. It’s a win/win situation for the life insurance company and the life insurance agent. If you are the proud owner of a whole life policy you don’t get to share that winning limelight.
After listening to Dave Ramsey on life insurance the other night, I felt it very much worth sharing. I know there are a lot of people that “don’t do Dave Ramsey”, but if you pull your head out of the sand long enough you’ll see that he’s right. Most people are plodding through life making one stupid money decision after another. Most of us try to fix one stupid decision by making another stupid decision.
A life insurance example of that would be admitting to yourself that you are having trouble saving money for retirement, so you buy a whole life insurance policy to fix that problem.
Bottom line. At least 95% of life insurance needs are term insurance needs. Those needs that are permanent are best covered by permanent insurance that does not have a cash value aspect to it. Stay away from whole life.
My 20 years of experience give me the knowledge and leverage to find reasonably-priced life insurance for people who have been declined or are paying more than they need to.
wow, another buy term and invest the difference pumper! Maybe you should tell the people how many term life policy claims are actually paid…? (most don’t die before age 65 and the insurance co wants your policy off their books by then!–who is working for you now?) or what the true cost of your term insurance is once you factor in the lost opportunity cost or “cost of money” on those lost premiums over the year? Try buying a “cheap” term policy at age 66 and beyond…and forget about using using the leverge of the death benefit to spend down other assets–your term life will have expired or lapsed before you will need it in most cases! hhhmmmm….just a thought. Get the whole story and think about who really is working on the insurance companies side! term insurance sales is easy commissions and it does not stay on the books! period! The Dave Ramsey and Suze’s of the world mean well I am sure, they just don’t look at the big picture and it’s easier to make a buck if you just go along with big business propaganda.
make sense?
Wow, another person that can’t manage their money and is willing to pay exorbitant amounts to an insurance company to save a little bit for them. Wow, another person that believes that all life insurance needs will go on forever. Wow, another person that thinks that term life commission is higher than whole life. Wow, another person who reads one blog and assumes that I’ve never talked about the real reason why term insurance is so inexpensive.
No, you don’t make sense. “Using the leverage of the death benefit to spend down other assets?” I assume what you were trying to poke at is the idea of using the cash value to pay off other assets? That is called shifting debt and putting your life insurance policy at risk.
Personally I think Suze is an idiot. On the other hand, Dave Ramsey seems to have stolen his life insurance play book from my 29 years in the business, so I don’t have a problem with his premise that people can do better managing their own money than any insurance company out there.
Why the erasing of my last comment. Please give me your thoughts on what I said.
I don’t feel obligated to post poorly thought out arguments from people that provide bogus email addresses. My blog. My policy.