My problem with this is that all the nay sayers keep comparing it to equities when its more of a fixed income alternative (if you need insurance as well). With this logic it makes no sense to have a savings account, CD’s or bonds, just throw everything into an S&P 500 index. I’m not hating on Vivian, it just that there is a place for whole life even if you are not rich. Now I agree that most people would be better off with term insurance.
I primarily make my living from selling casualty insurance and have been at it 40 years. I am also licensed to sell life insurance and will from time to time sell a life policy. My philosophy on life insurance for the general middle class market is that term is the Best Buy if you buy a low cost 20 year term and keep paying the premium! Whole life costs more and is a terrible investment but if you buy one and keep it, after 8 to 12 years, the cash value will exceed the total premiums that you pay in. The catch to such a policy is that your death benefit is reduced by the amount of the cash value and so a $100,000 policy with $50,000 cash value only pays a death benefit of $50,000 plus your cash value of $50,000 for a total of $100,000 and if you had invested this overage over your lifespan, your investment income likely would exceed $100,000. The insurance company is writing a whole life policy so that they can invest the premiums and make more than what they pay out in claims. Whole life is a losing transaction on the balance. In my opinion, term is the way to go but only if you buy a long term and don’t let it lapse and keep it in force. A whole life policy will stay in force if you hit a snag, lose a job, get divorced, etc by drawing on the cash value. A term policy is non forgiving and will lapse if you stop the bank draft or your bank doesn’t honor the draft. The other pitfall to term life is your health. If you buy term young and healthy, you can buy it cheap but if you develop a health issue and let one expire or lapse, you can’t replace it and wasted all your paid premium whereas a whole life policy might have been better. I once sold a sort term term policy to a smoker client that chose short term in the process of quitting smoking. He bought short term so that he could reapply later as a non smoker for cheaper rate. During the term, he had a heart attack and failed to convert his term policy to a whole life and was uninsurable on any life insurance option and I beat myself up over not convincing him to buy a 20 year term. Term insurance is cheap but I think dangerous for young people because term won’t be there if you hit a life snag and drop it. I’ve also presented life insurance to older business insurance clients that didn’t buy it but killed suddenly in accidents later with no insurance. I have had two instances of this and both of their businesses folded like a pair of twos in a poker game and leaving big financial messes. Whole life isn’t a good buy but if you are young with minimal net worth, I’d recommend some level of whole life with a 20 year term on top. When your net worth exceeds the life insurance pay out, you no longer need life insurance. This is just my 40 year observation. Any type of life insurance is good if you die while it’s in force. If you are young with a family and broke, you need something. Worst thing you can do is get too wrapped up in analyzing term and whole life and buy nothing.
@kathleenkirchoff9223on February 25, 2025 at 10:58 pm
As newly wed we got sold minnesota mutual policies that were supposed to grow a cash value and the premiums never go up. At age 64 they up rates from$300 a year to $3000 and claimed all our cash value went to service fees😢 when we ask for our cash value. Complete and utter scam and state insurance was no help. This was theft by minnesota mutual now own by Securian. Imagine if we had invested that.
She’s not a professional it’s not an investment as soon as she uses that word if she was licensed she would lose it. Whole life isn’t being pitched it’s IUL.
BEWARE of experts who only pitch products with volatility and risk of principal which life insurance isn’t
@Completehealingcpr19on February 25, 2025 at 11:04 pm
I sincerely appreciate the transparency of this video. Folks gotta stop allowing influencers on social media take advantage of them by buying whole life.
@MikePakaRoostahvellion February 25, 2025 at 11:06 pm
Thank you for posting this clearly, and in a way, the average person can understand.
It’s very annoying how these "content creators" and whole life insurance peddlers try to sell it like it’s a great investment for everyone. They are either knowingly scamming people or don’t even know understand the product that they’re selling.
Hey Vivian, YourRichBFF, FYI: it is a violation of NY Insurance Law to refer to Life Insurance as an "Investment". I’m a former (retired) NYS Prelicensing Life Insurance Education Teacher. I’ve never seen any Permanent (WL, UL, IUL, VUL, FPAL, etc) Life Insurance policy that outperforms Temporary (Term) Life Insurance policy plus a REAL investment sold by a Securities Licensed Representative. Life Insurance Licensed Representatives CANNOT legally sell investments. Love your postings even if they’re not technically perfect. Have you ever read "What’s Wrong With Your Life Insurance" by Norman Dacey?
Life insurance is NOT an investment at all. Anyone licensed or registered would know this and never use that word with with life insurance. Makes me wonder about this "expert"
@chibuezeonwunaka8098on February 25, 2025 at 11:16 pm
As a math teacher, a company by the name of PHP tried to get me to join! I did the math and it wasn’t mathing!!!! I abandoned ship and blocked them! It’s a bad investment for most people and the money these agents are making are coming from your monthly payments that aren’t being invested! It’s middle of the day robbery!
@ricardobarnett7716on February 25, 2025 at 11:18 pm
@yourRichBFF I don’t think you really understand the difference other than cost. Whole life is not only for wealthy, the strategy more centers around protection of capital because of the cash value. Life Insurance is not an investment, it’s protection against risk and the cash accumulated in the Whole Life can be used as an asset to get access to capital for opportunity investments. Also stock market can crash at anytime, so even the proposal you made is flawed. So you balance your portfolio with risk management and cashflow investment
@PraiseChristAlmightyon February 25, 2025 at 11:20 pm
It could be $12k a year and still be worth it. People are always so concerned with the losses, but never focused on the gains. You’re supposed to be offsetting that small annual fee with your gains.
She doesn’t know what she’s talking about. Term life is for 30 years. You will still need whole life once you surpass that. Whole life isn’t about just investing. It’s an addition to it. It would be prudent to get whole life eventually if you plan on living pass 60. You cant have term life at 80 years old. She’s clearly doesn’t understand the difference. Also whole life is only that expensive if you get a million dollar policy. I pay $75 a month for a $250k policy. I’m covered for my entire life unlike term life.
This is kind of the story of late capitalism in general. Try to get people to buy all sorts of things they don’t need, thus creating markets and economic growth for the producers of these things, whether or not the consumers are actually benefited by consuming them.
There are so many trends that I am completely out of the loop about, what to buy, what gadgets are nice, what kind of clothes are in style, what the hottest restaurants are in my neighborhood. I just save my time and money and invest.
Well, what she’s not explaining is term insurance policies overtime, the premium will almost triple. Not a fan of IULS. However, whole Life Insurance is a great strategy to reap the living benefits tax free and secure passing down a tax free benefit to your loved ones. With a properly structured whole life policy There is a level premium overtime your dividends will pay your premium. And if we do fall into a recession rate of return on your insurance policy will beat the market depending which provider you’re insured with
Whole Life is a good investment (savings vehicle with exponential growth potential) if you start early as opposed to waiting until you’re middle aged when it costs more. The stock market is not a better investment vehicle over time across the board but people do what is advertised/promoted the most. In this case, Wall Street or the stock market.
Yes. I was told this by an agent. I took the test to become an agent and passed it only to be educated enough not to be scammed. Whole life structured for high cash value is a good investment if you’re putting in about 100k a year as this is wealth protection.
Price both Term & Whole Life, then… buy Term and invest the difference.
It’s been said for a long time, but never so well as here. Whole Life is for rich people, like politicians.
Life insurance can create an immediate estate. It can be a great tool if you want to create generational wealth. It’s tricky, if you’re lower income you have to eat and pay bills do you buy a policy or pays for current necessities. This is how generations get wealthy. Have to start somewhere.
It is not exactly true. Don’t forget taxes. Sweet income tax and capital gains.ohhhh, and lovely 401k, 403, etc. Please don’t call people scammers. The stock market is not for everyone either… term is a huge waste of money. Every investment requires right structure and purpose. Term insurance gets really expensive when people get into thier 50s and 60s this is why they drop insurance when they need it most. Guys, don’t forget, youtube is the entertainment not a professional advice.
Life insurance is a protection, not an investment. My agent always emphasizes this point.
You protect your family IF something bad happens to you. So many people gofundme and struggle financially after losing one stream of income.
People are putting it
the wrong way and make
other scared it is a scam.
My problem with this is that all the nay sayers keep comparing it to equities when its more of a fixed income alternative (if you need insurance as well). With this logic it makes no sense to have a savings account, CD’s or bonds, just throw everything into an S&P 500 index. I’m not hating on Vivian, it just that there is a place for whole life even if you are not rich. Now I agree that most people would be better off with term insurance.
I primarily make my living from selling casualty insurance and have been at it 40 years. I am also licensed to sell life insurance and will from time to time sell a life policy. My philosophy on life insurance for the general middle class market is that term is the Best Buy if you buy a low cost 20 year term and keep paying the premium! Whole life costs more and is a terrible investment but if you buy one and keep it, after 8 to 12 years, the cash value will exceed the total premiums that you pay in. The catch to such a policy is that your death benefit is reduced by the amount of the cash value and so a $100,000 policy with $50,000 cash value only pays a death benefit of $50,000 plus your cash value of $50,000 for a total of $100,000 and if you had invested this overage over your lifespan, your investment income likely would exceed $100,000. The insurance company is writing a whole life policy so that they can invest the premiums and make more than what they pay out in claims. Whole life is a losing transaction on the balance. In my opinion, term is the way to go but only if you buy a long term and don’t let it lapse and keep it in force. A whole life policy will stay in force if you hit a snag, lose a job, get divorced, etc by drawing on the cash value. A term policy is non forgiving and will lapse if you stop the bank draft or your bank doesn’t honor the draft. The other pitfall to term life is your health. If you buy term young and healthy, you can buy it cheap but if you develop a health issue and let one expire or lapse, you can’t replace it and wasted all your paid premium whereas a whole life policy might have been better. I once sold a sort term term policy to a smoker client that chose short term in the process of quitting smoking. He bought short term so that he could reapply later as a non smoker for cheaper rate. During the term, he had a heart attack and failed to convert his term policy to a whole life and was uninsurable on any life insurance option and I beat myself up over not convincing him to buy a 20 year term. Term insurance is cheap but I think dangerous for young people because term won’t be there if you hit a life snag and drop it. I’ve also presented life insurance to older business insurance clients that didn’t buy it but killed suddenly in accidents later with no insurance. I have had two instances of this and both of their businesses folded like a pair of twos in a poker game and leaving big financial messes. Whole life isn’t a good buy but if you are young with minimal net worth, I’d recommend some level of whole life with a 20 year term on top. When your net worth exceeds the life insurance pay out, you no longer need life insurance. This is just my 40 year observation. Any type of life insurance is good if you die while it’s in force. If you are young with a family and broke, you need something. Worst thing you can do is get too wrapped up in analyzing term and whole life and buy nothing.
Us dollar is debt not real money.
Thanks BFF!
Term life insurancees have living benefits too. So, don’t just promote it for death benefit only.
As newly wed we got sold minnesota mutual policies that were supposed to grow a cash value and the premiums never go up. At age 64 they up rates from$300 a year to $3000 and claimed all our cash value went to service fees😢 when we ask for our cash value. Complete and utter scam and state insurance was no help. This was theft by minnesota mutual now own by Securian. Imagine if we had invested that.
She’s not a professional it’s not an investment as soon as she uses that word if she was licensed she would lose it. Whole life isn’t being pitched it’s IUL.
BEWARE of experts who only pitch products with volatility and risk of principal which life insurance isn’t
This is pretty terrible advice
This is blatantly wrong.
Great point!
The best investment in whole life is made when your child is born, as I did when my 45-year old son was born. Its annual return pays the premium.
For myself, I have enough assets to pay my own funeral expenses. I have no life insurance.
I sincerely appreciate the transparency of this video. Folks gotta stop allowing influencers on social media take advantage of them by buying whole life.
Thank you for posting this clearly, and in a way, the average person can understand.
It’s very annoying how these "content creators" and whole life insurance peddlers try to sell it like it’s a great investment for everyone. They are either knowingly scamming people or don’t even know understand the product that they’re selling.
Hey Vivian, YourRichBFF, FYI: it is a violation of NY Insurance Law to refer to Life Insurance as an "Investment". I’m a former (retired) NYS Prelicensing Life Insurance Education Teacher. I’ve never seen any Permanent (WL, UL, IUL, VUL, FPAL, etc) Life Insurance policy that outperforms Temporary (Term) Life Insurance policy plus a REAL investment sold by a Securities Licensed Representative. Life Insurance Licensed Representatives CANNOT legally sell investments. Love your postings even if they’re not technically perfect. Have you ever read "What’s Wrong With Your Life Insurance" by Norman Dacey?
Tell me you don’t understand how whole Life works without telling me that you don’t understand how whole Life works.
💯
So is term better for those with less $$$?
Life insurance is NOT an investment at all. Anyone licensed or registered would know this and never use that word with with life insurance. Makes me wonder about this "expert"
As a math teacher, a company by the name of PHP tried to get me to join! I did the math and it wasn’t mathing!!!! I abandoned ship and blocked them! It’s a bad investment for most people and the money these agents are making are coming from your monthly payments that aren’t being invested! It’s middle of the day robbery!
The illustration lacked one critical number — how much insurance?
@yourRichBFF I don’t think you really understand the difference other than cost. Whole life is not only for wealthy, the strategy more centers around protection of capital because of the cash value. Life Insurance is not an investment, it’s protection against risk and the cash accumulated in the Whole Life can be used as an asset to get access to capital for opportunity investments. Also stock market can crash at anytime, so even the proposal you made is flawed. So you balance your portfolio with risk management and cashflow investment
This is NOT the truth.
It could be $12k a year and still be worth it. People are always so concerned with the losses, but never focused on the gains. You’re supposed to be offsetting that small annual fee with your gains.
And what about TRANSFERABLE LI?
Thanks Vivian
Thank you very much for clarifying this!💗✌🏽
Thanks letting me know the difference.
She doesn’t know what she’s talking about. Term life is for 30 years. You will still need whole life once you surpass that. Whole life isn’t about just investing. It’s an addition to it. It would be prudent to get whole life eventually if you plan on living pass 60. You cant have term life at 80 years old. She’s clearly doesn’t understand the difference. Also whole life is only that expensive if you get a million dollar policy. I pay $75 a month for a $250k policy. I’m covered for my entire life unlike term life.
You FORGOT TO TELL FOLKS WHY!!!
Because to benefit from a Whole Life policy BEFORE you die, you have to have paid the ENTIRE cost of the policy!!!
The AVERAGE working stiff can’t afford that! It’s like the cost of purchasing a home, or more!!
If you grab a whole life policy really young, it can work in your favor. Gotta grab it while your health is great.
why does whole life insurance make sense if you have a lot of money to begin with? I thought whole life insurance is a scam no matter what.
This is kind of the story of late capitalism in general. Try to get people to buy all sorts of things they don’t need, thus creating markets and economic growth for the producers of these things, whether or not the consumers are actually benefited by consuming them.
There are so many trends that I am completely out of the loop about, what to buy, what gadgets are nice, what kind of clothes are in style, what the hottest restaurants are in my neighborhood. I just save my time and money and invest.
💯
Well, what she’s not explaining is term insurance policies overtime, the premium will almost triple. Not a fan of IULS. However, whole Life Insurance is a great strategy to reap the living benefits tax free and secure passing down a tax free benefit to your loved ones. With a properly structured whole life policy There is a level premium overtime your dividends will pay your premium. And if we do fall into a recession rate of return on your insurance policy will beat the market depending which provider you’re insured with
Whole Life is a good investment (savings vehicle with exponential growth potential) if you start early as opposed to waiting until you’re middle aged when it costs more. The stock market is not a better investment vehicle over time across the board but people do what is advertised/promoted the most. In this case, Wall Street or the stock market.
Hey what if you ask for the minimum death benefit ? Do you term is still the better route ?
Yes. I was told this by an agent. I took the test to become an agent and passed it only to be educated enough not to be scammed. Whole life structured for high cash value is a good investment if you’re putting in about 100k a year as this is wealth protection.
Price both Term & Whole Life, then… buy Term and invest the difference.
It’s been said for a long time, but never so well as here. Whole Life is for rich people, like politicians.
Life insurance helps families burry the dead and have some money to help recover from the loss.
What about annuities
Life insurance can create an immediate estate. It can be a great tool if you want to create generational wealth. It’s tricky, if you’re lower income you have to eat and pay bills do you buy a policy or pays for current necessities. This is how generations get wealthy. Have to start somewhere.
Sure
Thank youuuuu! Great advice
Appreciate the information!
Vivian is the whole life insurance , the insurance everyone is referring to as being your own bank?
Technically it’s a good investment, but only for the ones who can afford. Got it.
It is not exactly true. Don’t forget taxes. Sweet income tax and capital gains.ohhhh, and lovely 401k, 403, etc. Please don’t call people scammers. The stock market is not for everyone either… term is a huge waste of money. Every investment requires right structure and purpose. Term insurance gets really expensive when people get into thier 50s and 60s this is why they drop insurance when they need it most. Guys, don’t forget, youtube is the entertainment not a professional advice.
all insurance is a scam
you are wise, Vivian. Thanks n I like your dress 👗