Why Is Term Insurance Better Than Whole Life Insurance?
Why Is Term Insurance Better Than Whole Life Insurance?
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The county pay for it
Tex deduction I think another benefit of whole life insurance
The guy said if your cash value is 5,000 and your death benifit on the insurance is 15,000 they don’t pay you the 5,000 from your savings, they pay you the 15,000 $ death benifit"!!!! 👀👀👀👀OOOOOK AND HOW DAVE IS THAT A PROBLEM!???? MONEY IS MONEY: YOU BASICALLY ERANED 10,000$ EXTRA FROM THE WHOLE POLICY BRO! 😐😐 IM I MISSING SOMETHING HERE???🤔👀👀
What happens when the out live the policy?
For once, I agree with Dave Ramsey on this video.
Not comparing apples to apples. Term is completely different than permanent coverage. So I guess every GUL in a business buy/sell agreement is stupid?
I think investors should always put their cash to work, especially In 2025, we’ll start to see more market diversification. I’m hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2025
When I take out money from my bank account, they don’t charge me interested. So why are you paying interested on your money?😅
Hey, I was just told that I have a 20-year term. However, if my husband lives past the twenty years, I have lost my money and would have to start over. Is this true ?
Whole life insurance in Canada pays 6.35% in 2025 fot Serenia Life and Manulife. Maybe in US it’s less, like Dave mentioned
I heard we get cash value paid tax-free with death benefits if the cash value is not used! They don’t keep it.
You look like you are froybeeville
My entire family has always gone with IUL. Maybe I’m not getting it, but the example that Dave gave about being paid only the death benefit $15,000 and the insurance company taking the cash value/growth after years of contributions is only valid if you took a loan from your policy. The cash growth is collateral on the loan you take. I know this because my parents got the entirety of death benefit and cash value when my grandma passed. Never took a loan or anything.
He doesn’t mention that term policies almost never pay out. LESS than 1% of term policies ever pay a single penny, and even worse out of the already tiny % of ones that do payout most of those don’t pay the full amount.
The return is huge because you’re gambling.
Almost everyone who gets a term policy sadly ends up paying money for decades just to come out empty handed.
Why do people not realize that you can’t give someone 50 dollars a month for 20 years, and expect them to give you 500,000 in return. 4200% ROI’s only exist in gambling. When something is too good to be true it usually is.
Insurance companies are a business not a charity. No business can make a profit or even operate with that kind of business model if they regularly payout.
Before you come at me get this. I SELL TERM INSURANCE! I also sell whole life insurance. They both have their advantages, and disadvantages, but just know when you buy a term policy you are gambling with slightly worse odds than a slot machine at a casino (about 3.5% for slot machines and less than 1% for term insurance).
Buy term insurance and invest in a mutual fund along side your life insurance policy for the next 30 years at a 9% rate of return or higher, so when your term insurance expires, your retirement money is in the millions and you no longer have a need for life insurance because you are self insured now, see life insurance agents are one trick ponies and can only sell life insurance and can’t do investments for clients, so they convince a client that their whole life insurance is a good investment tool which that is completely wrong.
Yall do no listen to him, I am a Life Insurance Broker Whole life is 100 BETTER term is short for terminate you will lose everything you’ve put in, with whole it lasts your ENTIRE life, only 92% of ppl out live there term life then there in there 50-60s then try to get another term then it goes up too 200 a month. Stick to whole life then get a term while your in your 30s
Isn’t this theft?
Its called insurance, it only provide the best benefits when it met the requirements. If you want ROI then look for something called investment.
Ramsay makes no sense
SHE NEED TO GET HER ASS OFF DAT PHONE AND GO DO HER HOMEWORK !! TALKING BOUT SOME O OOOO🤦🏽♀️🥴 4:10
Thanks so much for explaining all of these, i never understood it before!
To anyone who has expensive insurances, ask for the cancellation form. Watch how your agent makes it hard and long for you to stop paying them money. Now imagine your beneficiary getting money from them. It is going to 100x harder
could you get a more guaranteed payout if you paid $20/month into a mutual fund or some investment that grows instead of gambling with life insurance.
I do agree with a lot of things said here as long as we consider that there are a lot of Life Insurance Companies out ther which are newer smallers companies are often in the business of selling LI through a call centre system which in my opinion is not good. But is all whole life insurance bad ? i dont think so. Especially if you are insured with a reputable and reliable financial institution. Yes, term LI is cheaper but after 10 or 20 years when your policy expires, it will become more expensive to get even another term life because as we age, the cost of insurance goes up. In my opinion getting a permanant LI (whole/participating) is a good idea especially if you are still young.
Had a relative who bought whole life with cash value. When his mom died, the insurance company only paid him the face amount and said that if he also wanted the cash value he would have to take them to court.
Would’ve cost him more than the cash value in his policy if he took the insurance company to court. In the end, he decided to just take the face amount.
All that extra money going into that policy wasted. Crooks I tell you.
Never discusses the living benefits (of a properly designed policy), never discusses the use of the cash value in the policy to put into revenue generating assets that generate $$ paying the premiums and interest when used properly. Easiest way to build income streams. Yes, you pay interest but typically less that what you would pay on a loan from the bank or a credit card. Learn to use the tool. It’s not an investment the way Dave describes it. This is really about the only thing I disagree with Dave on. There are too many examples of people using WL (myself included) that can readily debunk what Dave, et al say about WL.
This is just what I needed to hear! My broker is pushing me to go from ‘term’ to ‘permanent’.
Dave’s argument regarding paying interest on your own money is flawed. What if say, my sum assured was $100k I paid $20k in total as premiums and later took $10k loan and but I died shortly after? In that case, its essentially like this: my family pays back the $10,000 loan and gets $100,000 sum assured. Does that still sound like paying interest on your money?
You cannot strip out the protection element from the insurance. Even though a bank gives you 80% return but you died having invested $20k in total, your compensation will never reach $100k.
That extra return you get from the investments are not GUARANTEED. Besides, you know why the returns on cash value are so low than other investments? It’s for the safety of the policyholders and safe assets give you lower return.
Thanks for spelling it out for me. I’m literally sitting down to start value building for my grandkid, and was looking up whole life, and your name popped up on youtube. If i hadn’t watched these two videos, I woulda bought it, put it on auto pay and moved on…
Wat a shame a insurance agent took advantage of this lady that knew nothing about the different type of insurance policies
Credit cards are great as long as you pay off the full balance every month to avoid interest and collect good rewards.
I don’t disagree with your analysis but when my kids were young and I was a single bread winner I needed life insurance. I got lucky and got a fixed universal life policy from my large employer that was subsidized so the cost was minimal. Given the average age of our employees is under 30 and the policy was subsidized, the cost of insurance was comparable to term and paid via payroll deduction. I maxed out the cash value which earned 4% guaranteed interest for many years when you could not even get 1% risk free on CDs or T bills. I recently retired and have stopped making payments. The fixed rate is now 5% and the interest on the cash value is more than twice the cost of insurance. And yes the cash value and insurance BOTH are included in the death benefit.
My mom was so mad she paid into term life for years and it cancelled at age 70! Then she had to get more insurance…. Whole life!?!?!? What am I missing? It’s only a good idea if you don’t plan to live past 70????!!!!
3:48 caller had zero clue what dave was explaining, the fake "ohhhhhh. Ohhhh" is telling. She accepts the advice but doesnt
understand a lick about insurabce and doesnt want to sound dumb.
This guy doesnt know wtf hes talking about. Term is good for people under 60 above 60 you want whole life. Term will expire and then you will either be offered a shorter term at cost or year to year at a much higher rate. Whole life has an option where you can use a reduced paid up option where you can use you cash value as your death benefit and not pay on the policy anymore. You pay for life insurance for the protection. Most people wont save their money lets be honest. Life insurance helps a ton of people. Next hes gonna say we dont need car insurance either. Of course youre gonna pay more how tf would the companies make money?? This guy wants gas at cost and wants to pay wholesale prices at food markets LOL
With life insurance, a person would put down about $60 per month for 10 years and that would grow to $150,000.00 after that ten years is over. In other words, you would turn approximately $8,000.00 into $150,000.00 in ten years. Yes, there is a medical exam for it. Yes, you have to sign a will/trust. Yes, it is a long term investment. Yes! You can pay back a mortgage or your kid’s tuition with it.
On another note, stock and securities work the same way with a bank, but they fluctuate throughout time (assuming if, and , or when you withdraw your money at the age of 59 1/2, otherwise you get a 10% penalty tax from the IRS with a Roth IRA account is some sort of different demetion in space and time), life insurance does not fluctuate – it simply grows depending on how long you make payments for.❤
I think he is misrepresenting the “paid up” option. I could take a paid up option on a whole life policy and it simply reduces the death benefit and stops my monthly payments. I was quoted at $1,500 a year for a $200,000 whole life policy. If I took the paid up option at 65 I’d never make another monthly payment and my death benefit would drop to $160,000. So I’d still make $100,000 in profit after my $60,000 worth of payments spread across the next 40 years of my life.
Thank you Dave! What a great information!
Dave Ramsey is a mix of some good advice with a whole bunch of needless bloviating.
theres got to be something better for life insurance then term life insurance because about the time your are 58, the insurance companies jack the rates up so expensive its not worth it.
that was always my point, why get it when you gonna have to pay for a berried the person, the average to do this about 1,5000….. its better to cremate and keep the money and do some good for you and yourself
9 times out of 10, term insurance is not the best solution for long term protection. Most people think this — is delusional.
Dave Ramsey owns a MassMutual whole life policy. Public record smh..
And that’s why i got my life insurance license with Primerica, and will never ever work for another company. I will never sell that crap to decent person, working and taking care of his/her family future. Buy term and invest the difference is the best way to go. It’s not easy to deal with some people who are afraid or misunderstand my company’s philosophy, but I feel very proud of myself and go to bed very confident I helped a family which the right product.
I Thought Whole Life Insurance is better as Well
Thinking about my retirement scares me.I apologize to everyone who is retired and filing social security after putting in all those years of work just to lose everything to a problem you weren’t to blame for.it’s especially difficult for people who are retired.
INSURANCE COMPANIES are a SCAM
Why doesn’t Dave walk you through that the % of Term life insurance that pays out to a DB is 3% ? Why doesn’t he say that? I’m in insurance and I tell folks to get Return of Premium Term insurance. If you die, the DB pays out. If you are still alive, you get ALL OF YOUR PREMIUMS BACK in a check from the insurance company. ¯_(ツ)_/¯
Insurance is only a stop gap for the time you are building wealth. I have kids that are under 10. If I pass today, they will be fine. But for my retirement, and their education, I am still working on it.
My mom told me I should get whole life insurance cause I can take out a loan from the equity. Sounded stupid to me. I have servicemembers group life insurance that will pay out half a million for only $10 a month
Ramsey you are the best thanks for sharing the knowledge 😊