Are We WRONG About Whole Life Insurance? With Brock Fortner

[@AndAsset]

Great convo! Brock has a bright future in the industry.

[@BetterWealth]

Want a Life Insurance Policy? Go Here: bttr.ly/bw-yt-aa-clarity Want FREE Whole Life Insurance Education? Go Here: bttr.ly/yt-bw-vault

[@AndrewHansen-b8c]

Caleb, I’d love to discuss Car Purchases and Loan Arbitrage on the phone or via email.

[@cwall216]

Another great discussion!!

[@BetterWealth]

Thank you!

[@dailstancill720]

37:16 recapture interest, it's positioned as Pay yourself back because, if through a mutual company, eventually policy loan interest gets redistributed to policy owners by dividends. Technically, it's not a 1 to 1, pay back but more legit than paying higher interest than required because then you are just buying more paid up insurance(PUA), not getting interest back. Thx for addressing a misused concept.

[@sunghong2676]

Geez this guy uses my logic for whole life but i wholeheartedly agree.

[@dailstancill720]

18:05 CV is for insured to use as see fit

[@raymondjvaliente]

Awesome job Brock!

[@valuegiven]

Need Alden to run those value comparisons of a similar case with one policy weighing more with the added waver of premium vs. not having it or whatever the actual comparison was you guys were discussing. Would be a great case study to watch. I can see the value of why someone would want to pay for their car with the policy and “recapture interest” by simulating the payment as if it was that 8% amount and just accelerate the payoff sooner so you ultimately don’t pay more interest in the long run but I like how you’ve said it in the past Caleb where that is just a 2% benefit. A greater benefit would be to find a 15% asset and have the policy as the use cost of 6% thus your total gains be 9%. Much better than that 2%. Which is why as you’ve said in the past Caleb that it would be smarter to use the banks money all day long, for items we consume in life that is. Investing our skills and research in creating value in our economy that will give us 12-20% gains all day is a much better use of our time and money than arbitraging the interest rate on a product that depreciates in value or that doesn’t have any resale value at all like tax bills or vacations. Being the source of value (investing in ourselves) long term is much more valuable for the economy and family tree rather than finding another financial product as reason to consume our family wealth away. Value is either given or it is consumed. Value given pays dividends and gives life, value consumed steals wealth and destroys life long term. Sorry about the long comment but just so excited about the opportunity this community has on blessing the world around us.

[@pazsugarspice]

I like your interviews because you are acting as a debater verses a seller. It helps bring out a real conversation.

[@BetterWealth]

Our aim is to have good faith dialogues that challenge and help bring out the truth!

[@dontfighttheriptide4091]

Caleb, I was surprised to hear you not understanding the concept of recapturing interest, especially after the various references to Nelson Nash. Recapturing of interest is the result of setting in motion the uninterrupted compounding of growing assets… as opposed to breaking the compounding through directly spending cash. It’s the result of collateral lending for finance rather cash or personal debt. A good refresher is the figure on p41 of Becoming Your Own Banker - five methods of financing autos (of fill in the blank costs). The amount that method E (IBC) has accumulated after multiple cycles (Table 1 on page 45) is due to uninterrupted compounding. Every dollar you spend or invest is financed… the question becomes how will you finance?

[@edhcb9359]

Save the “recapturing of interest” mumbo jumbo for unsuspecting widows. 😂

[@dontfighttheriptide4091]

@@edhcb9359 okie doke, troll… could care less about selling it, but I sure as hell have benefitted from it. No market risk, no tax on that portion of accumulation. Plenty of widows have been left destitute by following the herd. If 95% of the population is hosed by the time they are at retirement age, just maybe we’ve all been lied to… and had that same propaganda defended by scoffing trolls.

[@JoeyLisano]

7:17 I think many people view insurance as a cost and almost a commodity, especially with how many types of insurance are required (a collateral loan requires property insurance, government requires health insurance). That viewpoint sees the whole life premium and gets sticker shock before the brain can logically weigh the benefits.

[@edhcb9359]

The real benefits are for the commissioned agents that sell it.

[@BradHarris-kv6et]

Thanks!

[@franklehane8843]

Correct me here, but the 'not having more money that you put in' idea confuses me, a seasoned agent. In my thinking (not necessarily the client's thinking), life insurance's nature provides an up front 'more money than you put in' simply by virtue of the tax-free death benefit which is 'more money than you put in', just not liquid and available.

[@negrilsand]

(im just learning BTW) so to take a stab at the rationale of paying yourself back : (regarding the interest) when I pay back a bank loan ..the interest paid in NO way benefits me if I never bank with them again (via services, loans, blue sky benevolent community etc) however when I pay back the insurance company loan at whatever interest rate (within reason of course) they take that money and put it back into the company (partially my company so to speak) allowing for more loans to be given to others who pay their loans back (hopefully) , yielding more investments by the company (my insurance company so to speak) and allowing for dividends (consistantly) to be paid TO ME .. (thought of as recapturing that interest paid) by a HEALTHY cash robust system that directly trickles UP to me ..

[@jamesiscool3245]

It is a new heuristic to me that net worth should equal whole life death benefit.

[@BradHarris-kv6et]

My dad just passed and had a lot of whole life. Our family didn’t get the cash value. Why?

[@AndrewHansen-b8c]

Cash Value is just the expression of your Equity in the asset. The actual asset purchased is the Death Benefit. Upon death you receive the asset minus an outstanding loan. It’s the exact same as selling a home. You get the value of the asset minus an outstanding loan/ mtg. Cash Value is NOT a separate account. Premium purchases Death Benefit. As you put money into the contract, the insurance company gives you a line of credit equal to your equity, they use the term cash value.

[@BradHarris-kv6et]

Wow. When you put it that way I can see he was definitely overpaying for the death benefit he had.

[@BetterWealth]

I’m very sorry to hear for your loss.

[@BetterWealth]

So many people unfortunately are sold poorly designed policies

[@wpshelton]

@@BradHarris-kv6et insurance companies exist to make a profit.. whole life is an over complicated product that is not very good at anything that it is sold to be. It is just.. okay at best. Term life is simple, you pay for a dollar figure for a set period of time and with a few exceptions to protect themselves from fraud (typically things such as suicide, or misinformation when signing up, ect.). Whole life is typically 20x the cost of term.. though there will always be a cash value.. term should be purchased for a period of time until you can self insure. And the difference of term and whole life should be invested so that you will be covered the remainder of your life.of course some math needs to be run for your specific situation.

[@AnthonyBove]

Here’s Dave Ramsey arguing against term in favor of whole life… but with cars 🫠 kzbin.infobyue-Nf-gV8?si=A005iv-X5j6gLWiP

[@AndrewHansen-b8c]

Dave is all wet on this issue. He argues you lose your Cash Value when you die, which is misleading. Then argues for a strategy where you give up your Death Benefit when you’re most likely to need it.

[@wpshelton]

I’m still convinced whole life over term life is more money paid out for insurance /flexibility of services and less returned to beneficiaries/policy owner.. when compared to term life plus a Roth IRA/roth 401k ect.. and seems to be most often pedaled to the poor and uneducated. Need to run actual numbers for a real customer from leading whole life and term life policies for both death benefit and currently accessible cash for say 65 years. For the term life examples run them with the Roth 401k/ Roth IRA/ Brokerage accounts and have it invested in a common s&p500 mutual fund. Then consumers will see just how much more is getting paid for these so called extra benefits that whole life offers. With whole life either the cash value or the face value is paid out but in no cases both are paid out.

[@UltimateWealthPros]

Well you clearly dont understand it, how it works, or the point of why someone would do it because if ya did you wouldn’t have made the silly comment that ya did! Lol instead of making assumptions regarding things you clearly don’t understand maybe start with asking questions next time to try to actually understand the concept before assuming you already know and it will help to avoid embarrassing comments like this.

[@UltimateWealthPros]

Also this strategy is used way more by wealthy people than poor people and when set up and used properly your death benefit will always increase by more than your cash value every single year, also if you understand how this whole concept worked you would understand than the whole point of this video/strategy is the fact that this is an and asset meaning you literally don’t have to choose between this and any of the things you listed off you can easily do both lol if you understood the concept you would know that already though because by year 3 to 5 you have more available cash value than you have paid in so there is no expense cost compared to term insurance that is pure cost this strategy allows you to minimize your lost opportunity cost control your cost of capital, provides a guaranteed volatility buffer in retirement that protects your market investment and allows your portfolio to reach further last longer, provides creditor protection, living benefits, and the ability to access your cash at any time for any reason tax free, money grows tax free, when you compare to traditional market investments to properly set up and used whole life you would need to be earning between 8-10 percent every single year for the rest of your life just to keep pace with whole life at 4.5% when you factor in taxes, cost of term, inflation, management fees, etc and it gets even worse if you factor in sequence of returns in retirement without a volatility buffer. And I haven’t even touched on death benefit yet that continues to grow every single year

[@AndrewHansen-b8c]

The brokerage accounts listed are all investment and the money in those accounts are at risk. Maybe you make more than 6% maybe you lose it. Maybe it gets eaten up by tax and fees. Whole Life is guaranteed and tax advantaged. Also, buy term and invest the rest assumes you will make enough in the investment portfolio that you self insure in your later years when your uninsurable or its cost prohibitive. It’s counterproductive to lose your death benefit at a time your most likely to need it.

[@wpshelton]

@ NO investment is guaranteed.. and at regular old 10% return for 30 years at $100 per month you would return approximately 2.25 times the dollar value over a 6% return.. when whole life on average costs 20x for the same death benefit you will be investing a much larger dollar value.. on top of typically adding multiple years of compounding interest (which are the highest returning years!!! Because they are most often front loaded fees ) so now just the basic $100 per month over say 27 years at 6% interest is only about 80k and the self invested in a Roth IRA/401k is roughly 225k..

[@wpshelton]

And if you factor in the 20x cost for whole life the results are far more dramatic!!