Is Whole Life Insurance Ever A Good Idea?

Is There Ever A Good Situation For Whole Life Insurance?
Don’t waste money on whole life insurance. Get a term life policy today: bit.ly/2CmkuN1
Visit the Dave Ramsey store today for resources to help you take control of your money! goo.gl/gEv6Tj
Ramsey Solutions KZbin Channels (Subscribe Now!)
• The Dave Ramsey Show (Highlights): www.youtube.co...
• The Dave Ramsey Show (Live): www.youtube.co...
• The Rachel Cruze Show: www.youtube.co...
• The Ken Coleman Show: www.youtube.co...
• Christy Wright: www.youtube.co...
• Anthony ONeal: www.youtube.co...
• EntreLeadership: www.youtube.co...
Did you miss the latest Ramsey Show episode? Don’t worry-we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: www.youtube.co...
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
www.youtube.co...
• The Ramsey Show (Full Episodes): www.youtube.co...
• The Dr. John Delony Show: www.youtube.co...
• The Rachel Cruze Show: www.youtube.co...
• Anthony ONeal: www.youtube.co...
• The Ken Coleman Show: www.youtube.co...
• The Christy Wright Show: www.youtube.co...
• EntreLeadership: www.youtube.co...

[@JWalton314]

I just read a book that said Whole Life was good in certain cases. So I dove a bit deeper on the subject and the guy who wrote the book became wealthy by selling Whole Life insurance lol.

[@anthonyc362]

Johnathan Walton Doug Andrew?

[@JWalton314]

@@anthonyc362 Killing Sacred Cows by Garrett Gunderson. Overall I thought it was a good book but it had a lot of differences with Dave's teachings.

[@setdwoo]

Dave got rich selling insurance... that's what his ELP program is lol

[@JWalton314]

@@setdwoo As long as it wasn't Whole Life lol but I thought he got rich through real estate.

[@setdwoo]

@@JWalton314 hr hit directly rich through real estate. He himself has a provider program called ELP where these term life agents pay substantial fees to be in his club then all the sheep buy from his "certified" agents. Just remember when sone someone is fanatical about something they are regularly trying to seperate you from your money for "advise". I think Dave has a phenomenal method to get broke people out of debt. He will never make anyone wealthy. Most id his followers follow his advise for a year or two then fall off. Then they repeat the financial mishaps all over again.

[@stevee8318]

As someone who works in the insurance industry, buying insurance as an investment is just such a stupid idea.

[@briana_bee]

Steve E ... It's an investment towards a family's future, such as ones husband, wife, kids, or parents whom may depend on the person.

[@stevee8318]

@@briana_bee You are using "investment" in the general sense, not the specific sense of this discussion, i.e. a way to make your money grow. Insurance exists to protect you and your family against a catastrophic loss, not to make you more wealthy in the future.

[@du-gu2mm]

sir what can you say about the insurance + invenstment thingy? agent friend of mine is so persistent he wants me to get their life insurance+investment product.

[@RealLifeMoney]

Yes basically! Why get an investment from an insurance company? We should get investments from investment companies cause that makes more sense 😝

[@ariefraiser140]

Steve E...100% agree.

[@richp5064]

What Dave is talking about is a traditional WL policy. Not a high cash value policy set up for the infinite banking concept. Dave needs to read the book become your own banker by Nelson Nash. Btw I had cash value year one about 90% of it, I break even year 4. I am going to take a line from Dave....Dave dont be stupid and go learn about what you really dont understand. Ever wonder why so many rich and companies have assets in WL polices?

[@mrstinky2421]

He is ignoring the return on Death benefit. Decent product for high earner looking for legacy planning. Partner it with a trust its a good plan but only for people subject to estate taxes.

[@vettehogan2584]

An insurance agent LIED?? No way!!!!

[@casandrathomas2573]

🤣

[@trevorgilbert524]

Whole life isn’t made to be an investment people. It was made to take care of final expenses. You know the expenses people leave behind to their loved ones? Term doesn’t usually work for this tho because it cancels at age 80 and you have to be very healthy to even qualify for term.

[@astroman30]

You don't need a trash value policy for final expenses.

[@kenkrahl9005]

So if someone can’t qualify for Term due to age or health, they should just proceed to be uninsured. If people are 70 or over, they should become uninsured at 80. 🙄 People should take financial advice from someone with a LICENSE (Dave hasn’t ever had any kind of financial license), and someone WITHOUT a paid endorsement by a Term Insurance company.

[@astroman30]

The only time a person needs life insurance is if someone else (children, spouse) is dependent on his/her income. Otherwise, it's not needed. The premiums on a WL policy is around $300 to $400 monthly. I would rather SAVE my money for burial costs rather than spend it on a trash value policy.

[@MultiverseAsheville]

@@astroman30 Do you know how many families over 70 depend on their spouse’s income? How many seniors pass away and leave their children a house with a mortgage bill they can’t even float long enough to sell the home? Whole Life isn’t just for “final expenses.” It’s a way to purchase money there may not be time left for them to save, to protect the larger investments- such as equity in their home- their families would otherwise lose.

[@michaelross8036]

Agree, when term ends .....IT ENDS, you get nothing. Yes it does it's job as a low cost policy.

[@andrewilliamson4926]

You get insurance to protect your ability to earn income. Old people should be done earning income, and even if working, protecting those cash flows shouldn't be an issue. Life insurance for 70+ year olds is cuckoo.

[@mikechet49]

Dave is absolutely right on this. Cash value life insurance is a scam. Buy term.

[@slyfoxx2973]

Come on Dave, tell us how you REALLY feel.

[@LyonsArcade]

Yup I really hate when he holds back

[@a.f.c6601]

😂😂😂

[@MightyGreenLantern17]

It's worth noting that one of Dave Ramsey's sponsors is Zander insurance, which is a term only company

[@astroman30]

Does that mean he's wrong?

[@MightyGreenLantern17]

@@astroman30 Not saying he's wrong, but he has a bias

[@astroman30]

@@MightyGreenLantern17 I have a bias against buying time shares because it's a rip off and would endorse any company that offers to get out of the contract. Doesn't mean I'm wrong.

[@MightyGreenLantern17]

@@astroman30 Life insurance is not a one size fits all dynamic, so it's problematic for anybody to say you should never get it. That's with anything in life by the way

[@trajanogden9388]

@@MightyGreenLantern17 a financial calculator does not have a bias. As Ramsey said in the video.... do the math! SMH

[@hannahstephenson7572]

i just finished my first year teaching and i’m 23. they sent through my school system a free consultation with financial people to help with retirement. guess what they almost sold me.

[@alexcollins9577]

Most whole life sucks. There are a few select highly reputable financial companies that sell whole life policies in which the death benefit increases as the cash value grows, at a guaranteed rate of return that will never go down. Is it a way to potentially make tons of money in the market? No. Is it a conservative way to build wealth tax free that is also distributed tax free, while the death benefit grows if provided by the right company? Absolutely. Term is so cheap because it is designed by the insurance companies to not pay claims. 3% of term policies ever pay a death benefit.

[@theofficialgaro]

Thank you for sharing this information. I recently was reached by a sales person who identify himself as a financial consultor. As soon as I started asking questions about the numbers outside of the memorized script I saw he started to scramble. He started to deviate my attention back to his script and I stoped answering his calls because he was avoiding to provide clarification on my questions about the numbers. Later I found some valuable content like yours and confirmed about this scam happening. Now they sell themselves as "Financial Advisors". Please keep doing this type of content to help people not to get in this scam.

[@4RingsJamz]

I sell term if your in the market for insurance and investments I’m licensed to do both

[@paulpetrovich8779]

Not disputing Dave&anyone else. Correct me if I am wrong, at the end of a term life policy, there will be zero money accrued. It is true whole life has high fees initially, but I do not think anyone will insure you for free.

[@markbazikian]

at the end of a term policy, you have the option to continue renewing your policy year after year normally up to age 95 guaranteed without need for underwriting approval as long as you are willing to pay the increased premiums. The annualized premium continues increasing year after year until you can no longer afford the premium and the policy ends up lapsing. The insurance company ends up taking in all that money in premium and never paying out a claim because the policy lapses due to non-payment. You'd either have to apply for a new term policy or a small final expense policy (depending on your age and your health at the time the initial term length comes to an end) if you want to keep coverage, the premium will increase regardless at this time because you've gotten older and the risk of you passing away has increased. There is no cash value accumulation with a term policy but imo you shouldn't be worrying about paying more in premium to the insurance company for cash value.

[@tonyfeller9676]

Dave has covered it elsewhere and i guess there wasn't time here, but if you follow what he teaches you will not need life insurance after a certain point. by the time most people are in their 60's, 50's for some, if someone has children they are grown and gone and supporting themselves, your home is paid for, you have no debt, and have at least several hundred thousand dollars in assets and savings. you become self insured. so when you die, as long as your will is written and legally filed, etc... your spouse/partner has a paid for home, a lot of cash, money coming in themselves from pension, social security, whatever, and no debt to pay off. they will be on a budget and living within their means so managing monthly expenses will be easy. there simply is not a need for life insurance of any kind. i know several people who don't have cars, and guess what, they don't have car insurance. if you are financially self insured and still want life insurance, there's nothing wrong with having a term policy, and the extra money will certainly come in handy when you die, but it's not needed like it is when you're young and have dependents. you are right there will be no money accrued through life insurance, but there will be a lot of money accrued if you follow what Dave teaches, especially when you are paying so much less for life insurance having term instead of whole. remember, insurance is not designed to make you money, it is designed to protect the things that make you money. follow what Dave teaches, including using insurance as it is meant to be used, and you will become self insured

[@amethyst4444]

Tony Feller BINGO!!!! 🎯

[@jdm4998]

@@tonyfeller9676 you have the best understanding of this of all the comments I've read. I just need to read it a few times to get it. Next is the debate of mutual funds vs index funds. Mutual funds with all its fees.

[@gabbybyfaith]

@@tonyfeller9676what about disability insurance? Someone is trying to sell me that, but I’m honestly scared to pay for insurance that Isn’t needed.

[@ej_l2525]

I will not put my money in the whole life insurance. I'll rather invest it into stocks and real estates and probably a health insurance.

[@astroman30]

@@dakotadak100 With dependents it sounds like a great plan.

[@kimmyj9617]

What if it's the only policy you can get due to health issues that will not be going away?

[@astroman30]

You'd still be better off to put your money in a bank SA than a WL. At least you won't have to borrow against it. Just get enough to cover funeral expenses.

[@imveryhungry112]

I have some term life insurance in case something really bad happens, but every month I put a little bit of money into the S&P month after month no matter what. I think thats the simplest path.

[@alexbarrientos3391]

I have term also. How do you invest in S&P 500?

[@hilariohernandez]

Warren Buffet would agree with you.

[@zino3486]

Hi Dave, how come the IRS limits how much money you can put into a life insurance contract? 🤔

[@Je.rone_]

*if one is wealthy without dependents do they need life insurance it seems at that point frivolous*

[@LyonsArcade]

I would say no, and I'm pretty sure Dave has said many times no you don't really need it. It'll be hard to buy when you're older anyways.... Dave has also mentioned that he owns a Term policy because it's inexpensive and it makes his wife happy, although they have a fortune in the bank.

[@adamsaldana5462]

No. If you dont support anyone currently.

[@tanikainsight8271]

No it’s only if ppl would be dependent on you for income if you die. If you have wealth leave them that

[@stevee8318]

If you have no dependents you don't need any type of life insurance.

[@ThePeterDislikeShow]

No, but you might want to consider additional liability insurance in that case.

[@grillmeister7]

I had a preexisting condition that precluded me from buying term insurance but I needed coverage.

[@phaldaz]

Hold up... looool what did he call him at 0:39?!?!

[@Jack4nd1]

So it sounds to me that he doesn’t recommend a whole life policy. Did anyone else gather that?

[@xavierjamal8755]

If you’re buying it as an investment tool of course its not fully worth it. But most poor/ middle class people don’t buy life insurance for that type of investment. I swear dave is in his own world lol. Everyone is not gonna be financially free. Some people just need something to look out for their family

[@astroman30]

That's why I bought term insurance at a fraction of the price compared to trash value insurance.

[@ContessaVanessa]

Lmho @ "I hope I was clear" at the end of the video 😂!!! No Dave, tell us how you really feel 😂😂 But all jokes aside, you're absolutely right! It took me a long time to learn that, but I'm so happy I finally see the light!

[@raudel5033]

Dave you took up this subject without a caller because truly i think a caller would change scenarios and therefore Dave’s assertion would be on shaky ground.

[@eatpigsnot]

you can search this subject on KZbin. several videos with callers come up

[@raudel5033]

CARDINAL RULE: spend less than what you earn. Follow this rule and you will mostly always be alright. Not every single decision/purchase has to be an investment. I agree with with Ramsey most of the time but i disagree with some assertions made here. This is a topic that contains many moving parts and its different for different folks depending on many factors including age and health....

[@j.dowland5405]

But if you insure yourself from a young age, you avoid the "age and health" factor.

[@scubasteve7816]

It’s not 20X more expensive. You didn’t know mathematics in college? Term Insurance is almost guaranteed NEGATIVE 100%. Dave is giving cookie cutter advice. I sell tons of Term Insurance. Cash value is NOT 0 0 0 in the first 3 years. NOT TRUE.

[@GerardoGarcia-no2wr]

The demographic that buys Whole Life doesn't know about investing...they are procrastinators and have bad spending habits and no retirement planning. They just want a band aid if something happens to avoid a car wash or Go Fund Me. I'm one of the slime balls that has delivered checks to help a family in need when something unexpected has happend.

[@philhashey9651]

Buy term and invest the difference!

[@setdwoo]

There are cases for whole life. What happens when you are non longer healthy enough to qualify for term life? Oops you can no longer qualify for any life insurance. It's insurance not an investment. Why are you comparing it as an investment? That is twisting in itself. It does not cost 20 times the amount. The cash value isnt 0 for three years that is a lie dave. The face value death benefit grows with the cash value on most whole life and is always greater than the cash surrender value so they aren't "keeping" your investment so that's a lie. You called the agent a liar and yet you are lying as well. Just lost tons of respect for you dave. Unsubscribed

[@dakotadak100]

Dave's videos on whole life are filled with so much misinformation, interns know more about whole life products than Dave Ramsey. It's partial truth or complete poop, all of what he says about it, I feel he must have a secondary motivation.

[@mitchellbowker4074]

Really? How can you explain my "investment" of WL for 4 years, at 225 a month, now i have 1500 cash value? I would have been better of watching it lose 40% during the Corona Crash. Its a scam.

[@setdwoo]

@@mitchellbowker4074 your comment has nothing to do with what I said. You didnt even read it clearly. Dave lied plain and simple.

[@andrewdutton3831]

You said, "What happens when you are no longer healthy enough to qualify for term life? Oops, you can no longer qualify for any life insurance." Why would you need life insurance after about age 55/60?

[@setdwoo]

@@andrewdutton3831 50+ age demographic carry on average more than 100k in debt in the USA. 70+ carry 40k or more on average. The simple fact of not leaving your surviving spouse with an unsustainable debt to income ratio.

[@fireeye33]

No dave, whole life insurance is not suitable for 99% of your audience who are mostly broke and living paycheck to paycheck. Whole life is not even a form of investment, it’s simply a savings account with death benefit. Where you can use the cash value for opportunity. And for those who has ability to save more, they know their money will grow better than letting it sit in regular savings account with 0.1% of growth. Off course you wont see growth in the 1st 3 years bc the insurance company has to ensure it can provide this huge amount of death benefit, but you should tell the store better, it will generate better rate of return in the long run.....whole life also is not impacted by the market crash, it is protected from the gov. I think you are not telling the story correctly.

[@LyonsArcade]

LOL Insurance Agent Alert

[@hondah35]

@@LyonsArcade You could try refuting some of his points......or not.

[@fireeye33]

Joe's Classic Video Games nope I am not an agent, you can contact my agent her name is Kim Butler, she wrote a book called “busting financial planning lies” you should read her book btw. Iam just an educated policy owner. I insured my husband and have purchased a rental property using my whole life account. People blame whole life bc of their own mistake, they canceled an account before it reached maturity, off course you aint gonna get the most of cash value out of it. Then they say: whole life is a scam. Or major events happen in their life where they can’t afford the premium before it is mature and instead of realizing it is on them, the blamed the bank.

[@LyonsArcade]

@@hondah35 Dave did it for me :)

[@fireeye33]

Joe's Classic Video Games that’s bc you’re so full of debt. If I follow dave’s suggestion not to use credit card, dang I will lose $1500/yr in cash reward. Lemme tell ya, credit card bank don’t like customer like myself, bc I never once pay a credit card interest, instead the bank rewards me to use their credit cards, I collect my cash reward in one year I get thousand of $ that I use to travel to diff countries....or Christmas shopping...but again people like me is rare, 90% of credit card holders in America are people like you, people who are getting rip off every month from overspending and paying card interest. So yes they hate me but they get to make more money from people like you.

[@InvestingEducation]

I didnt get life insurance. When I die, my family will inherit my stocks portfolio which is plenty enough

[@ariefraiser140]

Not only that but if your kids are stil3 minors if you die they get social security survivor's benefits. You and your family are better off buying long term care insurance. Taking care of a person with a terminal illness towards the end of their life is really what breaks people.

[@twincherry4958]

@@ariefraiser140 ahhhh

[@InvestingEducation]

@@ariefraiser140 Yea severe disability is more worrying

[@kauigirl808]

How about if you get cancer...and you need money for treatment...

[@InvestingEducation]

@@kauigirl808 critical illness insurance for these kind of diseases is impt

[@paulleonardo4906]

I just canceled my whole life policies. After watching your videos I started examining the policies, you were right, they're just a horrible product.

[@4RingsJamz]

I sell term insurance if you need lmk i can create a quote for you

[@Requiescat_in_pace]

My neighbor Mr. Fitzpatrick bought a 750k whole life policy. He is a 600 pound man and is thankful for this policy.

[@Gevans5472]

Bet that wasn’t cheap

[@Requiescat_in_pace]

@@Gevans5472 It was extremely expensive.

[@andrewdutton3831]

His whole life insurance sales rep is also thankful.

[@coastallivingmississippi188]

Was he on the TLC show if he wasn’t I don’t believe you.

[@harrisonwintergreen1147]

No Saved you 7 minutes

[@krecikowi]

You should say it in Dave voice. Like this : No, it is STUPID to have whole life insurance. STUUUPID.

[@LyonsArcade]

There's one reason to have Whole Life Insurance : If you already have it, and you find out you're dying and can't get other insurance.

[@Gevans5472]

Funny and true

[@andrewdutton3831]

DING!!!! This is the ONLY case where I can see whole life as something worthwhile. And if you are worried about that, buy term early in life and get the longest term possible.

[@xilencered7788]

I already got tricked into it. I'm already in at a low price cuz I was young, I have a kid now . Past 2 years jobs have had their dangers sooo I never cancelled it 😂 so Yea. Only good if you already have it

[@Rodriguez88m]

No one is 100% right about everything. I’m still learning but this is the one thing that sticks out. I’m not saying you’re wrong but I’ve heard a lot of different views.

[@astroman30]

Such as?

[@garrettstevensen2467]

Probably, one of the best videos I've ever seen on Dave Ramsey. This, and the video showing -4% rate of return on social insecurity.

[@LyonsArcade]

And people who keep a mortgage for 'the tax writeoff' LOL

[@I_like_turtles_67]

@@LyonsArcade Dude this one kills me too. SMDH

[@2bmikey]

The like button just doesn’t cut it. There needs to be a love button. LOL

[@jhat74]

Haha…. The Insurance agent was a 🤥 liar. Love your passion Dave, but the more you talk about life insurance, the more ignorant you sound. By the way, estate planning attorneys recommend life insurance and don’t sell it. The reasons, tax planning, blended family issues, highly illiquid estates, estate equalization.

[@astroman30]

I have an estate and none of which is through a whole life policy. What a stupid statement to make to blindly purchase insurance for estate needs. There is no federal estate tax and most states don't have an estate tax. The ones that do exempt direct family members and start the taxing at $5 million.

[@jenniferannfox2316]

what about cancer insurance and long term care insurance? I remember one of my previous employers pushed AFLAC like crazy and it was so expensive.

[@alvinohata4223]

Dave, I agree with you a 100%. Before I got into real estate, I sold term life insurance from a company whose founder was a former college football coach, initials ALW.

[@paty.2130]

Really? you took the guy who was in bankruptcy for advice?

[@crsbladee6065]

Is term life insurance good then?

[@fmaz1952]

If you need life insurance, that's the way to go

[@user-lo3dl1ew7o]

Dave, I just started my financial advisor career. I got into it because I saw my family struggle with three deaths in the family with no insurance totalling a little above 60k in expense... I'm trying to learn as much as I can to help people the RIGHT way. any further advise or if anyone in the comments is in a similar situation I would love to connect!

[@thewongmindset451]

Lol gotta watch out for those "bonehead liars"

[@michaelweyenberg6238]

Whole life is for people with money and they want to keep the governments hands off it.

[@astroman30]

You can put it in mutual funds and draw it out at 59 and a half TAX FREE. WL is a rip off. When the person dies, the insurance company keeps the cash value and only pays the DB. Plus, the rate of return, after high fees and commissions, is about 1%. AND, you have to "borrow" against your own money to get any out. It is truly the payday lender of the middle class and old people.

[@astroman30]

@Mike Roagression You're an idiot salesman. You are on a Dave Ramsey video channel. You think you make more money than he? Stop ripping off people and get some morality in your life. You probably sell annuities and cancer insurance, too. Your job is a dime a dozen.

[@betterbuilt1114]

I believe it depends on your situation. If you get yourself to a point where you have no debt and good passive income with a good savings. I would ditch all life insurance policies including term.

[@astroman30]

Even better, only buy term which is waaayyyy cheaper than whole life and ditch it when you become self insured.

[@lennoxmutterick6434]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Kevin.siffermann]

Dave is a liar. Agents DO NOT receive 100% of the commission for the first 3 years of the policy. Dave from 1 Christian to another, STOP LYING. So many lies Dave.

[@markbazikian]

first year of the policy and that's only if the client keeps the policy for the full 12 months or the commission gets charged back by the carrier

[@astroman30]

WL is a scam. You salesmen love it because it's high commissions. Stop ripping people off.

[@wbskas]

You can use a Whole Life Ryder with Long Term Care if you can't self-fund. Especially if you buy later in life. Fact.

[@elgatodeoro05]

Here is the problem. No body but NO body ever saves the difference from the term policy to invest. This insurance is not for the average Joe, so please always be clear. Your products are for the poor class just like your advice about credit. SO who is the deceiver then???

[@Jem544]

Where do banks put a lot of their cash reserves?

[@casandrabarron3378]

The Banks Use The Rule Of 72

[@amandathompson9347]

Dave Ramsey doesn't know what he is talking about when it comes to life insurance. Term insurance was never meant to be kept for decades. As you get into your 50s term becomes very expensive.people drop term policies right when they need it. Crazy. Whole life does what it is supposed to do, provide a tax free death benefit.This is why wealthy families use WL insurance to pass on n estate.

[@nayochallenger268]

Not all policies wait before they begin to grow....whole life is not about having an investment it's about having INSURANCE ..people fail to admit that after term life runs out and you don't have health or money to renew especially for people in high risk communities who are at a higher risk for many reasons of being sick and not qualifying are screwed.....I don't think there is one answer to this

[@chrisstaub5880]

Sure there is. Have money saved throughout your life so that you don't need insurance by the time term becomes expensive.

[@tg8603]

There is an answer because people can do math. The extra money wasted in whole life premiums could be put in a simple index fund and grow your wealth substantially over longer time horizons. Whole life is designed for long time horizons, and it sucks as an investment compared to other options people readily have available.

[@mbyrd6713]

Thanks for addressing my question. I just bought two 30-year- term life policies for my kids who are 18 and 20. I’ve been listening to Dave and the idea that in 30 years, they should have enough money save does make sense. However. I was 27 when I found out that I had cancer and I have not been able to go back to work. Thankfully, I already had a whole life policy that won’t expire. If I had term life, I would’ve been stuck at the end of the term and it would be almost impossible to get insurance then. The term life plans I purchased were a few dollars more than the whole life plans I was offered. I’m worried that if something happens to one of my children and they become disabled, what will be there when the term ends? I’m almost at the place where I’m thinking I should get one of each 🤦🏽‍♀️

[@joy2come119]

@@mbyrd6713 i personally don't think its a bad idea to have both but many will say take the difference you would pay in whole for your kids and invest it. But your situation is different I know you're happy you got that whole life with your diagnosis.

[@josephcurtis691]

@@chrisstaub5880 This is ideal but most people don't end up achieving it.

[@firecraig]

The only people??? Never mind the wealthy, the banks, the business owners. You just flat out lie Dave.

[@johngerring2505]

Berkshire Hathaway as well as Warren Buffet personally buy several whole life insurance products every year.

[@gustavoreyes80]

Of course it is considered Asset Class, maybe this guy had a bad experience, but whole life is an amazing product.

[@realnapster1522]

Because he is mega rich. He has money to spare on buying and maintaining those expensive policies. You can’t compare him to average Joe who doesn’t have any saving.

[@420terrence]

You’re not a millionaire with plenty of assets

[@mikechet49]

Probably a tax strategy for him. I had a rich uncle (not as rich as Buffet) do the same thing. For middle class people, cash value life insurance sucks.

[@INFINITI071]

Mr. Dave YOU ARE WRONG 100% guarantee. You feel some type of way for canceling your policy and now knowing your buddys are building up some good $$ lol !

[@TheLjdevlin86]

The fruit jar had me crying

[@jace8490]

This is the one thing he’s wrong about. If you buy from a mutual company with a long history of dividends it’s better than term

[@debrastruck8440]

So yes we bought a whole life insurance policy someone convinced us it was a great idea and he works for Mass Mutual can we cancel it..?I know if I called him he will talk me out of it

[@astroman30]

Cancel that garbage and never speak to him again.

[@donnavaughn9409]

My credit union just sent me an offer to get up to $10,000 for whole life for my birthday month, anyways, I have my state retirement insurance only 9,000 and another police for 3,000 with another co, however, in paying for term life of 3,000 it's about 40 a month so that's over 500 a year and I've already paid myself for the 3,000, but it's much more for a bigger policy, I don't believe I can buried with just $12,000, it seems like I'd need more for burial and all of it, the plot and box to get buried in, and a marker. I am so fearful to go to any mortuary and ask them if I died in a year what the most thrifty price would be

[@astroman30]

Just save your money to pay for the rest.

[@sunnydays4966]

Sorry I against all life insurance have die to collect how bad of gamble.

[@Stylevloggers215]

Okay, but if you get term, and u don’t die in that term, that money is pocketed, right?

[@astroman30]

It's a risk management purchase. If I buy homeowner's insurance and never used it, was it a bad purchase? No.

[@GodISLuV4EveR]

What if you have cancer and can’t get another policy?

[@eatpigsnot]

keep it. it's better than nothing. barely.

[@chrisstaub5880]

If you don't have any dependents, you probably don't need any life insurance at all.

[@MgGlobal]

Whole life is not an investment. Quit calling it an investment. You forgot to mention the death benefit grow as you get older. You are the worst. I wish I could go to your show and educate you man.

[@astroman30]

Liar.....you only get the face value of the DB in most polices. Stop lying.

[@MgGlobal]

You do realize the Death benefit grows as you get older. Example Let’s say you have 50K in cash value and 150K in death benefit. The most the company will give you in general is 150K You can take out the 50K in cash value use them spend them and all. If you pass your family gets 100K In total you got 150K. Please educate yourself.

[@astroman30]

@@MgGlobal "You can take out the 50K in cash value use them spend them and all. If you pass your family gets 100K. In total you got 150K." Hence, 200 (DB + CV) - 50 (CV) = 150. Which means, THE INSURANCE COMPANY KEEPS YOUR CASH VALUE.

[@MgGlobal]

@@astroman30 no no no. Remember the insurance company is committed to pay your the death benefit what ever it is. The cash value is a representation of what the company is fronting you in your living years. They will not pay more than the death benefit. Now if you want the cash value and the death benefit get your self a VUL a variable universal life. You will love it. You get both. Cash and DB

[@astroman30]

@@MgGlobal "Fronting you??" So, BORROWING against your own money only to lose the balance to the insurance company, and you think that's a good idea? VULs, IULs and/or ULs are garbage. They're actually worse than WL insurance. The fees/commissions eat up the CV leaving you to pay out of pocket for the ever increasing term policy. You NEED to stop ripping off people for the sake of high commissions. May God have mercy on your soul for all the people you scammed into buying trash value insurance. That is, if you believe in God.

[@bsm6776]

Single premium at an earlier age is a good deal. It provides the minimum for burial costs and such.

[@wethepeople7778]

Continued compound interest... sounds good. Able to take money out reinvest and the money still grows like you never took it out. Show me the math!

[@astroman30]

You lose all your cash value to the insurance company. How's that for "math?"

[@saeligutierrez8635]

Wow that’s insane agents do that?

[@gdiaz9689]

I'm 30 and i pay 25$ a month for 250K term - whole life would be 175 a month......PAYDAY lender of the middle class is exactly right!

[@retiredmanager510]

That’s where the problem lies, how long is the term? When it expires the rate goes up tremendously. I get people all the time that are forced by a divorce to buy life insurance and they aren’t in perfect health. That term expires and you could be paying $400-$600 a month if the medical check catches anything or you smoke or do any risky sports... don’t shop as a 30yr old. Shop as a 50 or 60 yr old when the term expires and average the rates.

[@dakotadak100]

Its cheap because they are 98% certain to give you nothing.

[@gdiaz9689]

@@dakotadak100 you mean if I don't die, I realize that. But if I do then my family is covered. It's just a matter of how you want to administer your money. I would rather the cheap insurance just in case and save money on my own. If you are a bad saver then yes, save in a whole life policy.

[@dakotadak100]

@@gdiaz9689 Yes, there's nothing wrong with that.

[@hassanpaywandi221]

Can you please direct me to somewhere which I can check mathematics to understand why whole life insurance is a bad idea? Thanks.

[@astroman30]

Sure, what part of "The insurance company keeps your cash value" do you not understand?

[@disabilityinsurancequeen4127]

Insurance is NOT an investment period. However, I wouldn't go as far as saying that Whole Life is a rip off. I've seen more people benefit from it than be hurt by it. But hey! I respect Mr. Ramsey's opinion.

[@NenskiTrill]

Ok. So have more people benefited from term life or whole?

[@ZeqaSnipes]

Policies have to be structured correctly. Problem is most are not.

[@DanielSelk]

People love to twist words, especially Mr. Ramsey's. Love this channel! =)

[@RealLifeMoney]

Daniel Selk I know right? Luckily he’s open to take peoples questions so we hear straight from him 🙌

[@johnstown2451]

My buddy is single and makes GREAT money. He lives with his parents and is almost 30. His financial advisor said it might be wise to open a whole life to keep money separated in the event of a divorce... I can’t relate on so many levels but I wanted to ask to DR community. Is whole life protected against a divorced?

[@brentbrenneman]

Depends on the laws in the state. In Florida, I know it's creditor protected

[@stevee8318]

Trust would probably be a better option if that's the goal.

[@LyonsArcade]

is his financial adviser trying to sell him an insurance policy? If so, I wouldn't trust the guy's opinion.

[@joeb1522]

@@stevee8318 Agree

[@Gevans5472]

LOL 😂

[@beto4Cristo]

Nelson Nash

[@gideondavid30]

Not apples to apples term vs life insurance.

[@vincelombardi2669]

What about having a whole life insurance and using it as your own bank? This is what a lot of private banks do or real estate people do. They use there own money that is make interest in whole life.

[@sumobowler3790]

Dave has often said, and he is correct, insurance is not designed to make you money. You will most likely lose money using insurance as an investment. Use insurance as it is meant to be used; which is to protect the things that make you money. Invest in investments in order to earn investment money. I highly recommend his books The Complete Guide To Money and The Total Money Makeover (Get the one that has "Classic Edition" in the upper right corner of the cover. It is the most recently updated). FYI I do not work for him, now or previously.

[@realnapster1522]

It’s not a bank. They charge you heavy commission. If you want to save, save your money in a high yield savings account. If you want to invest use a 401K or IRA. If you still have money left over open a simple brokerage account. Insurance is for protection not for savings.

[@benrules13]

I don't feel like you answered Vince's question... If you use it like a bank what are the average procedes? In comparison? Generally what percentage is charged to borrow?

[@420terrence]

Got to be super rich already it seems

[@tash6638]

@@realnapster1522you’re a moron.

[@chanceallen7]

I am trying to fully understand based on my own research whether or not whole life has its merits but I can’t get over your math being completely off. Makes me think I shouldn’t trust what you’re saying. $100/month premium would be $1,200/yr and insurance agents normally get 50%-90% of that figure. $600-$1,080 total payout, not $4,000. If there’s a company out there paying 400% commissions, can you tell me where so I can go sign up and sell term?

[@Paul-jp8zz]

When Dave comments that when you die, your beneficiary "only gets the insurance and not the savings", I say full-stop, end of conversation. This makes it quite clear that Dave does not actually know what he's talking about (specifically and only as relates to this topic.) "Cash Value" (more specifically, "Cash Surrender Value") or "the savings" is the "net-present value" of the death benefit, not a separate bucket of cash on top of it. If you buy a house for $200k, pay off the mortgage in 30yrs and the house has appreciated in value to $400k by that time, does the bank give you the deed AND the extra $200k equity you have? Of course not. The death benefit *is the savings* and if properly structured, will far exceed what you put into it, is accessible to you throughout your lifetime under any and all circumstances and extremely favorable terms you can't find anywhere else AND the entire death benefit will pass on to your heirs once you die as long as you don't ignorantly manage things while you're alive. Love Dave and what he's doing for the world. His advice is nearly always spot on for his target audience, but he's wrong when it comes to whole life (specifically *whole* life, not the newer variants.) He's not making appropriate comparisons or considering the living benefits and the opportunities this tool can create. And again, his statement about how you don't "get the savings" shows that he simply doesn't understand how it works, why it works, or what it is. This is surprising to me given how much he knows about so many other things. If he does understand this, and he's presenting it this way anyway, then he's lying to his audience. At least be properly informed Mr. Ramsey. I am not somebody who sells this stuff either or is at all involved in the industry. I'm a 20+ yr satisfied consumer of it. To leverage this tool appropriately, you need long term discipline, which I dare say is something most of Dave's target audience isn't prepared for (yet) and certainly not during "baby steps" and so in that regard only, Dave is probably right in steering his audience away from it. "Payday lender of the middle class" is nonsense rhetoric.

[@hieutt163]

That's true. Whole life insurance is suitable for people in the young age like us (20+yr). By contrast, old people will never afford and should not buy it because it is too expensive, and they don't live long enough to use the living benefits. If you are over 40 yr, term and ILP insurance are the best choice for you.

[@Paul-jp8zz]

@@hieutt163 By 20+yr I was referring to how many years I've owned it, not my own age. I was in my 20's when I bought it and agree that if somebody is nearing retirement, buying a WL policy (or any life insurance policy) on themselves at that point will be expensive. For the long term "living benefits", yes I'd agree it's too late if you're near retirement - but only as relates to insuring yourself. At that age, one could buy a WL policy on somebody else, a child or grand-child, and still leverage it themselves for the living benefits, turning over ownership of the policy to the insured younger person later. Folks this age tend to have much more money they could funnel through a WL policy if they chose to, setting up the next generation to further leverage the living benefits during their own lifetimes.

[@Bruce-z6m]

Well how do you know when your gonna die with term

[@emms6724]

You made this crystal clear! Thank you for leading us into the light instead of to the slaughter like the rest of these whole life selling you tubers.

[@evazquez595]

⁠​⁠ I hear this a lot from people who don’t understand how the functions of whole life insurance work. It’s a powerful tool to recycle and recapture dollars back into your pocket while earning uninterrupted interest, and no I’m not an insurance agent. I work in commercial real estate and pour tons of money into whole life insurance every month because it gives me tons of liquidity that I’m able to access at any time, gives me tax free growth that I’m able to leverage against, and earns me an uninterrupted risk free return on the cash value.

[@CarolBennettGA]

My husband and I have two term life insurance policies. Aside from that, my mom started a whole life policy for me back in 1992. I was 7yrs old. Its for 25k (which would actually cover both our funeral costs if we outlive our term life), $8.50 a month. I don't give a fig about any cash related to it. It's super cheap, extra coverage, and we are keeping it.

[@andrewdutton3831]

Evan B. 8.50 per month for a mere $25K doesn’t seem like that good of a deal. In 2031 (when you are just 46, and statistically VERY likely to be alive), all those $8.50 premiums would EASILY be worth $25K if invested in a large cap mutual fund. Dave Ramsey uses 12 percent. I used a conservative 8 percent growth for you. This means, all your premiums after 46 are kind of a waste. And IF you die prior to 46, your term coverage protection is MUCH cheaper. I do get that 8.50 is chump change, and maybe it’s more of a hassle to fix it than forget it....but money wise l, it’s a waste.

[@tg8603]

If you keep it your mitigating your future savings and what you will pass on. It’s simple math.

[@jayallen1334]

How come you do not have Pamela Yellen on debate this?

[@allpraisegoddessmonika2887]

There's no debate.

[@jayallen1334]

@@allpraisegoddessmonika2887 I differ with Dave on this subject.

[@Bigpitbull509]

what about people who only par $35 a month?

[@ejw1234]

Also, how do you hedge against long-term care needs in late retirement without whole life and your term ins expired?

[@chrisstaub5880]

It's called savings/investments. By the time term becomes too expensive, you should have plenty of money in investments to self-insure.

[@realnapster1522]

@@dakotadak100 you don’t need to have cash. Just invest your money using a brokerage account into an index fund. There are also auto investment plans now. Called robo advisors.

[@amikagahbo2487]

I wonder what Dave's opinion is on Final Expense Burial Policy's . For people on fixed incomes such as social security or disability where they don't have the funds to take care of it themselves therefore the bill gets passed on to their loved ones to pay .

[@astroman30]

IMHO, I believe pre-paid burial would be better than buying a WL policy.

[@ShutUpAndRoll95]

Term is just a discount whole life knock off. Whole life is the standard of coverage. Term is just renting a portion of that spread.

[@andrewdutton3831]

You’re mistaken. You are either a whole life salesperson, or you have been heavily influenced by one. If it’s the latter, please watch out for yourself.

[@ShutUpAndRoll95]

Andrew Dutton lol no sir whole life is the standard. Whole life has been around longer then term. Term came out as a product for people who are “price” shopping so insurance companies can capitalize on that market.

[@andrewdutton3831]

Matheus Bloemer okay, I’ll have to research that. If you’re right, I definitely learned something tonight. Can you let me know whether you are involved in the sale of this product? Just curious if you might have a conflict of interest.

[@ShutUpAndRoll95]

Andrew Dutton conflict of interest would require that I receive some sort of financial gain. Since 90% percent of people on here are for term. I would benefit more from term then whole life. Since that’s not the case, what kind of interest would there be if I’m advising towards whole life? Money is not a reason for my rants 😂

[@andrewdutton3831]

Matheus Bloemer well, if your commissions are more lucrative for selling whole life, then you’d have a conflict of interest....even if 90 percent are “here for term.” If you make more $$ selling whole life, you’d want to see as many people as possible get whole life.

[@emac1081]

So what do I do if I got scammed into a whole life policy 8 years ago in my 20’s? If I cash out now I’d lose a ton of money (10k). I have 11 years left to pay. Should I just keep it at this point?

[@webfreakz]

How much do you pay next 11 years?

[@tblack21]

I’d keep it. Assuming it’s a participating whole life once you are done paying you will have it forever and the dividends and death benefit will grow.

[@Mongo-ui1ll]

So what do you do if you are over 50 and want a ploicy up too 30,000? For final or for money

[@ThePeterDislikeShow]

Ever heard of a savings account / CD / treasuries that you can accumulate $30,000 in?

[@ezprogramming7887]

@The Dave Ramsey Show, the dividends for whole life policies vary. Some are 6-7%. Have a look at what Equitable Life Insurance offers to clients. I'm not sure why you mentioned 1%, if it's the case for that specific policy, then the insurance company backing up that policy is not a good one.

[@stephanieharries7746]

I don't think Dave need to be calling people names I mean it's one thing to just say the fax that to call people names is clearly abusive and you know it's different if somebody's you know he's just yelling out names as saying names and that's to me that just brings the whole respect level for him down because he's losing the point by being verbally attacking people it is just turns most people off if they're smart

[@brettallen1440]

Dave's ignorance on this topic is wild. Here for his listeners... you're full of shiz Dave. Those same listeners that you've charged for books, courses etc to make yourself money hand over fist! Talk about a scam, Dave Ramsey defines it. Stay in your lane Davey boy.

[@astroman30]

Says the lying insurance salesman.

[@brettallen1440]

@@astroman30 who's the insurance salesman? I happen to be an ERISA relationship manager and QKA.

[@astroman30]

@@brettallen1440 No one cares. And, you're an idiot if you recommend trash value insurance. Stop scamming people.

[@KenshiroBoss]

Dave recommends term life, and sells it as well. That’s scammy. I’m going to research all the benefits of whole insurance myself

[@jonnelson9760]

Well I just thought of one case where this analysis does not hold up and that is the case where you are using the dividends to buy more insurance. In that case the return would be in the form of a higher payout. The return on investment is still probably low though and equivalent to cash.

[@ramothwatson9402]

Term Life policies lapse if you miss a single premium; which could happen because of loss of job or a pandemic like we are currently going through. This could occur at a time when you are uninsurable. Whole Life generates a cash value which sustains the policy during those periods through automatic premium loan (APL). Each person’s situation is unique. It’s never a one size fits all scenario.

[@jbone79]

I am a huge fan of Dave, but I dont see it to be as bad as Dave Says. I think the fact that the policy never expires is a good thing and eventually will be fully funded. And also you can get the benefit on top of the cash value if you write the policy correct. I just dont see it as that bad, it's just a way conservative investment. And guess what, you never loose value even when its ties to the stock market. And yes it can be used as a tax shelter.

[@joeb1522]

I am a tax accountant and I agree with Dave. You are way better off just investing in a taxable account. Way better off. A taxable account is less expensive and less complicated.

[@michaelross8036]

Agree, the cash value of the WL will ALWAYS come out on top, no matter what anyone says. It will beat out your annuity , 401k or whatever you have.. .providing all numbers are the same across the board for comparison purposes. Dave's got this one incorrect in my opinion of course....not looking for a debate.

[@michaelross8036]

@@joeb1522 nothing complicated about it.

[@sevan8350]

⁠@@michaelross8036what do you mean providing all your numbers are the same across the board ?

[@_CashFlowTy]

To be unclear is to be unkind

[@AnaGonzalez-xj6pm]

Thank you!!

[@Retiredmco]

Absolutely no!!!!!

[@tg8603]

I hate him but he is right about this subject. 100%

[@1dkidd]

The people who buy the most whole life insurance are older, rich people.