Never Buy Life Insurance From A Baby Food Company - Dave Ramsey Rant

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[@SeychelleSunshine]

My mom bought Gerber life for my siblings and I. She is an immigrant from Jamaica who got conned by a life insurance agent who knew she didn't know the laws of American insurance. She passed away in 2009, I was 13, my siblings were 10, 7, and 3. After funeral expenses there was nothing left. She put more in than we got back; it wasn't even a 1/3. All it did was add anger to our pain. Be careful and calculate the agreement yourself. Life insurance isn't an investment, that's why they're not called life investments.

[@LibertyMadison]

Sorry to hear this and sorry about your mom

[@sophimokeyra445]

@@LibertyMadisons vs n was

[@robertbell525]

Buying a term life insurance policy is ok, they are minimal cost vs the potential payout. The only reason to by insurance is to protect your family financially, not investing.

[@traceycancio1795]

If you think about burial costs, etc. , the time frame to bury the person vs receiving the insurance is a big gap.

[@patriciachicco9763]

This is a question I've had as well as a new mom. This helped a lot. Thank you Dave!

[@helenaclemons5287]

Patricia Chicco - Hi Patricia if you're looking for the buy Term and invest the difference philosophy, that's what I've been offering my clients for 16 years, please email me if you would like to talk. [e-mail].

[@rvenable8958]

Patricia Chicco I have the cheapest Gerber plans for my sons and myself (term) and I see them as a back-up plan incase the worst case scenario happens to one of us.

[@Anditeshordo]

R Venable you should be able to get a cheaper child rider on your term insurance if the company offers that rider

[@chrissy7635]

Lol, I just love the noises he's making in this episode! It's like he's talking to an actual baby!

[@Skaterwar81]

Thanks for the advice.

[@AlGarciaExecutiveddr]

haha ha this hits home, My mother passed away about 10 years ago now RIP, when she pasted my dad gave me a policy that he found in there files "the Cover Page said $100.000. policy from Gerber back in the 60 ties or 70 ties, of course someone didn't understand it and filed it away and eventually stop paying for it , my father didn't even know about it but here it is, so I take it and go to the Gerber company here in Irvine with the proper paper work to see what its worth and to cash it in, , what's so funny is my sister is calling me non stop telling me she wants her part ha ha " I paid for funeral, church, everything, moms death cost about $9,000. in total. so we get to Gerber, when all was said and done the policy was worth $230. WOW, and leaving the Gerber company my sister says can I have my half ??? ha ha ha Life is funny. Take care of your self.

[@gjasick]

Lol, that's not even enough to buy baby food for 9 months.

[@fatiic4841]

That's funny

[@beans2605]

Hilarious

[@Trinatalks]

Thanks! now I can end my research on Gerber Life Insurance got tired of these applications in the mail

[@hamsicle]

This is Dave at his best. He can say some dumb things but this is 100% spot on. Spot on. Just look who's selling it.

[@lindsayashton1385]

No to whole life, but YES to life insurance. I think a lot of people don't realize how affordable it can be. For $200k on me and a $10k rider for each of my 6 kids, it's only $15/month total. $500k on my husband for $25/month. Peace of mind=priceless. My sister-in-law just buried her baby and the financial stress on top of the emotional trauma was horrible. A lot of family came to her aid, but I don't want to be in that position or be a burden. My dad died in an accident at age 41 & I left my mom to raise six kids under age 15. Without his life insurance, I would have lived a completely different childhood. If you don't have life insurance, get some today!

[@mandicarter5749]

Lindsay Ashton who do you insure with? I need to switch!

[@DanielleCyriaque]

Lindsay Ashton what life insurance?

[@buildingwithdad5005]

@@DanielleCyriaque hey did you ever get your questions answered?

[@carmenflowers7175]

I realy thank God for enlightening me with all your advises sabe God bless you. greetings from Canada.

[@mkite715]

Omg a self insert catheter and Snuggie 😂😂😂

[@icanmanifest]

Hey guys. I've personally seen MANY Gerber policies including the one my mom bought me and my wife's mom bought her. My wife's cash value at 21 was $800 lol. Not even close to the amount Dave was quoting. It's always about $700-$800 after all that time. It's HORRIBLE! Not arguing w Dave's logic but the cash value is beyond pitiful.

[@biancaxxgooglexx3168]

They are actually getting sued right now. I am So glad I didnt do it, they are robbing from ppl It Needs to be stopped maybe if ppl start sueing them for misleading they would stop! makes me so mad! As parents, we always want to do the right thing and create a good future for our children, this makes me so mad This company is doing this! I literally was about to invest more. So thankful I did my research. Parents just put money away in savings for ur babies, It will help and save u in the long run

[@rosedevereux2391]

thank you! I did not know. A friend was considering a policy.

[@ashlynnm1338]

How do you go about this?

[@2themaster]

$22 per month 18 years = $125,000 only if you get 29.8% return per year

[@superminecraft01PvP]

Underrated comment. Dave definitely got the Math wrong on this one. 22/month or 264/year invested at a 10% return is only ~13k after 18 years. Still probably better to just do the investments yourself vs going through an insurance company. Also a lot of people’s personal anecdotes in the comments saying Gerber doesn’t actually pay out what’s advertised.

[@Dream-bebe]

I would listen to Dave but his ego, is too much he puts people down and calls them they are stupid! He is so rude !!!

[@hildemcconago6524]

Thank you

[@brysonlloyd8017]

Hey Dave and listeners, can someone link the independent research that showed those percentages on whole/universal life policies?

[@ColinJ388]

I'm not really following the math here.. Same numbers into your investment calculator website says you'll have around $13,000 after 18 years. (That's $22/month, 18 years, and 10% growth)

[@bradleymaravalli2851]

That's what I got too! Very confused by the math. Though I do agree that consistently making investments rather than taking on whole-life life insurance is the way to go.

[@lolzable1]

He just expects the baby to become an adult at 45 years old.

[@buildingwithdad5005]

@@lolzable1 🤣🤣🤣🤣 oh snaps IM DYING off your comment!

[@MissEricaBarnes]

Self insert catheters LOL

[@rhoadestraveled]

So my husband and I have given life insurance from our employers but we purchase an extended policy so we can pay off our house if one of us die. Is that what he's saying staying away from?

[@Alex-eb6je]

Aw man that commercial was so nostalgic. :(

[@janelpulley6652]

Types of Life Insurance Term Insurance- Life insurance providing coverage at a specified premium for a specified length of time. This type of insurance does not build up cash value and the premium normally increases after a specified time period. Permanent Insurance- Permanent insurance provides long-term financial protection, including both a death benefit and, in some cases, a cash savings. • Universal Life policies offer a flexible premium life insurance policy under which the policy owner may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. • Variable Life policies allow the money that remains after payment of premiums to be invested in vehicles of your choosing. Variable life insurance does have the option of a minimum guaranteed death benefit; however, variable life insurance can be expensive and risky, depending on the type of investments made. • Whole Life policies provide lifetime protection at a level premium. Premiums must generally be paid for as long as the policy is in force.

[@fritogranito]

Big fan of Dave Ramsey. Whole life is garbage, this should be undeniable. His fingers did fail him here on the calculator though.

[@JaronPope]

lol I love 4:06

[@GigAHerZ64]

Hey Dave, do you have an apple laptop with windows installed on? :o

[@4lc0n22]

We need to have life insurance for our mortgage but we have critical illness cover as well (total £80/month). I do question the value of the critical illness cover which if we didn't include would half that payment. However it does provide significant peace of mind in the event one of us had a critical illness...

[@ThePeterDislikeShow]

Isn't there at least some utility in buying insurance to prepare for funeral expenses on children (or pets for that matter) if one can't come up with that out of pocket? Maybe not from Gerber but I can't see anything wrong with this concept.

[@shrimplysuperior]

I'm confused do you buy life insurance as an investment or not

[@roncur]

U buy life insurance for life insurance only. Not as an investment

[@roncur]

@@elyisrael2457 wealthy people shouldn't buy life insurance as an investment either

[@fritogranito]

Self insert catheters? Now there's a product that sells itself.

[@LittleHatori]

God yes.

[@102nightwing]

Ineeed and Amen!!! Don't get ripped off!

[@MAHWL]

Wow !! Yes!!! I bought the whole life from gerber 20 years 4mths ago when my 1st son was born and 14 years ago when my 2nd son was born .. i pay about $6/mth with the idea that if they were to pass i could cover their necessary expenses. I tried to cash out 2 yrs ago for 1st son's college and they told me i can only get about $400- $600 ... so 2 years later, should I just cash it out and close the account??

[@edgargarcia1830]

MariaRChiJones close it

[@edgargarcia1830]

MariaRChiJones message me I can help you

[@traceycancio1795]

Do you get money back?

[@tyleraustin33]

You forgot erectile dysfunction medication ads too...

[@jbtelleria24]

What rate of return was being used for the hypothetical investment example Dave used? That is, $22/mo payment, 18 years, $0 Present Value, __?__% rate of return, $125k Future Value. With this data input, it looks to me like the assumed rate of return was 27.38%, this seems like a lot to ask from a decent growth stock mutual fund. Am I missing something?

[@ClareNViv]

Is he talking about William Devane from Mel's "Payback"?

[@rhondapayne2195]

ClareNViv yes that is who he is talking about!

[@mammothorbust]

I'm confused. I just ran these numbers on my financial calculator: $22 payment per month, 216 months (18 years), 12% interest/year (that's what Dave usually uses), and I get $16,673 future value. How did Dave get $125k?? Not saying I would get the policy, but I'm trying to understand Dave's calculation.

[@jasonburns6411]

Mike Hughes the power of compounding interest my friend

[@sistahfwend5791]

Jason Burns Right! Mike did not take that into consideration

[@chrisarguello1170]

You're right. His calculation is WAY OFF.

[@chrisarguello1170]

Mike is right you guys. Even with compound earnings, $22/month over 18 years is $4700 total in contributions. You don't have a be a math genius to understand that $4700 will not turn into $125000 in 18 years.

[@ColinJ388]

He seem pretty flustered on the calculator. I'm thinking he moved a decimal somewhere.

[@HunterShows]

There are no financial "products." Those are called services.

[@icanmanifest]

In response to a previous post! Of course there's term life for babies! You add it on as a rider to your adult level term policy. $15k-$25k (funeral costs + loss of income for a grieving period) is reasonable for a child. I do child term rider add ons all the time, and the parents only pay for one kid and it protects all of their kids. And it's $9/mo for that rider for $15k. So it's less than half the Gerber and invest the difference. Cash value at 18-21yrs old in a Gerber is $700-$800! If you got a Term rider and even SAVED (not even invested) the difference under the mattress you'd have over $2,000. It's not complicated! Of course investing the difference would be better as Dave said.

[@traceycancio1795]

How long does it take to bury someone vs receiving the money after all proper documents are sent in?

[@buildingwithdad5005]

@@traceycancio1795 hey Tracey was your question ever answered?

[@LUIOFFICIALLY]

"I got a Gerber Life car" - Dave Ramsey

[@eessuccess]

You don't have to be so insulting when explaining the reason.

[@eastsidez18]

This policy provides valuable benefits. As of this date, you have the following important coverages: • Modified whole life insurance death benefit of $23,320 in the event of the insured's death • A non-tax qualified Flexible Premium Annuity Rider designed for long term accumulation of money with a current credited interest rate of 4% and guaranteed never to credit lower than 4% • An accelerated death benefit rider which can advance you up to 50% of the policy death benefit when a physician confirms that the insured's death with result within a specified time • Waiver of Premium Rider (Hospital or Nursing Home) is designed to waive your premium payments after you remain continuously confined in a hospital or nursing facility for 6 consecutive months • The policy loan interest rate is 7.4%. Please refer to the loan provision in your policy • Total Death Benefit is equal to the policy face amount plus any term and /or annuity riders in the event of insured's death

[@MasteIsIllmatic]

Why not get term life Insurance and invest in real estate and or mutual funds and bonds with that money?

[@EmpireTextbooks]

No, Dave Ramsey, you’re not a millionaire because of how you invest. It’s because of your radio show. Your personal financial moves caused you to be bankrupt, so it’s a good thing this radio show saved you!

[@caseyrichards3212]

LOL!

[@rem145]

It’s kind of the worst financial product in the world. Almost all financial experts agree

[@militaryman9638]

Math is way off. 12% compound interest turns in to $16,484. What is not being mentioned, is the fact that these policies typically cover even if a disease or illness comes up early in life.

[@IceBlueThug]

Military Man That’s a rider; a living benefit, it must be added on. Doesn’t come automatically.

[@Trailminer]

But it’s just pennies a day!

[@michellemarie1197]

Well i mean its intended for life insurance not fun money, but its a terrible investment and takes too long for you to get to the six figure range of life insurance

[@SxyGrl44]

I have Gerber life insurance for my daughter but I was like why is it so expensive? And my coworkers were saying it saves for college as well so I figured I'd keep it until I seen this video...

[@djdavidforeal]

yea get out of that. search for Primerica in your area. they do term life and investments for college or retirement. and will definitely help you the most. never have a life insurance policy and savings together... I'm glad you saw this

[@icanmanifest]

Of course there's term life for babies! You add it on as a rider to your adult policy. $15k-$25k (funeral costs + loss of income for a grieving period) is reasonable for a child. My company does a term rider add on, and the parents only pay for one kid and it protects all of their kids. And it's $9/mo for that rider. So it's less than half the Gerber and invest the difference. cash value at 18-21yrs old in a Gerber is $700-$800! If you got a Term rider and even SAVED (not invested) the difference under the mattress you'd have over $2,000. It's not complicated!

[@vadertime9880]

Yes, im a Primerica rep myself. Our child rider is up to $50k

[@ms313city]

Wow! I've had Gerber for my son since a baby. He's about to be 15 now. Was this a lost cause? Do I just get out of it?😢

[@ashlynnm1338]

@@ms313cityI’m 2 years in… wondering this too

[@eastsidez18]

I have Modified Whole Life Insurance with flexible premium annuity rider. what do you guys think about that?

[@edgargarcia1830]

jamar winn your going to get ripped off for the rest of your life.

[@marielaarana5732]

Whole life is a rip of because cash value starts saving after 5 years and still cant take it out before you reach 100 years old or else its a loan and if you die company keeps all your saving...believe me if you have it you already signed your savings away

[@ascensionbias7528]

(Shut it down, they know!)

[@Leah-jp9im]

What if the baby food company have a life Insurance Divison?!? So if you’re looking just to have insurance it’s fine but not as an investment. Is that the problem?

[@buildingwithdad5005]

Yes ma’am that is definitely the problem lol.

[@OHHHHUSBANT]

Dave Ramsey and his suspicious financial wealth

[@amiraclefinds4867]

I am agreeing about not buying whole life insurance on ur children but plz plz get life insurance for your children as soon as they are born. or just add them on to your work's life insurance plan. I do not wish it on anyone but it has happened to us. I lost my daughter at 16 weeks and was a total total wreck. mind was in a whirlwind. could barely take care of myself. and the last things you want to worry about at that time is how you are going to pay the medical bills and the furneral bills during that time... so plz plz get insurance

[@lindsayashton1385]

Tina Ferrier I agree. I think a lot of people don't realize how affordable it can be. For $200k on me and a $10k rider for each of my 6 kids, it's only $15/month total. $500k on my husband for $25/month. Peace of mind=priceless. I'm sorry for your loss. My sister-in-law just buried her baby and the financial stress on top of the emotional trauma was horrible. A lot of family came to her aid, but I don't want to be in that position or be a burden. My dad died in an accident at age 41 & I left my mom to raise six kids under age 15. Without his life insurance, I would have lived a completely different childhood.

[@Andy-wo9bm]

Tina Ferrier a plan through work is still too vulnerable. Work and the benefits offered could change instantly. An independent plan is best, but yes I agree; you can have a child rider that automatically adds newborns to your policy.

[@karie_brown]

Lindsay Ashton hi who do you have your policy through

[@demi5378]

@@karie_brown Yes, would like that information as well. The cost is unheard off for the amount of coverage in NJ.

[@buildingwithdad5005]

@@karie_brown hey did you ever get helped or get your questions answered?

[@MAHWL]

What exactly is the meaning of "face value"

[@edgargarcia1830]

MariaRChiJones coverage

[@Eman1900O]

this guy must REALLY be optimistic about the market. he talks as if there is not a huge bubble and debt. i'm 30 years old and i have zero confidence in the future stock market when i'm 60 or 70. i will never invest in a mutual fund

[@costco_pizza]

Yipyo1986 Completely agree. This run up in the stock market is one big giant scam. It's completely unsustainable and out of control. Expect a huge crash to happen very soon.

[@AslansMane88]

Yipyo1986 Then you will be poor.

[@djdavidforeal]

have you looked into it? or u just go by what u think?

[@Eman1900O]

mwall444 I will be poor? I found a career that is easy on the body and I enjoy and makes 150K a year minimum. Doubt I'll be poor.

[@costco_pizza]

Yipyo1986 let these guys invest in these scam mutual funds. They will be crying in a few years. I will stay as far away from them as possible.

[@goodiegud2701]

I just got that insurance for my kids should I cancel....if so where is good insurance

[@mikevale03]

Goodie ToBad I also have this insurance my oldest son is 10 and I'm trying to figure out if I should what I'm so confused about all this

[@buildingwithdad5005]

Hey did you already get your questions answered and taken care of?

[@buildingwithdad5005]

@@mikevale03 hey did you already get your questions answered and taken care of?

[@DaveThomson]

Dave would be correct if he used 35 years and not 18

[@kurtzeman1]

They do advertise on TV.

[@marielaarana5732]

Kurt Zeman yeah because the people that buy the policies are funding it wit their monthly payments that "should " be going into your savings

[@mattdiliberto4967]

So you get $12000, roughly, from a $4752? Not bad.

[@edgargarcia1830]

Matt Diliberto not bad compare to if u would've had it under the mattress. If I would have put it in a mutual fund, I would have 3-5 times more.

[@yranson5666]

22x12=264 / 264x18=4752 / 4752 at 12%=125,000 how

[@myopinion2944]

Y Rodriguez that's the product of inbreeding my friend.

[@unniq36]

If Gerber was a sponsor Dave would say it’s a great insurance investment.

[@gjasick]

Agreed.

[@astroman30]

he can get any sponsor he wants...he chose not to pick scams.

[@Andy-wo9bm]

Let’s just say this out loud: Taking financial advice from a radio show host who has zero legal liability to you. Goes both ways folks, do your own homework.

[@CherylMacKay11f]

Andy Butler he pretty much has been super successful and lives by his own advice. What are you worth?

[@astroman30]

Says the insurance salesman.

[@Andy-wo9bm]

astroman30 Thank you for making my point to yourself. If I’m a licensed insurance agent at least I have a legal liability to you if I flat out don’t know what I’m talking about or lie to you like Dave does. He’s been exposed multiple times for getting life insurance grossly inaccurate.

[@astroman30]

@@Andy-wo9bm By all means, please elaborate on what Dave's "lie" is in this video.

[@AslansMane88]

Dave, could it be Gary Busey from Lethal Weapon films?

[@briangutierrez3765]

Do people ask these questions just to get Dave riled up?

[@lucuslopez6866]

The issue is most Americans failed their basic math class in HS

[@user-gs9dx1dg9n]

Those 17 people who dislike this video probably have bought Gerber life insurance

[@ThePackersfan10]

Is this really a rant about the commercials on Fox News?

[@thephilosophersreturn4724]

This guy can't even do math.

[@janettevalenzuela9686]

I mostly agree with everything Dave says but on this one I completely disagree. Yes you should never buy whole life policy because it is a rip off however there are other life insurance investment vehicles that have guaranteed rates such as a global index universal life policy or a variable universal life policy for more risk, he says to get term life insurance but what happens when the term runs out and then later someone gets cancer and dies hello? Then what is the family left with, as people get older they get sicker and fatter and the term life insurance becomes a lot more expensive or they become uninsurable, and, people tend to want life insurance when they cannot get it, and if you follow Dave‘s advice you will be out of luck because you will no longer be insurable. The other reason to buy a GIUL a VUL life insurance policy is for the tax benefits these types of policies are designed to be long-term

[@janettevalenzuela9686]

Also it’s better just to Get a policy for yourself, a long-term one, not a term, and add your kid to the policy. Your kid will be covered until I believe the age of 18.

[@caseyrichards3212]

If you have 500K in investments(mutual funds) why would you need to have life insurance?

[@DougieForlano]

Casey nailed it you take the money you’d save and just invest it

[@deandrepipkin8039]

Dave, that was great but a bit brutal towards life insurance. Life insurance is a great tool to protect your loved ones if you're the breadwinner and they rely on your income. It provides tax-free lump sum of cash that can be used to replace income and pay funeral expenses. It shouldn't be thought of an investment tool where you can see major returns for your money, but as a failsafe so your loved one's dreams don't die where you do.

[@Anditeshordo]

Deandre Pipkin he is referring to whole life and cash value policies. people buy those as an investment and not income replacement. buying term and investing the difference will be the best for all families. He base more videos on life insurance. Also getting any life insurance on a child should be added as a child rider and not through Gerber life. you will get a better deal as a rider

[@ransom182]

I want to call in and say Jesus told me to buy whole life insurance.

[@sistiff3719]

Why lie..God would not tell you to do that.

[@jamesperkins9031]

Lost here Dave. People buy insurance policies on their children to cover funeral and final expenses if the unthinkable happens. it just happens to build cash value. As a sole investment it would not make sense. If your child dies tomorrow would a majority of your dedicated viewers wish they had coverage? I think yes.

[@laponte2010]

Jesse Perkins You can add a $10k child rider to your term life policy for $1 or $2 per month. Take the other $20 per month, put into an investment and gift your kid a $15k check at age 18. or a $30k check at age 24, to help buy a house or pay for school expenses, etc. I know any 24 yr old would pick $30k cash over a life insurance policy on their life.

[@traceycancio1795]

And if burial is next week how long does it take to receive the money to pay the expenses?

[@dprophetic]

The baby would have life insurance and funds to go school and or start a business regardless of the state of the stock market. I fail to see how this is so horrible. I think Dave undervalues objectivity. Even though he's endorsed by a term policy company, it wouldn't be a detriment to acknowledge the pros of other insurance products. For those that need a stern fist and those who don't have the capacity to learn this stuff he's great, for those that do he comes off as an extremely biased inaccurate advocate for products that he has ties to.

[@AslansMane88]

dprophetic I think Dave understands 6th grade math and you don't. lol

[@MAHWL]

The child would not have $$ for school !! I've been paying gerber for 20 yrs, i tried to cash out 2 yrs ago for my son's college tuition and they said i would only get approx $400-600

[@icanmanifest]

cash value on Gerber at age 18-21 is $700/$800. What business or education are you getting for that? As Dave says get a small 15-25k Term Policy on a kid and invest the difference.