This is Just Another Example of Why Whole Life Policies Suck!

[@calebmallen]

Life Insurance "dividends" are a return of excess premium. This is like overpaying your income tax, and getting a tax refund, and being excited about it.

[@agathachris9722]

Exactly. Its your money.

[@abark]

This is something dumb people say to sound smart, but it's really just dumb.

[@bryantdevault6014]

Some life insurance policies (known as participating policies) pay dividends to their policyholders. Dividends are generally not taxed as income to you. ... If you leave your dividends invested with the insurance company, the interest earned on this investment will be considered taxable income.

[@benseattle8978]

@@dakotadak100 Dave Ramsey gives good advice for poor people. Successful people? Not so much.

[@astroman30]

@@benseattle8978 What part of "The IRS classifies 'dividends' as overpayments" do you not understand?

[@hollybigelow5337]

For a second I thought he was going to say that's how the IRS operates, too, lol. It's true. So many people forget when the IRS gives you a refund they are only giving you your own money back because they charged you too much to begin with, and they can invest your money that whole time and just keep the interest.

[@tareshtheentrepreneur1327]

who is going to check their whole life policies after watching this video ?

[@anthonyemmm]

🙋🏻‍♂️ me

[@franciscoruiz291]

Let me take care of that headache for you guys!

[@Shadowwind4]

@Dillon Smith I can give you a whole life policy

[@Questioneverythingx]

anyone who follows DR doesn't have them lol

[@bryantdevault6014]

This guy hates whole life so much he forgot how to do simple math. if her annual premium was $500 for 30 yrs that’s only 15k. She still has another 10k available after her 15k loan. Seems to me there would be a capital gains tax on the remaining 10k.. oh and btw dividends can be taxed if she allowed them to be invested by the insurance company and they earned interest.. Don’t listen to this guy when it comes to whole life.He is sponsored by term life companies hence his distinct bias anytime whole life is mentioned

[@VegasOriginal]

This man wakes up at night in cold sweats thinking about whole life policies

[@sparksays7247]

And now, so will I. . .🥶

[@MiracleMortgages]

And rightfully so... They are whole for sure.... Wholly GARBAGE.

[@joshuafox89]

30x$500 is $15000. The lady has $20300 is cash value. How is this bad? Dave claimed in this video that the 30x$500 would be less than her cash value which isn’t true.

[@Questioneverythingx]

I want a count on "better than I deserve". This man is the best

[@KadooWilliamsENT]

$40 per month at 10% compounded could have been $80k for her. Sad

[@josephbranch2342]

I sold life insurance awhile ago.These policies are a rip off. Most agents push Whole life and Universal life because they make big commissions om these policies. People think the extra money paid in is a savings for themselves. The only way to get that money is borrow it.

[@RyanConradConradinspire]

I still sell insurance and feel this way. They also set Life insurance goals that are unrealistic if you sell Term only like me. Luckily I'm debt free and don't care about their silly goals. I sell what my heart knows to be a good policy and that's Term.

[@RyanConradConradinspire]

@@bryce9722 there’s always exceptions and what if situations. Many people don’t know what participation rate is, they don’t know what happens if the money grows and the policy cancels because they took too much cash surrender out at a young age, they needed the cash accumulation to afford the higher cost of insurance later....this list goes on and on. Some of it is lack of education to the consumer, most of it is an arguably bad policy with too many levers and moving parts.

[@bryce9722]

@@RyanConradConradinspire first and foremost I think as a consumer one should be educated and know what they’re getting themselves into before getting in too deep. Or have a very knowledgeable and trustworthy agent to get you in the right direction. Otherwise it’s so silly to partake in something that can blow up in your face

[@awakentotruthmichaelsmith4698]

Many policies allow you to take the money and then reduce it off the death benefit

[@robmartin217]

​@@bryce9722most agents are not properly trained,resort to being car salesman,sad

[@HoneyDooDoo]

Imagine she bought $40 worth of Walmart stock each month since 1992.

[@dacokc]

Or Amazon or Tesla or Apple

[@kashfortheking]

@@dacokc Apple maybe in ‘92

[@ZZPxFTW]

High risk investing vs a whole life policy... apples to oranges comparison. Hind sight is always 20/20; it’s so easy to sit in 2021 and say “if only she invested that in Microsoft or Walmart.” That’s just a dumb hypothetical. If she didn’t put $40 in on her own, saving that $40 on the policy wouldn’t have resulted in that investment either.

[@samolson5322]

Insurance is not an investment… it’s transferring risk to someone else. Can’t compare the two.

[@PringleDinglesonThe3rd]

I’m all for investing don’t get me wrong but you have to admit investments are never guaranteed neither was she ever guaranteed to live for this long which is literally the purpose of life insurance, provide coverage for risk such as an unknown death date

[@azteca6695]

Best "insurance" I paid. Paid for my funeral expenses. My family doesn't have to worry OR deal with it.

[@abark]

The rest of the people commentating on this matter will need their family to run a Gofundme to deal with their corpse.

[@admiralmurat2777]

Damn is it a wedding or a funeral. I did a funeral for $300 recently. Body comes to church, congregation cleans it with oils, pray over the body, men dig the hole, wrap the body in burlap, bury the body, priest says a prayer.

[@investinstyle-financeinves1181]

Term Life > Whole Life. Life insurance should protect your beneficiaries if you die before expected. If you live a full life, your beneficiaries should have enough time to save up enough to support themselves (or you theoretically will have saved enough in order to leave them with a sufficient inheritance).

[@teeduck]

Term insurance for her at 60 will be expensive

[@investinstyle-financeinves1181]

@@teeduck Indeed. In an ideal world, most people will have purchased a term life policy at an early age that runs through 60 or have saved enough to at least provide a modest inheritance by then.

[@benseattle8978]

@@investinstyle-financeinves1181 Fun fact: of all the Term Life policies sold, only ONE PER CENT ever pay a death benefit. The others? People either simply drop their coverage or outlive the policy. In either case, YOUR MONEY IS DOWN THE DRAIN. Yes, you've been covered in the event of an early death but what now....you're 10, 20 or 30 years older. Now it's going to be a LOT more expensive to buy life insurance. Oh, and that little heart/cancer/brain issue you had a while back? Congratulations: you're now totally UNINSURABLE. Thanks for the advice, Dave!

[@mbyrd6713]

@@benseattle8978 Thank you, thank you, thank you! This was the insight I was looking for. I’ve been watching these videos trying to get a better understanding of what to do, but no one could address my situation. I just bought two 30 year term policies for my 18 and 20 year old children. However, I was 27 when I got a cancer diagnosis and I haven’t been able to work since. Luckily, I already had a whole life policy. If I had term life, I would’ve been stuck at the end of the term. I do believe that my children will be able to save enough money to cover themselves, but what if one of them becomes disabled. The term policy I bought was actually a few dollars more than the whole life policy, so I don’t see the benefit there. I understand what Dave is saying, but life happens.

[@christopherbaione5963]

You are SO backwards !!!

[@ThaoWaldenberg-vj4rp]

Great breakdown! 😊 It's important to educate ourselves and make informed decisions. 💪

[@armyguy4124]

I like insurance. Insurance against debt!!!

[@turisteandoentexas]

🤣🤣🤣 👏 right Insurance of being able to peaceful sleep every night or insurance of not being afraid of losing your job and not have anything else to cover your bills = it’s called DEBT FREE 🎉🎊🤟

[@sparksays7247]

Extremely insightful!! Thanks again, Dave👍🏾

[@xenonkey7770]

I didn't understand anything 😸

[@Will-oj3un]

The only thing to understand is to get Term life insurance

[@blackworldtraveler3711]

I didn’t care. Don’t pay into life insurance anyway.

[@MrCleanMachine48]

people giving a company free money so they can turn a profit with it.

[@JiisTube]

Hehe I zoned out on the details too. Blah blah blah, I'm just glad I don't have to deal with it myself 🙃

[@kaohsiung99]

@Tee IGNORE complicated Life Insurance & tell your friends and neighbors to do the same. The only kind to buy is simple. It's called TERM LIFE INSURANCE. It is not an investment. Insurance and investing are two different things. ONLY BUY TERM LIFE INSURANCE. You pay a set amount annually. I pay $215 each year for a $250K policy. If I die within the 20 year period that I'm making payments, my wife gets $250K. If I live, then I get nothing. That's fine with me!

[@josephmartinez8166]

I have a universal policy and Ramsey makes me want to get rid of it.

[@LeviSky7]

Thank you Dave for teaching me better

[@DhazenD]

I love how John takes notes when Dave talks

[@Oh_You_Know_]

The opportunity cost of giving that company that money for 30 years instead of investing it yourself would make you sick and cry!

[@awakentotruthmichaelsmith4698]

That’s not really the point. If you have a good Universal life policy invested in the index(indexed universal life) then you will end up with more cash value than you put into it, and the death benefit will pay even if you die at 95. If you bought the policy and died 2-3 years later then your family would have a tremendous financial deal even though it would not have built much cash value

[@awakentotruthmichaelsmith4698]

@@dakotadak100 😂😂

[@admiralmurat2777]

​​@@awakentotruthmichaelsmith4698WOW that's AmAzInnnnnnnn 😂😂😂 Still trying to sell some crap eh

[@awakentotruthmichaelsmith4698]

@@admiralmurat2777 no I don’t sell IULs

[@thomasscialla1115]

She's paying $40 a month for a policy. Why would you ever cancel a $40 a month policy? She won't be able to get a term policy for less than $40 a month at her age, if she even qualifies health wise.

[@AshleyLooney333]

A life policy is meant for insurance for your life. Not for financial gain. Of course the chances of you living and paying more into the policy outweigh the chances of you dying and the company paying more than you did. Insurance should not be viewed as an investment. All insurance is a gamble..

[@astroman30]

Insurance should be looked at as a Risk Management purchase, only.

[@matthewmchenry9331]

Its like leveraging debt, when even the IRS feels sorry for you and doesn't tax your holdings, you know you are getting hosed.

[@spaceghost0813]

I didn't realize Utica, NY was part of Minnesota.

[@tonyisme4934]

If I outlive a term policy, and have a medical condition I risk being un-insurable for a new policy at the end of the term. 95% or more outlive their term policy, or cancel before the end of the term. I have a whole life policy to be sure my adult sons & daughters get something from me upon my demise. A illness may cripple me and rob me financially but the proceeds of life policy must go to my beneficiaries and not to a creditor where I could have debt

[@astroman30]

Nah....the real reason you like this garbage is because you sell it.

[@thepleasants2795]

If you outlive a 35 yr term policy and still have to rely on life insurance, that means you didn't take advantage of investing. Which goes hand and hand with term life and invest.

[@narb9480]

If the loan is bigger than the cash value and dividend, then there can’t be capital gains tax. The surrender value would have to go towards the loan first

[@mikekeenanphd]

I didn't quite understand that. Let's say that before she cashed out, she returned the loan money. The cash out would be the 15k plus the 4k dividends plus the 5k value. Since she put in 15k total over the years, she needs to pay capital gains on the 5k value doesn't she? I don't think the value of the loan has anything to do with the capital gains that she owes.

[@narb9480]

@@mikekeenanphd when you cash out, whatever cash value and dividends you have accumulated have to pay off whatever loan balance there is on the policy. So if her loan balance was larger than her cash value and dividends then there wouldn’t be a return

[@mikekeenanphd]

@@narb9480 Her loan value is 9k less than her cash value and dividends. Dave specifically asked her if she has subtracted the loan from the cash value and she said yes.

[@narb9480]

@@mikekeenanphd oh I’m sorry I must have missed that! But either way she put more into the policy than she is getting back, which is not taxable gains

[@narb9480]

@@saulgoodman2018 when you cash out, you do not get the death benefit value of the policy. Just cash value and dividends.

[@gideondavid30]

Ramsey needs to debate an expert on home life insurance on neutral territory so he can't cut off or hsnh up on him. He is so convinced of their uselessness.

[@reidbalzer9514]

When your life insurance company invests outside of just the "policy holders" then the extra profits are paid out in dividends that exceed what the policy holders have paid in. Dave you need to educate yourself a bit better in life insurance

[@astroman30]

IRS clearly states that a dividend is a REFUND from a deliberate overcharge. You get some of your money back....yippee.

[@reidbalzer9514]

@@astroman30 And if you take all the cash value out and laps the policy you absolutely get taxed on returns above what was paid in for premiums. So you are wrong you get all of your money plus much more.

[@astroman30]

@@reidbalzer9514 Depebds when you take it out. Keep in mind, you get little to nothing of CV in the first 5 years of the policy. After that period, the average is about 1.5% growth. That’s way less than the rate of inflation. Once you hit the “surrender stage” of the policy, you can take your money out minus the 10% “fee” they charge. If you leave it in longer, you might make a measly profit…but very little compared to a ROTH or 401k. Thus, I wouldn’t be worried about capital gains tax on trash value insurance. Again, the interest you pay goes directly to the LI company. I hope you did your read-up on that subject, you truly embarrass yourself.

[@ismaelrod5711]

So instead of getting the life insurance would it be best just put the money I would have pay for the insurance into a saving account.?

[@zaiah33]

Dave highly recommends having life insurance. Just not Whole Life Insurance

[@eemr8439]

But wouldn't the dividends from the life insurance reduce her basis?

[@kaohsiung99]

Nobody cares. Buy term life insurance.

[@scoonie9966]

Errrr...whoever is promoting whole life insurance as an investment is scamming you. Why would you take a loan on an insurance policy? An insurance policy, term, universal, whole life whatever, is for your dependents in case you die. If you’re thinking it’s used as an investment vehicle for your retirement, you are being mislead. Insurance is for dependents, not for yourself u less you’re getting health, illness etc. 🤦‍♂️

[@reidbalzer9514]

You clearly do not understand whole life insurance. Do some research, I had the same mentality until I educated myself on it. Its a great SAFE vehicle for cash you can and SHOULD use while you are alive.

[@BigChuck525]

I started to question the "math nerd"s math until he corrected himself at the end.

[@gc4697]

I didn't hear how much the policy's face value is. 40 dollars per month for life insurance is probably a deal at her age, even for a very small amount.

[@famousamos1]

Yeah she never said what the death benefit was and Dave giving sound advice didn’t even ask because he thinks all Whole Life polices are garbage. Smh

[@brockb3692]

But the policy was purchased 30 years ago. $40 per month isn't a deal for a 30-year-old, especially 30 years ago when inflation was lower. That $40 per month in 1990 would be the equivalent of $80 in 2021 dollars. $80 is a total rip-off for life insurance.

[@channell11]

40 bucks doesn't buy much in the world of whole life insurance. The rip-off comes from the fact that she's been paying it for 30 years.

[@radiospank]

If I have whole life should I cancel now?

[@radiospank]

@Dillon Smith what if I have term already?

[@Ojisan642]

@@radiospank if you have term already, then what is the whole life policy for?

[@bryantdevault6014]

@radiospank This guy hates whole life so much he forgot how to do simple math. if her annual premium was $500 for 30 yrs that’s only 15k. She still has another 10k available after her 15k loan. Seems to me there would be a capital gains tax on the remaining 10k.. oh and btw dividends can be taxed if she allowed them to be invested by the insurance company and they earned interest.. Don’t listen to this guy when it comes to whole life.He is sponsored by term life companies hence his distinct bias anytime whole life is mentioned

[@radiospank]

@@Ojisan642 double coverage

[@brockb3692]

@@bryantdevault6014 So that $15k she spent on premiums over 30 years would be worth hundreds of thousands of dollars had she bought term life insurance at less than half the price and invested the difference in decent retirement mutual funds. Ouch. That's a huge opportunity loss for her, and this shows why whole life policies are bad. In terms of taxes, the $10k cash value she has above her loan won't be taxable because that is less than her $15k cost basis. Whole life dividends are not considered as "dividends" by the IRS and are not subject to capital gains. The interest earned may be subject to taxes, but again, only once that interest is above her cost basis. The interest rates on these policies are pathetic, so it's very likely the interest earnings will also be below her cost basis. The headline here is that she overspent on whole life insurance to receive piddly returns. She would have spent half that amount in term life insurance premiums and would have far, far more cash on hand with the difference invested in mutual funds. Insurance and investments are different, have different purposes, and should not be conflated. Insurance is NOT an investment. It's INSURANCE to protect you against risks so that you can sleep at night.

[@stormtrooper3381]

I have a Index tied whole life policy with a min .25% rate and cash value 75k in it with a 750k death benefit. Shiiiiit should I take the max loan and ditch it ? 🤦‍♂️

[@astroman30]

You have an IUL?

[@antsant89]

I am a single 32 year old male. I have basic life insurance through my employer for $72k and supplemental life insurance for $210k for $2.47 out of my paycheck which i could increase at anytime. Do I even need term for whole life insurance? And would it be a good idea to pay into whole life insurance and then cut the policy for the cash value when it builds up to a significant amount since I still have insurnace through my employer?

[@ReginaMDoby]

You should own your life insurance policy outside of your job. If your insurance is only threw your job, you may not own it, may not be portable (meaning if you leave your job it stays put) and if you're not on active payroll when you die, that policy may not pay your beneficiaries. You're still young and may change jobs a few more times, or the company can decide to drop benefits.

[@TRICKY_98]

better than i deserve as always with great advice as always 😃

[@Joelthelobo]

Banks Life Insurance and LAUSD own the sky rise in Los Angeles

[@awakentotruthmichaelsmith4698]

It’s is not the return of a deliberate overcharge. It is a reduction in premium because the general account has performed better than needed

[@astroman30]

"Overpayment" is the term the IRS uses describing dividends from whole life insurance.

[@awakentotruthmichaelsmith4698]

@@astroman30 yes that’s how they structure it as non taxable

[@astroman30]

@@awakentotruthmichaelsmith4698 Yipppeee....I get my money back without paying any taxes.

[@astroman30]

@@dakotadak100 Wrong, again.

[@evalina98000]

Ho! You'd have been mo bettah putting money in a fruit jar 🤪

[@jeffdorris5321]

Nice work 🌠🎇🎆

[@robmartin217]

Caller might want to hear Ed Slott,CPA

[@patty109109]

$40/mo invested since 1992 = $83k. Instead she got about $25k out of the deal.

[@j-dom]

Confused as to how you got 83K lol....... 40 x 12 = 480 480 x 29 ( years ) = 13,920

[@stevee8318]

​@@j-dom if she had invested $40/month in an index fund every month starting in 1992, she'd have about 83k depending on the specific fund and start/end points.

[@samolson5322]

@@stevee8318 it’s not an investment decision. It’s transferring risk. Not a fair comparison.

[@-Frost--]

You aren't considering taxes or losses. No taxes or losses in whole life. You are assuming gains year after year on other investments and no tax consequences.

[@Fred2-123]

@@j-dom Never heard of compound interest, have you?

[@FreeAgent797]

I cant believe this s**t is legal. Wow!!!!!

[@robmartin217]

$40.00," hundreds of thousand's dollars difference"...

[@datcatsavedme7071]

I is don’t know what a dividend is

[@kaohsiung99]

Ignore all of that stupid discussion. I'm surprised that Dave even knew or cared about the details. ONLY BUY TERM LIFE INSURANCE. It is cheap for most people.

[@Ragon_Reel]

Dividend = “Profit share”

[@pinkdreamer04]

What about universal life insurance?

[@astroman30]

garbage

[@pinkdreamer04]

Thanks @astroman30 & @DanielB

[@robmartin217]

Trotsky Bolsheviks too?

[@netm203]

I have term insurance and always thought I should have gotten whole life

[@jimroscovius]

Whole life is awful!!

[@ObscureManifesto]

@@jimroscovius depends on your situation but 90% of the time I'd say you are right.

[@jimroscovius]

@@ObscureManifesto I can't think of any situation in which whole life is a good idea. Paying more and getting less is never good.

[@bryantdevault6014]

This guy hates whole life so much he forgot how to do simple math. if her annual premium was $500 for 30 yrs that’s only 15k. She still has another 10k available after her 15k loan. Seems to me there would be a capital gains tax on the remaining 10k.. oh and btw dividends can be taxed if she allowed them to be invested by the insurance company and they earned interest.. Don’t listen to this guy when it comes to whole life.He is sponsored by term life companies hence his distinct bias anytime whole life is mentioned

[@channell11]

@@jimroscovius Typically the only time it has any benefits is for certain high net worth individuals to take advantage of the tax situation in order to pass down inheritance.

[@nifralo2752]

Wonder if they know Super intendent Chalmers

[@Shadowwind4]

If anybody needs life insurance let me know! We offer term life!!

[@pic376]

I guess you didn't listen to Dave's response.

[@Shadowwind4]

@@pic376 why do you say that? Dave likes term!

[@bryantdevault6014]

This guy hates whole life so much he forgot how to do simple math. if her annual premium was $500 for 30 yrs that’s only 15k. She still has another 10k available after her 15k loan. Seems to me there would be a capital gains tax on the remaining 10k.. oh and btw dividends can be taxed if she allowed them to be invested by the insurance company and they earned interest.. Don’t listen to this guy when it comes to whole life.He is sponsored by term life companies hence his distinct bias anytime whole life is mentioned

[@bryantdevault6014]

@@justinacase2623 I just looked at your account history and you only comment on Dave Ramsey posts to people who disagree with him and have valid points.... Damage control (Just in case) someone makes Dave look like he has no clue to what he’s talking about

[@jonbevans]

Regardless of the numbers, his point is the insurance is a rip off. Let me guess....you are an insurance salesman?

[@bryantdevault6014]

@@jonbevans yeah regardless if his logic is completely flawed Dave is still right 😆 the Dave Ramsey community of sheep is something special

[@michaelh5055]

We love being special! Debt free, investing, and no whole life policies.... Life is so rough 😁😁😁

[@astroman30]

Liar.

[@MastrSmoke]

The only insurance i have is car insurance & that’s cause it’s mandatory to have if i want to drive my car.

[@tomasviktor4393]

Well, term life is good if you have kids.

[@riceball777]

health insurance is also mandatory

[@tomasviktor4393]

I don’t think so Benton. At least it’s not going to get us a fine for not having it. Not yet. But that’s not germain to the debate at hand. Whole life sucks compared to term life.

[@MastrSmoke]

@@riceball777 not for me i had health insurance in my early 20s & I wasted so much money back then & 10+ years later I haven’t been to the hospital for anything & i feel great. Great diet & exercise plus an occasional snack helps.

[@jimroscovius]

@@MastrSmoke I hope you don't break a leg or get a disease.

[@nickmjtanlisa]

It's called life insurance not life investment, if you pay home insurance for 20 years and change your insurance provider, they wont pay you the cash value of your premium installments either lol. This is very misleading, he never mentions that it is NOT an investment and neither is your car insurance plan.

[@astroman30]

There is no "cash value" on a home owner's policy. Where did you come up with that nonsense?

[@timmartin723]

If she put that money in an IRA since 92 she would have a lot of money.

[@famousamos1]

Lol it’s not that much money if she paid $40/m for 29yrs that is a total of $13,920 principal. If you calculate a time value of money at 8%/yr compounded monthly she would have $55,790.06. She took out $15k loan from her cash value at some point. If she never took out a loan against the policy she would have a lot more than $5,300 cash value. She still has a death benefit of significance for only $40/m.

[@kaohsiung99]

@@famousamos1 You are missing the point. Once she saw it growing (years ago), she could have put more into it all along--not just $40.

[@robmartin217]

Fruit loop jar too

[@bradleymaravalli2851]

If there were capital gains, wouldn't the life insurance company have to send the caller a 1099-MISC?

[@astroman30]

No capital gains unless you pull all your cash value out which would be very little.

[@enzoferrari88]

Does that make sense... yeaaaah (no clue 😟)

[@ryanhumor]

Riiight! 💯😂😂

[@charlesjackson1700]

Suzie Orman always said to stay away from Whole Life Policies ...

[@kaohsiung99]

And Dave Ramsey and Clark Howard.

[@HistoryBuff1973]

I hate her guts, you ever see the video where she tells a woman to hold off divorcing her husband for two years so he will be forced to pay alimony for rest of her life, and says after the divorce NOT to get married again so that she keeps getting monthly alimony payments and half of his life insurance. However, i do agree whole policies stink.

[@charlesjackson1700]

@@HistoryBuff1973 She can be a radical lesbian at times .. LOL

[@robmartin217]

So, shell game,scam like madoff,epstein?

[@cogentdesign]

Dave, were you bored that first minute? lol

[@epiphoney2]

I like the different Ramsey personalities, but some calls like this one only Dave can answer. The guy just has decades of insight into the financial nitty gritty.

[@tristiangroves5591]

Hello dave

[@BunkMasterFlex77]

Hello...Newman!

[@BunkMasterFlex77]

@@justinacase2623 I was in the pool!!!

[@mattcrouch9348]

She has paid $13,440 in premiums and said cash value is about $21k. Looks like Dave's math is wrong. There are several thousand in gains here, apart from the dividends.

[@awakentotruthmichaelsmith4698]

Correct, he acts like he knows everything about life insurance, he really knows very little

[@joelcamacho1106]

@@awakentotruthmichaelsmith4698 yeah so do many people here.

[@joshkane534]

@@awakentotruthmichaelsmith4698 wrong...

[@awakentotruthmichaelsmith4698]

@@joshkane534 about what

[@joshkane534]

@@awakentotruthmichaelsmith4698 the fact you claim Ramsey knows very little regarding life insurance... there's not much to know as it's binary. It's either a good or bad investment, and whole life is horrible as an investment

[@aadilenenene97]

I don’t understand investing or Roth IRAs help 😩

[@samuelmcgurk2065]

Will happily help!

[@BMTHD]

Oh oh oh Don't forget to smash the like button haha

[@aadilenenene97]

@@samuelmcgurk2065 do you recommend any books or even KZbin videos I should watch to learn?

[@ryanskinner8789]

Its not a capital gain, its considered ordinary income, as life insurance isn't an investment. I feel Dave needs to stick to the basics of debt reduction and savings, stay out of the deep end of the financial pool. IMO, lots of generic statements that lack basis.

[@astroman30]

It is a capital gain if you pull out the cash value and it's gained interest through the years.

[@reidbalzer9514]

It's embarrassing how confident you seem when you are soooo wrong about what a policy loan is..... You take a loan out against your cash value so the cash continues to grow and you pay ZERO in taxes. In order to accomplish this the insurance company must by law charge an interest rate. But that added interest is dumped back into your cash value.

[@astroman30]

1. The cash value grows at 1.5% 2. You borrow your own money and pay the insurance company 8% 3. What a stupid way to borrow money 4. Any loan has "zero taxes." I can borrow against my credit card at "zero taxes." 5. There is no "law" stating an insurance company has to charge an interest rate

[@reidbalzer9514]

@@astroman30 Wrong, my cash value grows at 3.3 %. 2 . wrong again, you borrow against the cash value so it continues to grow and the interest rate is around 5%. That interest rate is not paying the insurance company its being added to the cash value. You are paying yourself the interest. 3. Its a brilliant way to borrow money. 4. Yes "loans" have zero taxes but what other loan does the interest paid go back to you? 5. In order for this to be all tax free they must by law charge interest

[@astroman30]

@@reidbalzer9514 1. Your CV grows at 3.3% (below inflation) 2. You borrow against the CV at 5% 3. (Do the math of step 1 and 2) 4. Does that really sound like a good deal? 5. Give me your money and I'll offer you the same deal. 6. The interest you pay MOST CERTAINLY goes to the LI company. Look it up. 7. Google is your friend 8. Somebody scammed you 9. You're not bright enough to understand 10. Stop getting on here and giving bad/wrong advice.

[@thepleasants2795]

@@reidbalzer9514 so you're happy about getting 3.3-5% interest? When you can get cheaper Term life and invest the difference into a mutual fund at 8-12% interest? Money you don't have to borrow because it's yours. And money that your family WILL get when you die. Unlike the money in the whole life vehicle that goes to the insurance company. make it make sense.

[@reidbalzer9514]

@@thepleasants2795 This is where the misunderstanding lives. Whole life is NOT an investment vehicle! Its a place to keep safe liquid cash the keeps up with inflation. Its another tool to have when say the stock market tanks in retirement. Instead of drawing from a de-valued nest egg you can switch to your cash reserves and wait for a recovery. Again cash value life insurance is NOT an investment! Its simply a storage vehicle.

[@OroborusFMA]

Whole life insurance was the norm, just as pensions were the norm, before the greed of capitalism got in the way.

[@astroman30]

Both pensions and trash value insurance are garbage.

[@StevenAlvarez]

ive always known life insurance is a scam, thank you dave

[@firecraig]

🤦‍♂️false. 2/3 of all US banks have millions/billions in whole life. Wonder why?

[@HangNguyen-ih8rf]

You’re buying a peace of mind and at the least it’s a type of “saving.” Definitely not an investment.

[@seanohara5754]

You can buy peace of mind with term life and save separately and end up with a lot more at the end of it.

[@cp90_]

savings accounts are what .25% vs life insurance at 4-6%

[@lukelewis9165]

@@seanohara5754at her age buying a term policy not only would be a terrible idea, it would actually be harmful. If she is only paying $40 a month into a policy that WILL pay face amount when she passes (assuming she wants her family to get something from her) then this is actually a good deal. Never again will she be able to get a guaranteed death benefit for $40 a month at her age. Insurance isn’t an investment it’s insurance it’s not complicated

[@stephenshapiro8404]

Hmm. It is better not to die.

[@prkzoomin6994]

You should never regret anything in Life, if it's good, it's wonderful, if it’s bad, it’s experience.

[@andrewogle8483]

Tax will be ordinary income, not capital gains.

[@robmartin217]

Shell game,Scam bankrupt fried

[@Paul-jp8zz]

This is just another example of how little Ramsey actually knows about whole life insurance.

[@astroman30]

Nah.....he's spot on.

[@ricardobarnett7716]

Dave Ramsey maybe the worst financial advisor in the world. The lady is 60 years old with only $10k in savings. She use the policy to access a $15k loan an he is tell her whole life is garbage???. Whole life shouldn't be the only thing she has in her portfolio, she should have diversified with stocks and retirement investments but that whole life is literally holding up her life. If she dies now without a life insurance the savings would be wiped out leaving her husband completely broke in his senior years. Life insurance is not a financial tool to get you rich by itself, its a financial tool that helps you build asset and get access to capital that will make you rich. Dave is advising his supports to invest in IRA and these low return assets for 30-40 years and he is doing businesses and KZbin that increase cashflow much faster. STOP LEADING THE PEOPLE ASTRAY

[@astroman30]

Liar

[@onyx9857]

EARN YOUR LEISURE

[@idreeselane9542]

Tell em again.. compounding interest is where I’m starting

[@fdadrtrttewrt]

I don't understand how whole life is legal. Its the cynical preying on the confused.

[@firecraig]

If you believe the lies ole Dave tells about whole life, it’s no wonder you are confused.

[@yourippedmyshirt1269]

7:06

[@greencase]

Cannot compute.

[@TheRachag]

401k is the same kind of thing. You give money for a financial institution to invest🤷🏻‍♀️

[@MiracleMortgages]

And not to mention in a 401k, YOU reap the dividends, not the investment banker. In a whole life policy, the insurance company invests your money, and keeps the gains.

[@johnmirbach2338]

😁👌👍✌🖖😎

[@Shadowwind4]

I’m a life insurance agent! Dave is wrong about whole life policies!

[@lifted0422]

How so

[@robmartin217]

Rothschild loves you

[@tofupower64]

Dave seemed to be in a bad mood. :((

[@briandoran8260]

Mumbo jumbo I will sum it up , Ramsey hates whole life

[@channell11]

With good reason. With few exceptions, it's a poor financial product for most people and situations.

[@lukewilliamsyt]

Guys my business failed at just 14 years old and I made a KZbin video explaining it😞

[@dabd8175]

Dave is bald af

[@astroman30]

You like him?

[@CristianLL]

Sounds like Dave doesn’t know what he’s talking about. Just giving advise based on what he thinks is going on.

[@motoryzen]

Then you need a hearing aid that involves simple math. It's not rocket science.

[@CristianLL]

@@motoryzen hahah what ? The man is just rambling without knowing the callers specific situation. The man cuts them off mid sentence. Yes it’s his show, but that just shows he doesn’t care about the details. He’s just going to spew his rants. God bless 🥲

[@CristianLL]

@@motoryzen don’t get me wrong. He’s interesting, but definitely funny to watch and listen to. A KZbin/financial version of DR Phil in my mind. I love watching this while drinking wine and ending my day. Good stress reliever Again god bless 🥲

[@kaohsiung99]

Buy TERM life insurance. *TERM* LIFE INSURANCE

[@cjmor6590]

This could’ve been googled...

[@jayceerenegado8038]

Follow Denzel Rodriguez and WealthNation on KZbin to understand whole life policy. Dave trippin’

[@tomasviktor4393]

Why? Just consider the objective facts. Dave’s not trippin’. If whole life was better Dave would say so. I have no interest in this topic other than facts. He just explained and demonstrated why whole life sucks.

[@insideoutsideupsidedown2218]

Tomas, Renegado is a whole life insurance salesman....

[@theseeker4700]

@@insideoutsideupsidedown2218 lol i thought so too

[@tomasviktor4393]

I could have guessed that Denzel was a whole like salesman. Tell him to do his clients a solid and sell them term. Use the extra money to buy stocks.

[@channell11]

Whole life is a bad investment vehicle for people who are irresponsible with their money, and a way for wealthy individuals to avoid taxes when passing down money. Depending on which group you fall into, it's either a poor financial product or somewhat useful.

[@antdel2087]

WOW! $500 a month for 30 years if I heard correctly. She would be a millionaire if she bought a quality mutual fund.

[@Lolatyou332]

It's 500$ a year, not month. 40$ a month.

[@mikekeenanphd]

@@Lolatyou332 If we assume a 10% average mutual fund over 30 years, she would have 90k total in the account at this time. Instead of 24k. Her gain is about a 3% increase. A little over inflation.

[@stevenporter863]

It was $40 a month (about $500 a year).

[@Soljarag5]

Rewatch

[@famousamos1]

@@mikekeenanphd she took $15k loan out at some point. If she didn’t take the loan she’d have more cash value. So even if she invested the $40/m at some point she would taken a $15k withdrawal and she wouldn’t have $90k in a stock mutual fund. Also she wouldn’t of had life insurance for her kids or spouse of $50k-100k if she died early.