Why Is Term Insurance Better Than Whole Life Insurance?

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[@barttfisher]

Thinking about my retirement scares me.I apologize to everyone who is retired and filing social security after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.

[@FinnBraylon]

Indeed, It has always been more difficult to understand how to build your money after retirement and even more so right now with the inflation. You can experience a completely varietied market passively by employing a successful portfolio-advisor.

[@JosephineKenney]

Even with no skills, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April last year due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I've made over $250k since then

[@PennyBergeron-os4ch]

Mind if I ask you to recommend this particular manager?

[@JosephineKenney]

“SONYA LEE MITCHELL” is the licensed consultant I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@PennyBergeron-os4ch]

I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

[@theawesomer8587]

I used to work in a call center for an insurance company. Day in and day out, we get phone calls saying, my father/mother paid thousands a year for this policy for decades and now they die and we only got 20 grand??? Hated that job, worse than Walmart.

[@ittakesavillage5461]

Hidden Secret Healing, LLC that would be a whole life policy

[@michaelwoods4495]

@@Hollablackgirl93 In that case, you'd want decreasing term. If you're protecting a spouse, you might a level benefit with an inflation rider.

[@elcomoso3410]

Those people don't know what's on the contract cause they are just beneficiaries acting like they know everything about it.

[@tammieprintz3975]

How do I get an Life insurance company to pay me, that I have a had a waiver of premium- due to disability, on it. I took this Policy out in 1998, and now it is 2020. I have let them know that I am now totally and permanently disabled. They have sent a letter to me saying I don’t qualify for this waiver of premium; even though I had not missed a premium payment. My policy is for $180,000. I can no longer easily pay the high premiums. I do not want to surrender it. As I have paid a lot into it. And I still have a mortgage and I am not able to continue to pay the high premiums. The letter they sent me said I had the right to appeal this decision for one year. Which would be another 6 or so months to be able to appeal it. Must I obtain an Attorney to do this appeal? I don’t have the money to hire a good Attorney, but feel that if it is my only chance to make this company pay my premiums, only until I am 70; I am 56 years old now, it may be worth it to borrow the money to appeal if I have a fighting chance to win the Appeal. Any suggestions on what I can do? I appreciate any input! Tammie Printz - Company is out of Minnesota- was called Minnesota Life; now goes by Securian.

[@Evexc]

@@tammieprintz3975 who you have it with

[@baxtermaxtor]

7:17 "I've never been poor, only broke. Being poor is a frame of mind. Being broke is only a temporary situation." - Mike Todd

[@katdaddy469]

Being broke is not a bad thing. It allows change. It helps you see past material distractions and exposes meaningful goals that otherwise one might never see in life.

[@Golf_With_Gavin]

baxtermaxtor yes!

[@laloeastside9669]

I thought Dave Chapelle said that...

[@panamadzo]

Term is no doubt better but what happens after it ends after 20-30 yrs.And you still need insurance and because of increased age you have health issues ?

[@flavf2494]

Deezo Brown The whole point is you’re supposed to invest and manage your finances astutely during that 20-30 year period so that you won’t need insurance down the road.

[@lgtvstick368]

I worked for New York Life in Tampa Bay, my job consisted on calling back beneficiaries to burst them the news that after paying to us premiums for possibly multiple decades, NYL's underwriters came to discover after the investigation that the insured had a health condition that was not disclosed at the time of signing the policy, and even though the commercial on tv that lured them to by the policy indicated that not medical exam was required, an undisclosed health condition wold be sufficient for any insurance company not to have to pay a single penny, I hated my job and quit because I could not longer be an accomplice on ripping people off their money! Life insurance companies are worse than car insurance!

[@astroman30]

Amen!!!

[@petej7002]

Wow thats horrible. I tip my hat off too you.

[@relaxingwithnature2201]

Bingo. That is what i am talking about. They are money making fraud

[@guitarcountry1]

@Sherlock’s Redbeard Life Insurance is important when someone depends on your income. Most important if you have children. But best to buy term life insurance and at the same time invest in stock mutual funds. I started with $166 a month.

[@ricardoalcides7184]

@@guitarcountry1, you’re telling that because you don’t even know how to have a custom while life with max funding, PUA, living benefits, chronic care, accelerated benefits riders. It works almost same as a mutual fund but your money is secured.

[@jkellyid]

Never could figure insurance. Dave's help in figuring this out has been financially revelatory.

[@lee17graham]

I have learned more in this video than the past 10 years watching/listening to others...Thank you!

[@ikrob]

Whole Life Insurance has left the chat.

[@matthewmcguigan552]

Stick to used car salesman Dave’a advice and ultimately still blow tens of thousands on a cheap term policy you’ll statistically outlive and have nothing to show for in the end.

[@Roslyn111]

@@matthewmcguigan552 Agreed. It's funny how Dave never mentions that only about 3% of term insurance ever pays out. Companies who sell term are making a statistical bet that the person will outlive the policy thus never having to pay a check to the beneficiary.

[@astroman30]

@@Roslyn111 Yet, it's still better than Whole Life that rips you off by keeping the cash value.

[@kawi4ev]

@@astroman30 what are you talking about? There is certainly a need for whole life for some people. What is the most tax efficient way to leverage your money? How do you keep your estate most intact?(inheritance tax, probate fees..) this guy says that there is NO need for whole life ever. Which is completely wrong. This guy gives terrible investment advice

[@astroman30]

@@kawi4ev You're just a lying salesman who refuses to accept the truth: Whole Life insurance is (at least) 20 times more expensive than term in premiums. Oh sure, you're promised permanent insurance and a glowing cash value. Yet, the only way to get money out of CV is to borrow against it or cancel your policy? The average ROR on your precious cash value (after fees/taxes) is 1.5% Complete garbage.

[@iliganoasmith5879]

I love the truth and I really appreciate you! Honesty to people life is the best policy! You right who cares wat they say about you! Atleast you are helping us poor, middle class people! Thanks for your honesty! 🙏🏼🕊️❤️

[@tafaofamily4819]

Thank you Dave! Much appreciated sir.

[@PaxtonIsGoated]

Thanks for speaking the truth, not only about the life insurance, but also the car lease and credit card!

[@Lionheart_He-Man]

Good thing I figured this out today 9/22/23 after our second annual payment for my kids, I’m getting term life insurance and canceling this whole life immediately, this is a game changer. It will save me thousands in the long run. 😧😧😧 Once again, thanks, Uncle Dave!

[@DeVaunToon]

This was a sign.. I literally had a meeting with someone about them tryna get me and my wife whole life insurance .... thanks Dave!

[@georgekramer2496]

Me, too. This guy had me convinced and then I see this.

[@samiralouis-jeune5216]

Are you still looking by any chance? If so my office is doing free financial game-plans for families for the rest of the month through zoom. Would love for us to talk.

[@MrScarletspider99]

Honestly, if your young and healthy, whole life and term is a great way to go. You will out live term policies. And the more you renew, the more expensive it becomes. Whole life is level and will never go up in cost. My sister got a $100,000 whole life police for $67 a month. And thats honestly outstanding. I’m an agent. And I’ve seen people from 60 and up that only qualify for $10,000 at double the price. And after a certain period, you can borrow up to 75% of your payout to use as you want. They will only pay out the 25%. I always tell my clients “ if it doesn’t make sense, don’t buy what I’m selling. I’m here to help. Not harm. “. I’ve studied and passed my tests. Dave is a very smart man. But, I disagree with him on life insurance. Term is temporary.

[@EshhhaBenjamite]

@@MrScarletspider99 I agree with you💯

[@livemolidre]

@@EshhhaBenjamite I don't

[@casandralove6316]

I love the honesty and how educated he is. My coach educates and trains us daily and I am so grateful I work for a company that is truly for the ppl. Buy term and invest the difference! That's how you and your family WIN🎉❤😊

[@Mystii_CD]

[@IAmFerg]

Look up IUL and you’ll never do that term and invest the different ever again 😅🤷‍♂️

[@sethhiggins7783]

guess he wants you to invest in stock market. The most risky of all investments. People be diverse in your approach.

[@TimeisUp22]

@@IAmFergI keep hearing about IUL but not really understanding it. Is IUL just good for investing or people who are into real estate? Or is it helpful for is a family member die, it will cover funeral costs plus give each family member a 10k check?

[@IAmFerg]

@@TimeisUp22 IUL can be used for both family and investments because in an IUL your money is always growing with you having full access tax free on top of the insurance. What makes IUL’s suck is Insurance agents can be greedy and fund them INCORRECTLY giving the agent more commission… that’s why people have mixed emotions on IULs but a IUL funded correctly is 100% best product on the market.

[@rayankinalski9796]

Thanks to your advice I got rid off a whole life insurance that was squeezing my finances... Thanks a lot

[@astroman30]

Awesome!!

[@LuisluigiTexas]

Common. A credit card is not good ?? Give me a brake. I got 0% APR credit cards that I play with and because I have great credit. No annual fees. And if it wasn’t for those I couldn’t have grown my business. Never paid a penny in interest. The cards are not a problem. The problem are uneducated or irresponsible Spenders.

[@agravy7657]

Break*

[@astroman30]

@@agravy7657 I laughed really hard when I read your response.

[@rbtheballer]

😂😂😂

[@JohnPaul-ol5zl]

Agree. What I notice is that Ramsey and others do not make clear is that Most individuals should not have credit cards as they are not responsible financially and probably in other matters (personal, relationships, etc.). Broad- brushing is usually not accurate.

[@davidt7431]

I understand but first off 0% APR(after their promo period)? Be real. I have a 800 credit score not even I have 0% Apr credit cards. But anyways this information is for the average Joe. You have to be extremely disciplined to play with credit cards and win at the end. I myself stopped using cards only debit bc it just simplifies my life.And is very easy to disconnect yourself from real money. And just one day swipe on a big purchase. Just for some points.

[@lasallemom1]

My argument for keeping or buying whole life for a child - the earliest you can buy it the better due to low payments. They can be $10-$20/month and that is the set price. If you are blessed with having a child who reachs their 20s or gets married you sign it over to them and most likely there are no payments that are needed. If in the time between when they could be insured and adulthood they found out about having cancer, deadly allergies, epilepsy, or they smoke like a chimney or skydive they at least have something. I really wanted to buy whole life for our children but didn't. We found out our youngest has a bad but allergy and possibly sports asthma making things possibly harder in the future for getting a good deal on term.

[@dennisreynolds6915]

I sell life insurance and I only sell Term life. The only time i sell whole life is if ive exhausted all efforts in swaying them to term. in 2019 I sold 90% term and 10% whole.

[@andrewfiore8926]

@@dakotadak100 it’s not

[@agravy7657]

@@dakotadak100 andrew fiore sells whole LOL honestly idk what is true

[@DorrisArslan-fk8oe]

Wow, this video was really informative! 😍 I'm so glad I now know the benefits of term insurance. Thank you so much for explaining everything so clearly! 🙏

[@ministercarithers]

Thanks, Dave for this video I have been taking to the cleaners with these insurance scammers. I will not never get a whole life policy again. Thanks a million, Dave.

[@mylifemyjourney1]

100% agree about credit card company being a scam 20% interest to Capital one, I experienced it and never again will have it. If I don't have cash to pay for it then I don't need it.

[@americanhorsepirate7077]

Using the card as if it’s a debt card means you never carry a balance and always get paid to use it. It’s about the action you take

[@lucillemargot5175]

Thanks for all the detailed information you have provided in this video. I like your way of explaining every point. Keep sharing such great videos in the future also.

[@michaelmontalvo8603]

Too bad the advice he provided is completely wrong

[@itsyaboigod7794]

Dave only 1% of term insurance is paid out, the problem here is that most people don't invest properly or at all; so when they need the insurance the most they don't qualify for a new policy or the term policy has run out. People go into serious debt when they get sick or have an illness, in permanent policies you have the ability to access accelerated benefits while you're still alive, which can pay for your medical bills and other expenses to keep you out of debt. A 22 year old can pay $200 a month for $500,000 benefit, if the 22 year old paid that for 80 years that would be $192,000 put in with a return of $308,000 with the ability to access the health benefits in time of need. You are trading a smaller number for a bigger one.

[@retiredmanager1098]

Exactly, and I see many very wealthy, educated parents buy 10 pay or 20 pay life. The child could cash out for college, carry the insurance for life. Or in a worst case medical emergency, they could take an accelerated death benefit.

[@Anonyme67]

But you still borrow the money and have to pay interest on it

[@312Freecity]

🗣Bingo!

[@Insight2306]

🎯🎯🎯🎯

[@kbwavy]

@@Anonyme67 In alot of cases this is better than the tax liability you get when cashing out investments

[@Trina.b00]

I'm so glad you made this video. This is all so confusing. Thank you for helping me understand!

[@OfftoShambala]

My nephew got sold one of these... he has no kids and isn’t even 21 yet... his girlfriend called it a savings plan... I told them that these things are highly criticized and suggested she look into why they are bad... she said she looked into it and that the critics said that the plan they went with is one of the better ones but she could not communicate with me why they are critical... so in essence she got sold s bill of goods and does not want to think she made a bad decision... and of course the person who sold this to my nephew is someone from her family so that bit of psychology is working against my nephew

[@caseyhickey6793]

She made a great decision in getting a whole life policy, message me and I will gladly give you the full breakdown as to why this was a good idea.

[@jreavestheleader8255]

@@caseyhickey6793 boss I get universal life insurance is that ok to get I’m 26 years wat u think?

[@michaelmontalvo8603]

Your nephew has a great policy. I am a fiduciary and my daughters have had their own policies since they were 2 and 3 and it’s the best thing that they could have aside from their college accounts.

[@enriqueducassi7614]

@@jreavestheleader8255 Dont't get any life insurance! It is a complete scam! Anyone who tells you to buy life insurance or tries telling you its a good idea does not know. You're 26 you have many more years of working and saving. Invest in something that will build equity and give you a return in the future that YOU have control over. Invest in the S&P 500, strong companies on the stock market, real estate, gold, silver. Buy and hold thats how Warren Buffet became rich, Buy and Hold. Life insurance only benefits the life insurance company and the salesperson who sells it. Make good financial decisions my friend. Cheers.

[@gov7602]

Vultures

[@ASHRIC07]

Thank you sir!

[@sugarwalker89]

Love this guy!!!!

[@teetee614]

Had to listen to this twice, I get it now. Thanks🤗

[@sanguebombjjbama1751]

Your amazing. Thanks for the great guidance.

[@newearth16]

Thanks dave... Love your humanity!!!

[@stefinaweasley1514]

Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.

[@tonybelleo1895]

Thanks for the info.... Sir...

[@eleanorclark245]

Thanks Dave

[@bethanyangel1721]

I worked as a Financial Advisor and I agree that whole life insurance is a rip off.

[@jaydennis1999]

You see that's the thing, you were an FA, not an insurance agent. Only a well trained and educated insurance agent can communicate the benefits of life insurance. Whereas an FA will probably have a bias towards investments, which is fine, and also very different.

[@Andy-wo9bm]

Your FA title didn’t make you immediately educated on how life insurance done right is by far the most superior financial product that was ever invented. I know many former FAs who are LI experts now because they learned how much of a rip-off most financial planning is.

[@Sideler74]

@@jaydennis1999 Insurane agents ie to consumers every day. Folks who sell Cash Value policies are the worst.

[@jaydennis1999]

@@Sideler74 nice baseless claim with no evidence behind it. Good job, keep going!

[@Sideler74]

@@jaydennis1999 tell the truth you snake oil salesman.

[@Ashley-id2cb]

Is there a good company to go to when getting term life insurance?

[@alfredaalfreda4328]

Thanks for your insight

[@GW-df6tf]

Credit card is good only if you can pay off the balance every month, not just pay the min. Payment +over 20% annual interest, which will drag the payments forever.

[@truckerstar5830]

Why would you use a credit card if you already have that money saved in your bank account?

[@SuprEmpth]

@@truckerstar5830 They say for the perks. I’m speaking from hear-say. Not from experience.

[@jonahmcclaine1635]

@@truckerstar5830to build credit and to get the 1% back or points or whatever bonuses your card gives you. Why would you use a credit card if you don’t have the money to pay it right back? Not to mention then you definitely don’t have the money to pay interest

[@mrsmdub259]

I’m pretty new at life insurances. I’ve had term for years. But my kids are now adults. I still have a term, but feel I could put my money elsewhere. Any thoughts on life insurance for older adults (our early 40’s) with no dependents?

[@chrisstaub5880]

Most likely you just don't need it at all anymore. Just keep the current term policy until it expires, then don't renew. The idea is that by the time term insurance becomes too expensive, you should be self-insured through savings/investments.

[@hooks210]

Just leave something for your children after you left this earth.

[@MichaelJohnson-by3vf]

I have a whole life policy. I pay $43/month for 40 years for a $50k policy. So in total I pay about $21k in premiums (unless I die sooner, in which case I'd pay less), and I get at least $50k (I could potentially get more depending on dividends for the policy that aren't guaranteed). So it's not a great investment obviously, but I don't think it's fair to compare it to having a credit card or a payday loan. I mean it does make money instead of being given away to the bank...

[@vinnv226]

If my calculations are correct, this is a 4% return per year. It's not that bad, but I think Dave's point is that there are better investments out there that could be earning you 6-10%. For example, suppose that you switched to a term policy that was $5/month, and invested the difference of $38/month in a fund that earns 7% per year. That fund would have $106,276 at the end of the 40 years. Also, if it's whole life, how do you know it's 40 years? Don't you pay it until you die? I'm no expert at this stuff so take what I say with a grain of salt.

[@stevee8318]

@@vinnv226 That's exactly the reason why whole life is generally a bad deal.

[@juanzapata7701]

Was your policy designed for high cash value?

[@kbwavy]

@@vinnv226 However, you are not calculating management fees, capital gains tax and estate costs after death

[@mikeynoels7210]

@@juanzapata7701cash value is a SCAM that’s part of the point of the video because it’s your “investment gains” that you can’t take out unless you close the account or borrow against it and both hurt or eliminate your death benefit. Moreover the “gains” are shit compared to a mediocre index

[@YoungMoneyHotSpot]

Lol I’m an investment banker who’s taken all the securities exams and I didn’t know this. Thanks!

[@andrewfiore8926]

He’s not informed to be giving people this info in the first place, massively misleading statements made in this video.

[@cbdances4god]

@@andrewfiore8926 I'm not understanding what is misleading? It's called the TRUTH! Suze Orman says the exact same things, and she IS a licensed agent in almost every state! Are you an insurance agent, by any chance? Because you may want to look into what you are being told to sell! Dave speaks the absolute truth, and it's all written in the fineprint of a policy.... Facts don't lie!!!! (Speaking from my own experience!)

[@astroman30]

@@andrewfiore8926 you're a liar.

[@cbdances4god]

😲😲😲 Most bankers (even bank managers!) don't know this, so don't feel bad! From my own personal experience, I know this to be the absolute truth!!! It's very sad how companies take advantage of their clients for a bigger paycheck!

[@EmpressofChrist]

Everyone should learn finances

[@stevenmonroe45]

Just so everyone knows, the examples that have have replied to certain posts are strickly life pay whole life policies. There are also 20 pay whole life policies where you only pay a monthly premium for 20 years which is better than life pay policies.

[@Sideler74]

20 pay means you paid in advance for a BS product. LOL

[@cdb48340]

Thank you for the detailed answer!

[@Big-mike07126]

Thank you Dave

[@user-xf9vq5tf7h]

Wow, this video was really informative! 😍

[@Roslyn111]

The sad part is sitting with a senior citizen who realizes their term is about to expire and now they're too unhealthy & too poor to afford anything with permanent coverage. All those years of paying term insurance but then it drops off & cancels on them. It's heartbreaking.

[@chrisstaub5880]

Then they should have done a better job of saving money before the term ran out.

[@xJayhawkFANx]

Health insurance should not be an investment

[@josephd5715]

I've been in the business for 30 plus years and have never once witnessed the situation you just described RoslynR. Your comment suggests it's a regular occurrence. Nothing could be further from the truth. Mr. Ramsey is correct. Would you like to know what is really sad? Whole life and Universal life are products that have done more harm to our industry than the collateralized debt obligation debacle back in 2008. These policies do however pay huge commissions to insurance agents.

[@astroman30]

@@josephd5715 Brilliantly stated, sir.

[@vincentalcala4128]

@@xJayhawkFANx Who is talking about health insurance? Why should some things not be considered an investment. Any time I can make my money back and receive a benefit along the way is a good idea to me. Where do you draw the line in what should count as an investment? I don't not deal with health insurance, I deal with life insurance. Yet I see health insurance as nothing but an investment. I have health insurance to reduce the cost of any medical expenses that come up. I spend a little now so I will pay less when the time come to actually needing it. To me that's a profitable return. Now with Life insurance it will definitely be profitable for the beneficiaries, the best part is when you can set it up with whole life and become profitable while your still living. Through interest and possible dividend growth you can reach that profitably level sooner.

[@kevinm.8682]

I've sat with people who were A.L. Williams clients back in the 90's. They bought into the "Buy term and invest the difference." Well unfortunately over time they ended up SPENDING the difference. Sometimes it was lack of discipline, sometimes it was a job loss or divorce or something they couldn't have foreseen. So now they're starting over financially but their term is expiring and they've got medical issues that all but make them uninsurable. A permanent policy would have prevented that. Insurance shouldn't be your only investment platform, but you need a policy that will be there when you need it. Permanent insurance will do that.

[@johnd9541]

People always spend the difference......bigger car, bigger tv, nicer restaurants, better vacations, etc. Its just human nature.

[@johnd9541]

Investing the difference saved using term, or even investing all what a whole life policy would cost and foregoing insurance completely, is not going to make anybody financially independent. It might help fund a vacation or two but then what? The best way to financial independence is to get a good education and to move up in your job, or to learn a trade. The fast track to debt is to join an MLM and peddle insurance to friends and family.

[@johnd9541]

While a little man can't get ahead, it serves them no purpose to get further behind by joining a MLM opportunity.

[@Intentionaltia]

I just love Dave Ramsey.

[@kathytripp8617]

Thanks dude!!!

[@georgeczeiszperger7682]

I listened to your audio book on kindle, the total money makeover......changed my life.

[@saovier]

Dave can you please tell us what Insurance company i should look at here in Australia i wish we have a man like you here in Aus after listening to you for a while i find it hard to trust insurance companies anymore.

[@funnytime3764]

Thank you so much.

[@NailBedzNSereneDreamz]

Great motivation!

[@TradingGzwithG]

5:46 man Dave Ramsey hit it right on the nail. “The Car lease, whole life insurance and credit cards keep the middle class in the middle!!”

[@jimferris9447]

GBACK2THAF - Warren Buffett has the most whole life insurance of anyone in the US.

[@lovefunkrockmusic]

Warren Buffet has a credit card. It’s how you use it. But he has only one credit card. He does not have six or seven credit cards

[@paulbetancourt3749]

Dave Ramsey, on this topic, is a complete idiot. If his statement were correct, then why does Bank of America have MORE whole life insurance on their balance sheet than they do other asset classes? BofA certainly is NOT "middle class."

[@astroman30]

@@paulbetancourt3749 Simple banks that carry WL are wrong. It doesn't take a rocket scientist to realize that insurance companies keep the cash value in the policy when the person dies. The only people who like WL policies are weasels who sell it.

[@paulbetancourt3749]

@@astroman30 There is no helping ignorance. Not only do you not understand how while life insurance works, you do not understand how to include it in your investment portfolio nor how to leverage it for your investment cash flow in retirement. Good luck to you, I can't help stubborn and ignorant.

[@joshuarohde3750]

Get with a proper company that is financially stable. Be fully educated on how whole life products work and function. They're the most flexible asset out there. Again, contingent upon the company you are with. There's not a lot of companies out there that can actually do what they claim whole life can do. Be educated. He's not wrong, but he's not right.

[@MrSF247]

Would you mind elaborating?

[@rcdrury1]

Well said. Anyone who says that whole life is a bad thing doesn't understand the mechanics of life insurance, and anyone who says that there's no such thing as a permanent need for life insurance knows nothing about financial planning.

[@dubol07]

Please give examples of the financially stable companies worthy of getting their whole life insurance. I am interested.

[@carollebump8359]

Hi Dave ,Im interested and looking for insurance for my 51 disable son who living with me .Please give me some advice . I qualify as low income and my son is too . Burial or Life . What is the difference ?

[@NicholasLashway]

Great video!!!

[@fr8tv4]

Feeling so much better about my term life insurance policy 😌 since 2015

[@kadzowanje5565]

Likewise

[@michaelmontalvo8603]

I really hope you are investing the rest because when your coverage is over it will cost about the same if you went with the Whole Life policy and that’s hoping that you are even insurable when you go to reapply

[@fr8tv4]

@michaelmontalvo8603 There is a term that the policy expires ... I thought that as long as I paid, the policy continues to be active?

[@michaelmontalvo8603]

@@fr8tv4 the reason it’s called Term is because you are only covered for a certain term of time. Usually up to 30 years but obviously, the older you are, the more restrictions a company can place on it. For example at 50 you might only be offered a 20 year term and god forbid you become diabetic or if cancer or MS come into the picture than you will not be approved which is when you would need it the most

[@Trckstr23]

Term policies are temporary insurance contracts that have a maximum time frame which can keep a guaranteed flat payment. But once your contracted time has been met, it’s possible to keep paying for that contracted death benefit at what is called an annual renewable term and those price points can get pretty hefty. IE: 50 years old, 20 yr contract for $100k death benefit at $120 a month. Once 70 years old is reached can potentially become $700 a month the first year and will steadily increase each year after. Whole life is not the only permanent option to keep forever with cheaper cost of insurance for cash value growth. Source: I am an Advisor that does offer insurance options.

[@ednacunanan5068]

I bought a whole life policy in 1992 for 100k from Metlife fro $103.00 a month. After 15 years, my cash value is 39,000.00. I also have 9K dividends that I can cash out anytime. I have only paid 29,000.00 in premiums. I made 19K and had protection sine 1992. What are you taking about?....

[@flavf2494]

Edna Cunanan if you had invested that $100 a month in an index fund since 1992, you would have had a lot more than that.

[@flavf2494]

Try again. Go to yahoo finance, pull up a chart of S&P 500 index fund. S&P from January 1992 of around $400 to a low around $800 in January 2009. That is still almost a double (or not wiping out your gains) . Plus if you kept the money invested until today almost $2400 on the S&P. Easily outpacing your insurance policy. finance.yahoo.com/chart/%5EGSPC#eyJtdWx0aUNvbG9yTGluZSI6ZmFsc2UsImJvbGxpbmdlclVwcGVyQ29sb3IiOiIjZTIwMDgxIiwiYm9sbGluZ2VyTG93ZXJDb2xvciI6IiM5NTUyZmYiLCJtZmlMaW5lQ29sb3IiOiIjNDVlM2ZmIiwibWFjZERpdmVyZ2VuY2VDb2xvciI6IiNmZjdiMTIiLCJtYWNkTWFjZENvbG9yIjoiIzc4N2Q4MiIsIm1hY2RTaWduYWxDb2xvciI6IiMwMDAwMDAiLCJyc2lMaW5lQ29sb3IiOiIjZmZiNzAwIiwic3RvY2hLTGluZUNvbG9yIjoiI2ZmYjcwMCIsInN0b2NoRExpbmVDb2xvciI6IiM0NWUzZmYiLCJyYW5nZSI6Im1heCIsImFsbG93Q2hhcnRTdGFja2luZyI6dHJ1ZX0%3D

[@pacUndo90]

good luck borrowing your own 39,000.00

[@ednacunanan5068]

So, my beneficiary will still get a lot more than I put in. It's not money lost. I can surrender the policy for my own needs if I want to.

[@ednacunanan5068]

At least I know I have protection, I can sleep at night.

[@KrypptikkSoulslayer]

Had a relative who bought whole life with cash value. When his mom died, the insurance company only paid him the face amount and said that if he also wanted the cash value he would have to take them to court. In the end, he only took the face amount. All that extra money going into that policy wasted. Crooks I tell you.

[@JMKrech]

great advice on insurance

[@stephan24297]

I think credit cards are good IF you have the money already to pay for it

[@hmrobert7016]

Tragedy of the commons- individually a charge card (or a credit card used as a charge card) is good but the transaction fees used to fund rewards ends up raising prices for everyone.

[@acruzro95]

@@hmrobert7016 not only that, the readily available nature of the card makes your spending habits more lose. If you have 200 in cash you are less likely to spend it than if you swipe the card. Obviously its 2020 so is more convenient to carry card instead of cash im just pointing out the psychology difference between paying with cash and paying with a card.

[@arpansujatha6556]

Thank you, Dave. Can we trust any company selling term life insurance to pay our families as promised in the event of an unfortunate situation?

[@karlwashington6414]

Primerica

[@Godsdaughter530]

thats what I am afraid of

[@kennybates8156]

@@Godsdaughter530 don't be afraid. At Primerica, we do what's right 100% of the time! We only offer term insurance. Be afraid to be led down a bad investment for your money dealing with a whole life insurance policy from an agent.

[@tonyarice2452]

@@Godsdaughter530 at Primerica we do what's right every time!

[@pursuitofthegrind]

​@@tonyarice2452 Thanks Primerica! For your BS advertisement.

[@dreammediastudio6914]

Thank you ❤

[@gabehcoud]

I love you Dave Ramsey❤️🙌🏽

[@rusty2217]

Thanks Dave Ramsey I can't sleep now thinking about the extra I've been wasting on whole life when I could have put the extra into a simple mutual funds account and earned more over the same period of time..lesson learned and thank you I am forever grateful

[@tommygringo3871]

He is not correct

[@healtc5069]

Life insurance is the most efficient way to transfer wealth from one generation to the next. Having a solid permanent life insurance plan in place makes great financial sense when part of your goals is to leave something behind regardless of what you statements say when you die.

[@TekEffekt]

Thomas Healy No it’s not. Just save your money and write up a will.

[@healtc5069]

Kyle Zawacki not even close. Life insurance as a death benefit will always be worth more than an investment. It’s as simple as that.

[@thadofalltrades]

@@healtc5069 Nope, totally false. Most investments will outpace a cash value life policy in value if allowed to mature. The math is pretty simple.

[@healtc5069]

Thad Lozensky explain the math please.

[@healtc5069]

Thad Lozensky I’m still waiting on this “simple math”.

[@puneetsehgal8200]

Have a question. Got bit confused. If I have UL insurance with half a million dollar coverage. And if I die say in 30 years and I just have to pay for 20 years then my beneficiary will still get the coverage money even they will not get the cash value. But if I try to say $200/months still I will not be able to save $500k in 30 years. Where in Term I have to renew my policy after 20 years and there is a chance that I will not get the policy. So how UL is horrible in that sense?

[@beautifulqueen748]

Ok I like this man and I gotta call my insurance ppl on Monday and get out of my policy

[@Gogalen789]

Term policies are around 3X cheaper than permanent life insurance on average because the chance of a payout on behalf of the policyholder is less likely and 99 percent of all term policies never pay a death benefit because policyholders either stop paying premiums or outlive their term period. So the answer is: term and permanent life both have their upside and downside - you decide which suits your needs better or perhaps a combination of the two types of life insurance.

[@astroman30]

I purchase homeowner's insurance every year and never made a claim. Does that mean it's a bad purchase? NO!!! Insurance should only be purchased for RISK MANAGEMENT purposes. Trash value insurance is never a good buy. Letting an insurance company invest your money is beyond stupid.

[@Gogalen789]

Buying a universal life policy before age 60 with premiums guaranteed level to age 100 or 105....not too shabby.

[@astroman30]

@@Gogalen789ULs are worse than whole life. The cash cash value gets eaten up by all the fees/commissions leaving people to pay out of pocket for the ever increasing A.R.T. (Annual Renewable Term.)

[@LuvMaTigger]

I have heard that with term life policies the premiums go up a lot after the initial term, whereas with whole life policies the premiums never go up (they're "locked" in). Is this true?

[@jaimeangulo4880]

It is true, but the real question here is how long do you need insurance? You can buy term up to 30 or 35 years depending on the company. Let's fast forward35 years... are your kids grown? is the mortgage paid off? have you been paying yourself first for 30 to 35 years? Are you investing with a IRA (Roth, if possible) or 401k to get the employer match? If this is all yes, then do you have a need for insurance three decades from now? And funeral costs? If you have $500k cash, I am pretty sure you can pay for a funeral.

[@shadowrealm7858]

YUP! Also term once its done 20 years wtv you have to re-apply and guess what your health condition most probably isnt the same 20 years ago! Think about that!

[@theone-jt7hl]

Nick Pallotta wrong no medical qualyfication required So you mean you would like to be robbed your whole life? Bring your policy to someone to really explain it to you instead of just asuming. Save money from the begining of your policy so you dont need it. Any more but save separated from any life insurance.

[@alicelaybourne1620]

20 years is generally enough to make sure your children are grown and not in need of your income.

[@KyleHurd]

@@alicelaybourne1620 what about your wife? Will she be grown or are we more concerned about them....

[@morganspeace8719]

Does that mean i lose everything i put in once i cancel or can i take that and move it over into the correct type of insurance?

[@NailBedzNSereneDreamz]

I love it thanks for the info!!!😊😊

[@Iloveeegod]

Wow thanks so much!

[@profitshares7033]

My dad was 56 when he got life insurance a term policy wouldn't work. Whole was high $ but at 100K policy with an 80% cash value available. I wasn't going to get a 20 year term and try to renew at 70. He did not invest so options weighed and decision made. I couldnt save or invest over 50K in 10 years if he passed. Term just wasn't the better option.

[@diyahwilliams]

Both my mom and Aunt are 80 and have term insurance. Their premiums have went over 200 a month and their coverage has went down with one only being 15,000. I'm torn between term and whole because of this! I feel like both is a big scam!

[@xilencered7788]

It has a lot to do with age. They just explain an overall comparison here. But people live different lives. Some have riskier jobs some have kids / no kids. Term has the advantage of being cheaper and you can invest the rest on your own, except if your not responsible, you won't have the discipline anyways. You could get term at 25 then at 55 you need again but you have developed a health condition. Can barely work now how will you pay for the new term when it's gone up 10x

[@satyasaradhi3046]

Thank you

[@nba1ish]

Great stuff

[@Fj707ap]

Thanks Dave I was in market looking for life insurance, you saved me once again

[@mladensusanj5678]

I'd suggest not to trust blindly neither Dave nor IBC/WL (infinite Banking Concept, which tries to benefit off the Whole Life policy Cash Value) videos and literature. Schedule some interviews with agents, explain to them what you need, how would you use Cash Value, Loans... and ask them to provide you with their options (called Illustrations). Then, create your own illustration on investing in some other vehicle (IRA, stocks, RE, 401k...), but be as detailed, realistic and accurate as you can be (accounting for realistic gains, taxes, fees...). Then - compare the two (IBC/WL vs. your vehicles) assuming the investments of the same amounts (from your pocket). Look at how they are comparing in short term (5-7yrs), mid term (10-220yrs) and long term (>25yrs). I've done several interviews with IBC/WL practitioners and build out very detailed spreadsheet for my own investments. I'm still searching for the IBC/WL policy that would beat my projections, yet I CANNOT SAY that IBC/WL with all its fees and complexity is grossly under-performing. It delivers less growth, but one of the benefit of if could be low risk and stability. Basically, once you have your policy, you are on auto-pilot, unaffected by the markets, interest rates and your time to (not)spend on active investments.

[@tatummacbride-deaver3081]

Thank you for saving me from a horrrrible investment Mr. Ramsey! I'm 19 and am diving head first into financial freedom and had convinced myself whole life was better. A school teacher had told me you get cheaper premiums if you take out your life insurance when your younger and keep it you whole life but this benefit would not outway the huge premium price difference between term and whole life insurance. Thanks for all your knowledge!

[@KyleHurd]

Tatum, you're going to pay for them insurance for 30 plus years and never use it.... Less than 1% of term policies pay out.

[@slstg85]

Tatum look into universal life. Please.

[@eastonwilliams1722]

Yep, Term life is you literally giving the insurance company free money with no risk to them because they know the odds of your family using it is near 0%. But whole life insurance gains tax free dividends up to 8% a year

[@guitarcountry1]

Tatum, Dave Ramsey is right on this one. I'm in my 60s, retired, and never had cash value insurance. So I have been through the life cycle. I had term life insurance for 30 years. Very inexpensive. I invested $2000 a year ($166 a month) into mutual funds all those years and I can tell you this is the best plan. So glad I didn't buy cash value life insurance.

[@maliqmatthew1009]

@@guitarcountry1 It's one path. Permanent insurance is another. Consider that you would have some accumulated amount of cash value, no further premium payments to make if the policy was structured that way, and still a death benefit intact to pass off to a beneficiary. Why would that be worse?

[@MrOccyc]

Another little item about that savings account. If you want to take money out of it. You have to play it back with interest. They try to tell you that you can be your own bank.

[@LashusJourney]

We love you Dave ❤️🙏🙏🙏💎💎📚

[@sixstringriffs]

i've never heard of a permanent life insurance product that doesn't pay the face amount + csv ? From Canada though.

[@bullseye2252]

Alec Mailing my thoughts too! I’m from Canada as well and it seems like the policies are quite different over here.

[@martinilegacy]

100% these Ramheads get caught up in the strangest things and just stay blind to any other facts that are presented to them. Its 2020 not 1920, insurance is a powerhouse in the financial world, those who know this take advantage of the opportunity that is available the others may have to learn the hard way after witnessing others successful implementation of 150+ year old strategy.

[@gabrielrockman]

I'm in the USA and my policy pays the death benefit plus the cash value, minus the loans I've taken against the cash value (which I'll happily pay interest on because the rate I'm being credited on my cash value is on average higher than the rate I'm paying in interest on the loans I take from the cash value). Dave Ramsey and his disciples don't understand even the most basic things about cash value life insurance or personal finance.

[@vicentemendez80]

So Mr. Ramsey what do I do if I out live my term policy? It's going to be twice if not 4x of what I pay now.

[@johnd9541]

A good job provides for good savings.

[@johnd9541]

If you are still around to have your own investments + emergency fund to help you out then obviously you didn't need that term policy because you're still alive. Term only benefits those that die prematurely, because the premiums increase exponentially later in life at renewal time. Most term policies are cancelled for that reason.

[@stevee8318]

When you are retired in your 60s or 70s and your kids are adults you shouldn't need life insurance, period.

[@leroyjennings5842]

I am thinking about working for primerica. What are your thoughts on them. They sell insurance and do what you guys do here. But I can't afford to go through your program because my job has taking a plunge in pay. Help please

[@sunnydream5439]

Thank you for being truthful

[@AdeshSoodeen]

The problem with a term life policy is that once it expires you may be too old to get another policy at a decent price. There are various types of policies including Universal Life where the death benefit increases with the cash value of the policy. This video is misleading because it does not take into account individual circumstances, higher fixed rates, and various riders. Speak to a broker to get the correct and complete information.

[@gregoryharris7174]

That’s why you attached a retirement account alongside it so when it expires you become self insured because your investment accounts set so you become self insured, that’s why we call it buy term and invest the difference in Primerica.

[@AdeshSoodeen]

@gregoryharris7174 If the goal is to leave money for your family members tax-free, then life insurance is the way to go. Retirement funds should be set aside for that purpose. However, there is no reason why you can't have both in place.

[@Catherinelaird_]

This was the best explanation ever. As a former insurance agent this makes me mad i used to sell this garbage. I’m cancelling my policy and going term!

[@LuisTineo-gi5qb]

Muy educativo y nutritivo para la vida. Ese programa de orientaciones

[@tiamorrone1391]

so helpful

[@deenobrown1]

What’s wrong with a credit card if you pay it off every month? I haven’t had a credit card balance go unpaid in over 30 years. However, I use a credit card for 99% of my purchases. I get a lot of perks with it. What’s wrong with that?

[@hunggiap2650]

Agree!!!

[@za-jm8wf]

I literally just saw a presentation of someone selling whole life insurance. I'm glad I didn't buy and went with term life instead! Thank you Dave

[@michaelmontalvo8603]

I hope that you are investing the rest because when you reapply after the term it will cost you about the same as the whole life you didn’t get and more importantly, I hope that you are still insurable.

[@astroman30]

You did the right thing. Don't listen to the salesmen.

[@michaelmontalvo8603]

@@astroman30 I guess you aren’t aware of doing your due diligence since this video is stating misinformation and bad opinions.

[@astroman30]

@@michaelmontalvo8603 Due Diligence? Whole Life insurance? Nah Biggie, trash value insurance is a scam. There's your due diligence.

[@sethhiggins7783]

@@astroman30 Agree With Michael. Why is it that Life insurance guys get a bad rap. Some of us like helping people. Sure we get paid money. How much you think Dave is making from his Program. You think he is doing the show and video for free. People with knowledge and an expertise get paid.

[@markthegoat4404]

Well don’t if you have a 30 year term policy, and that person doesn’t die they don’t return the premium paid? What are your thoughts on return on premium policies?

[@MasterG2361]

Well... I have been explaining the benefits of term life insurance and the many reasons why it is much better than whole life for years. I will be happy to explain it to you too. AND get you a FREE no obligation quote as well. Dave is Right.... Buy cheaper term, same coverage, invest the difference.... Get a lot more money returned.

[@Dude408f]

When someone puts a complicated thing simple, often is inaccurate. I'd say it's worth discussing about insurance, about investment, about protection and about taxes.

[@sentientmlem727]

"If you can't explain it to a six year old, you don't understand it yourself." Albert Einstein

[@tommydevries8264]

New York Life paid a 6% dividend rate to Whole Life policy owners in 2019.

[@102nightwing]

What did New Your Life pay in 2018, 2017, 2016, etc.? Maybe 6% on what was left over after fees, and expenses which are (naturally) meant to nullify andy increase in dividends. Insurance is not an investment it is for emergencies/tragedies only. New York Life is NOT Santa Claus.

[@tommydevries8264]

@@102nightwing NYL has paid +6% dividend to its "policyholders" for over 20 years save two years. All cash value grows tax deferred and its compounded, which is huge. What Mr. Ramsey fails to tell his listeners is the wealthy have been using this vehicle for over 150 years to build and retain wealth. Making money is one thing, keeping it is another thing altogether. Granted, WL is not for everyone, and ALL companies are not alike. Do some homework, trust no one!! Best wishes nightwing.

[@tommydevries8264]

@@102nightwing Investment - "the action or process of investing money for profit or material result." I would say if used correctly, Life Insurance definitely will produce a material gain.

[@102nightwing]

@@tommydevries8264 Life insurance transfers risk. It only pays out if an untimely event occurs. Life insurance only produces a material gain if the person being insured dies.

[@puneetjamariya]

The stock market paid more after accounting for taxes. Even more if you invested in Roth IRA. People just need to invest in S&P 500 for 30 years and will come out better than any policy

[@TaylorArtandFun]

You had me at "borrow your own money"

[@RALPHD57]

FIRST CLASS ADVICE! THANKS DAVE!

[@matthewsookraj9028]

I was young and dumb. I bought whole life insurance. The policy is up to cash $4000 and the deducible to take it out is $5000.

[@theforce5191]

If its not structured properly, it may be bad.

[@michael0783fly]

Term insurance works better for middle class. You buy a term, and invest everything else to 401k, IRA, Roth and all other Index funds. Over 50 years, index will overrun the return from whole life by at least 200%. Whole life is good if you already max out everything else first and of course it is tax benefit to leave wealth to your beneficiaries.

[@juanfloressaldana3376]

There are many key points that weren’t disclosed or perhaps you don’t understand them, Dave I have a 52 year old male who took a $100k whole life policy 2 years ago to provide his family in case he dies (could it happen?) 2 years later there is a nice chunk of money and the policy has grown to over $102k death benefit tax free, investments are great too, they are just different I believe they can complement each other very nicely. Fix money and risky money perfect deal. Be smart goals are great but first take care of your priorities.

[@manhquanbaohiem3534]

Hello sir! In Vietnam people are very afraid of insurance consulting and it turns out the same in the world