17 Replies to “Should I Buy Whole Life Insurance? – Whole Life Vs Term – Is Whole Life Insurance Bad or Good?”

  1. I've heard that if you have whole life and you die, you keep the death benefit, but the company takes your savings. Whereas, if you have term and a mutual fund and you die, your beneficiaries get both the death benefit, and the mutual fund savings. Is that true?

  2. How can the cash value of a whole life increase as fast as possible? Does it mean that in order to do that the death benefit has to be low? I'm not concern about the death benefit being high.

  3. You begin your video by comparing cancelling home owner’s insurance before a tornado to someone cancelling their Term life Insurance Policy prior to death.  I hope you truly don’t believe the two are equivalent.

    When you use an over-simplified example of cancelling insurance before a tornado, you only feed into the skepticism of Whole Life Policies.
    A Whole Life Insurance Policy is a combination of two distinctly different financial products.
    In very simple terms:
    Insurance – A contract to protect against the possibility of a future unforeseen loss. Investment – The allocation of Capital in order to gain a profitable return

    The companies (and individuals) who sell Whole Life Insurance Policies would like you to believe you cannot achieve the same level of financial success if you uncouple the two products (i.e. buying Term Insurance and investing the difference would not yield a better result).  I beg to differ.
    Your quote:
    “Term Insurance is essentially renting death benefit”
    Yes Dan that is correct, in fact most conventional forms of insurance can be construed as “renting” a particular benefit.

    “Every year you pay rent, but the day you stop paying rent, it’s over. You have nothing to show for it, all that money is wasted”.

    WHAT???  So by your logic if I pay homeowner's insurance for 40 years and my house never burns down then “all that money is wasted”.  Seriously??  It’s called purchasing protection for unforeseen loss.  If I never have a loss, I’ve hardly “wasted” my money.

    The coupling of Insurance and Investment through the vehicle of a Whole Life Insurance Policy is an enormous money-maker for the companies and individual sales people who sell these policies.You can achieve the same and BETTER results by utilizing other investment and insurance options but that's something a Whole Life Salesman will never tell you.

  4. First of all I want to say this is a fantastic video,

    It really points out the benefit of permanent life insurance. One thing I've found with a lot of videos on youtube is that they'll either be completely pro whole life or completely pro-term life. I really appreciate that you indicate that term life does have a specific purpose that some people should look into.

    As a life insurance agent, I believe that everyone's situation is different and that not everyone needs the same insurance policy. However, AS LONG AS IT IS AFFORDABLE, everyone should get some sort of whole life coverage, because it is important to have a tax-free benefit that pays for final expenses.

    However, I'm not a huge advocate of cashing out the whole life policy early, mostly because the face amount will higher then what the cash surrender value would be.

    But overall, Great job Dan. I appreciate your advice and plan on showing this video to my fellow life insurance agents and potential clients

  5. The returns are bad…like less than 0% after fees when taking money out of Whole life Insurance. Then you lose the life benefit once you take money out. So there is no gain…so the tax free comment is simply a sales pitch. Remember if it were so good, how could an insurance company make money if it was that good of an investment. Well also the premiums are 20 x term insurance. Don't believe this slim ball on video. He is brainwashed and makes a lot of money selling Whole life insurance.

  6. Sir I've heard you talk about gaining over 3%, but it is my understanding that Whole Life plans cash flow relies on dividends as the payment.  Most dividends fall into the 2%-4% range.  Is there something I'm missing here ?  I think annuities make since as a hedge against just holding blue-chip dividend stocks in long term bear markets or corrections.  I just don't see how Whole Life provides more cash flow than an annuity.

  7. You keeping on saying most people "drop" their term insurance. I think most term policies "expire." When I'm 60, my house will be paid off and no kids in the house. Why would my wife need anymore money than our retirement savings? The reason why wealthy people buy more whole life insurance is for tax reasons. A product that's good for wealthy people is horrible for the middle class. So back to your questions. I would not have to cancel my homeowners insurance if I see that tornado coming. Because I let it "expire" 10 years ago, and I can just go live at my lake house (because I was able to invest what I saved) for the rest of my retirement.

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