Life insurance

Term Life Insurance Prices Drop by Half by Jack Speer November 30, 2006

Listen Morning Edition • • Add to Playlist Download

text size A A A November 30, 2006 With economic inflation, most prices tend to go up, not down. But there are always exceptions, including term life insurance. It now costs 50 percent less than it did 10 years ago. Copyright © 2006 National Public Radio®. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required. RENEE MONTAGNE, host: Inflation, even fairly moderate inflation, means that over time the prices of most things will go up. There are always exceptions - life insurance for example. In the past ten years, the cost of term life - the most popular kind of life insurance - has fallen by 50 percent. Here's NPR's Jack Speer. JACK SPEER: Not long ago, 68-year-old John McCrate(ph) would've had a difficult time finding reasonably priced life insurance. His age would've been a factor -he's older than the traditional life insurance customer. McCrate owns his own business, a management consulting firm in New Canaan, Connecticut. He and others in the firm felt he needed to be covered. Mr. JOHN MCCRATE (Own of Management Consulting Firm in Connecticut): We looked at where we were and where we were heading. And I realized, that if anything would happen to me, that the obligations of my firm might fault my family. SPEER: McCrate figured he needed about $3 million worth of life insurance, and was surprised to learn he could afford it. David Woods is with Bass Mutual, and sold McCrate his policy. Mr. DAVID WOODS (Bass Mutual, Sold McCrate His Policy): The younger people are surprised at how inexpensive it is. The older people are just surprised they can get it all, and that they can afford to get it. I would say that there's a growing awareness on the part of consumers, but it certainly is not widespread. SPEER: Term life insurance, like McCrate bought, pays a fixed sum when a policyholder dies. It's generally less expensive than other kinds of life insurance, and it's seen the most dramatic price declines in recent years. There are a number of reasons why term insurance rates have been falling. Woods says one of them is obvious: people are living longer.

1

Life insurance
Mr. WOODS: Two 65-year-olds - husband and wife, for example - there's a better than even chance that one of them will still be alive at the age of 92. SPEER: When people live longer, they pay into the overall insurance pool for a longer period. The company meanwhile pays out fewer claims than anticipated and has more money to invest. All those things have allowed life insurers to reduce premiums. Kevin Ahearn(ph) follows the insurance industry for Standard and Poor's. Mr. KEVIN AHEARN (Follow Insurance Industry for Standard and Poor's): At the end of the day if there's a recognition that the probability of death during a period of five, 10, 15, 20 years, which is normally what the term period covers, that clearly can drive down the costs. SPEER: The death rate for those in the 25 to 44-year-old age group - the biggest buyers of term life - fell 10 percent over the last decade. There are a number of reasons why people are living longer. There are advances in medical technology, early diagnosis of disease, and more effective medical treatment. And then there's the technology that has nothing to do with your doctor - the airbags in your car, for instance. The Internet too, has played a role in pushing down insurance premiums. Neil Doherty is a professor at the Wharton Business School. Professor Neil Doherty (Wharton Business School): It's become much easier to shop for insurance these days. You can go online and typically get a number of quotations and then comparison shop. SPEER: And because consumers can now compare insurance rates online, Dockerty says many insurance companies have had to lower their rates. As to how long life insurance rates will continue to come down, analysts say there's no simple answer. The prediction from the industry is life insurance rates will fall by another four percent next year. Don't be too quick to rush out and spend all that money you're saving, though. The cost of health insurance will likely keep going up in coming years. Jack Speer, NPR News, Washington.

Flexible, Affordable, Quality Term Insurance -and a New Calculator to Determine How Much You Really Need SPRINGFIELD, Mass., Sept. 13 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced the launch of Vantage Term(SM), an innovative term life insurance product line that provides policyholders with high value for their premium dollar, affordable options, and increased flexibility in meeting their protection needs. MassMutual is also debuting a new online calculator that offers a more comprehensive picture of how much life insurance is needed to replace the income and services he or she provides to loved ones. The Vantage Term portfolio features both a 10-year and 20-year level premium product, as well as an annually renewable term product. The new product line boasts a significant advantage: the option to convert to MassMutual's entire line of permanent life insurance policies without the need for a future health assessment – meaning no physical or additional medical questions asked. "Term life insurance with an option to convert to permanent solutions addresses the reality for many people in that the need for life insurance doesn't disappear, it may just evolve," said Melissa Millan, senior vice president, U.S. Insurance Group, MassMutual. "Vantage Term provides a cost-effective coverage option for younger families just starting out, as well as the opportunity to achieve lifelong financial protection as people age and their financial needs change. Convertible term insurance enables you to keep your policy with the same financially strong company that you started with, while providing the benefit of lifelong coverage that may offer additional advantages, such as a guaranteed death benefit, cash value build-up and the potential to earn dividends."

2

Life insurance
The new Vantage Term product line includes an optional rider:* the Waiver of Premium Rider, which guarantees that the policy will stay in force even if the insured becomes disabled. It also includes an Accelerated Death Benefit Rider,** which provides the policyowner an advance on death benefits, should he or she become terminally ill. To coincide with the roll out of its Vantage Term product line, MassMutual is also launching the Lifetime Economic Value tool, an easy-to-use online calculator which uses a sophisticated formula to estimate the total economic contribution a person will earn for his or her household over the course of his or her working life. This figure correlates to the amount of life insurance a person may need to replace those earnings by factoring in an individual's total income earned before retirement, as well as employer-provided retirement and health insurance benefits. The tool also accounts for the value of personal services the person provides for his or her family – everything from lawn care and snow removal to filing the annual tax return. The calculator is available on MassMutual's website: www.massmutual.com/planningtools/life-value-calculator. "If your family relies on you financially, it's critical to determine how much life insurance you may need to help protect your and their financial future," said Damon Bates, vice president, U.S. Insurance Group, MassMutual. "Yet, many Americans don't know how much they may actually need. Instead of relying on any rules of thumb, the Lifetime Economic Value tool provides as effective a measure as possible to help you determine your life insurance coverage needs. From there, you can design a strategy that's best for you, which may include a mix of term and permanent life insurance coverage to provide what you need today with options for the future." Visit www.massmutual.com to learn more or to contact a qualified financial professional. About MassMutual Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders every year since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company's strong and growing network of financial professionals helps clients make good financial decisions for the long-term. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, Inc., member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB. *Available at an additional cost. **Included at no additional cost at issue. If you become terminally ill, as the insured and the policy owner, you can receive an advance of policy death benefits. These funds may be used for any purpose; for example, to pay medical and everyday living expenses. There will be administrative and interest charges upon exercising the rider. Not available in the state of New York. Vantage Term Life Insurance Policies (Policy Form TL-2009 and ICC09TL in certain states, including North Carolina) are participating, annually renewable term life insurance issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. Dividends are not expected to be paid.

8 big life insurance mistakes to avoid By Amy Danise, Insure.com Last updated Oct. 28, 2010

3

revealed that ownership of individual life insurance has fallen to a 50-year low in the United States: 30 percent of households (35 million) have no life insurance coverage at all. Mistake: Undervaluing a non-working spouse. cautions against cash value policies in general because so many buyers ditch them in the early years of the policy.” James Hunt of the Consumer Federation of America. Feldman says it takes about $117. a consumer advocacy group. There are numerous online calculators to help.com Life insurance is an important monetary investment. “The data is clear. including calculators from the LIFE Foundation and Insure. . a trade group. In addition to underestimating the cost of replacing the income of a working spouse. “This is not to say that cash value polices 4 . life insurance buyers often neglect to place correct value on a non-working spouse.com’s life insurance calculator. president and CEO of the nonprofit Life and Health Insurance Foundation for Education (LIFE). But if the fear of making a bad life insurance decision is stalling your effort.” Marvin Feldman. What do you want your life insurance to provide? (Check all that apply) • • • Extra income to my family Money for funeral costs An inheritance for my heirs Interested in using this tool on your site? Contact us at partnerships@insure. But ditching an inappropriate policy after paying premiums for several years is a terrible waste of money. also promotes savings.000 a year to replace that person. Whole life insurance. . spokesperson for the American Council of Life Insurers (ACLI). However.Life insurance • • • • 0diggsdigg Life Insurance Calculator: Find out what's the right life insurance for you. . Mistake: Insufficiently reviewing all types of life insurance available. Mistake: Grossly underestimating a family’s life insurance need and the “value of human life. says Amy Bach. with its cash value. the lifetime of level premiums that comes with whole life insurance is unappreciated by too many people who think in the short-term. Too often. executive director of United Policyholders. know that failing to buy life insurance at all can be one of the most costly mistakes you can make for your family.” An August 2010 report by LIMRA. life insurance buyers find that they can’t afford the ever-escalating premiums and must let the policy lapse. “Americans are underinsured and they're not buying coverage in amounts that equal their needs. We asked a variety of insurance experts to tell us the biggest mistakes people commonly make when shopping for life insurance. and you don’t want to buy an unsuitable policy or discover that you’ve purchased too much or too little. Dolan says that “term life insurance for young people in particular typically provides a greater bang for the buck than whole life insurance. a nonprofit dedicated to insurance education and consumer rights. and “most people don’t understand the impact of what a stay-at-home spouse saves a family. an insurance research organization.” Mistake: Buying a life insurance policy with premiums that increase over time.” says Jack Dolan. says that people often substantially underestimate the amount of life insurance they should buy.

consult a professional agent. Feldman says most people think life insurance is “too expensive” because they don’t understand the true cost of insuring a life. 10 percent lapse in the second year and almost 7 percent lapse in the third year of ownership. "The more risk you represent.” he says. getting healthier and adopting new hobbies can all work to your advantage.com advertisement When it comes to term life insurance. An agent can make a recommendation based on your situation -. But when people lapse whole life insurance policies. Mistake: Allowing an agent or broker to complete and submit the application for you.” he says. lapse rates for term life insurance were around 7 percent in years one and two and about 6 percent in year three. If you don’t fill out your own application.is lost. When in doubt about life insurance Your family’s financial picture likely has many moving parts – income. When in doubt about a life insurance purchase.Life insurance can't be decent investments when held at least 20 years. 5 . Still. advises Feldman.or not maximizing -. president of Vivo Livre. Mistake: Buying a complicated cash-value life product without understanding its terms and payout conditions. the worse your classification will be and the higher your premium. . Hunt warns not to short-change your tax-reducing retirement accounts at work. a financial planning and consulting firm in Newbury Park. preferably a lifetime. retirement savings and investments that need to be balanced against mortgage payments. Those are some of the criteria insurance company actuaries use to decide how high your premium should be. He points out that life insurance is generally less expensive today than it’s ever been in the history of life insurance products. 20 or 30 years. usually 10. Bach points out that buying a policy you don’t understand is a financial blunder.“they’re not just selling you the lowest cost policy. college tuition needs and other financial obligations. Calif. "Classifications are pools of policyholders who represent different levels of risk. Mistake: Sticker shock that prevents you from buying life insurance. although different insurance companies have their own vernacular. the “excess of premiums paid over term [life insurance] premiums . Annual premiums depend on the classification you're assigned.contributions to retirement accounts. in order to afford a cash value life insurance policy.” A 2009 report from LIMRA on life insurance lapse rates shows that close to 12 percent of whole life policies lapse in the first year. Bach advises you to check it thoroughly to make sure the agent recorded the right answers. changing jobs." says Chad McCloskey. 2010 | Bankrate. such as a 401(k). many factors affect which underwriting classification you're assigned. Mistake: Being talked into terminating or reducing -. By contrast. How are Term Life Insurance Premiums set? Published May 27." Standard and preferred had been the only term life insurance classifications and now are largely universal. Even if your financial situation indicates that whole life insurance serves your needs. . Term life insurance gives your beneficiary a predetermined death benefit if you die within a certain period of time.

she'd pay: preferred plus. tobacco use. you'll be charged less than someone who does. Read more: http://www. and you don't want to buy an unsuitable policy or discover that you've purchased too much or too little. insurance companies. (The biggest mistake would be not buying it at all. Other guidelines are driving record. $475. so the cost for term life insurance has gone down considerably. insurance companies will consider you a greater liability. $311. you can never be put in a higher risk category even if you start smoking. standard plus. Likewise. a 40-year-old man with coverage at $500. $533. $407. and whether you have heart disease. "More classifications exist now because of the competitiveness of the market.000 and a term of 20 years will have the following annual term life premiums for these classifications: preferred plus. But if the fear of making a bad decision is stalling your effort. foreign travel or residency. insurance rates. know that failing to buy life insurance at all can be one of the most costly mistakes you can make for your family. Udell says." says Udell. The good news is once your classification is set. felony criminal activity. $625. develop cancer and gain 50 pounds. says McCloskey.com Life insurance is an important investment. For a woman of the same age with the same coverage. a term life insurance brokerage in Wheeling. family history. your cancer goes into remission or you get a less risky job. standard plus.foxbusiness. Although gender doesn't affect your classification." What affects your classification Guidelines used to determine your term life insurance classification include age. weight.com/personal-finance/2010/05/27/term-life-insurance-premiumsset/#ixzz1HRJHk9QX The Basics 8 ways to wreck your life insurance Experts tell where people are most likely to go wrong when they try to properly protect their families. height. if your health improves. parasailing or hang gliding.Life insurance "Many companies have ultra tiers like super preferred and preferred plus. and use names like Table 2 or Table A for the less favorable classifications. CEO of Firstrust Financial Resources in Philadelphia." says Adam Sherman. and cholesterol and blood pressure levels. Sherman says you'll pay a larger premium. you lose weight. if your daily work puts you at risk. diabetes or cancer. says Byron Udell. If you spend your time mountain climbing. On the other hand. hazardous occupation or activities. military service. $638. 6 . says Udell. founder of AccuQuote." says Sherman. and standard. $375. "The very best health rate you could get in 1994 was $995. or as a weekend pilot. if you are in good health. $760. you can reapply and potentially qualify for a lower rate class that will save you money on your insurance. Ill. For example. preferred.) [Related content: insurance. and standard. Basically. "Revisit your policy every two years to see if you can be upgraded and if the term of your policy is in line with your current needs. policies] By Insure. it does affect premiums because women tend to have a longer life expectancy so they pay less for the same coverage than a male of the same age and classification. don't use tobacco products or engage in hazardous activity. life insurance. preferred.

preferably a lifetime. In addition to underestimating the cost of replacing the income of a working spouse. the president and CEO of the nonprofit Life and Health Insurance Foundation for Education. Dolan says that "term life insurance for young people in particular typically provides a greater bang for the buck than whole life insurance . such as a 401k. and "most people don't understand the impact of what a stay-at-home spouse saves a family. life insurance. Whole life insurance. By contrast. in order to afford a cashvalue life insurance policy. a consumer advocacy group. lapse rates for term life insurance were around 7% in years one and two and about 6% in year three. . 10% lapse in the second year and almost 7% lapse in the third year of ownership. insurance companies." • Check insurance rates for thousands of cars An August 2010 report by LIMRA. 7 . also promotes savings.000 a year to replace that person. ." he says. Mistake: Sticker shock that prevents you from buying life insurance. . the "excess of premiums paid over term (life insurance) premiums . Hunt warns not to shortchange your tax-reducing retirement accounts at work. an insurance research organization. "This is not to say that cash-value polices can't be decent investments when held at least 20 years. There are numerous online calculators to help. including one from MSN Money.or not maximizing -. however. policies] Mistake: Buying a complicated cash-value life product without understanding its terms and payout conditions. a nonprofit dedicated to insurance education and consumer rights. is lost. Mistake: Insufficiently reviewing all types of life insurance available.contributions to retirement accounts. insurance rates.Life insurance Life insurance for seniors "The data is clear. the executive director of United Policyholders." Marvin Feldman. says that people often substantially underestimate the amount of life insurance they should buy. life insurance buyers often neglect to place correct value on a non-earning spouse. revealed that ownership of individual life insurance has fallen to a 50-year low in the United States: 30% of households (35 million) have no coverage at all. with its cash value. a spokesman for the American Council of Life Insurers." Mistake: Buying a life insurance policy with premiums that increase over time. He points out that life insurance is generally less expensive today than ever before. But ditching an inappropriate policy after paying premiums for several years is a terrible waste of money. life insurance buyers find that they can't afford the ever-escalating premiums and must let the policy lapse. "Americans are underinsured. Mistake: Being talked into terminating or reducing -. Feldman says it takes about $117. But when people let their whole life insurance policies lapse." says Jack Dolan. cautions against cash-value policies in general because so many buyers ditch them in the early years of the policy. a trade group. Mistake: Grossly underestimating a family's life insurance need and the "value of human life. the lifetime of level premiums that comes with whole life insurance is unappreciated by too many people who think in the short term. Mistake: Undervaluing a spouse who has no income. says Amy Bach." James Hunt of the Consumer Federation of America. We asked a variety of insurance experts to tell us the biggest mistakes people commonly make when shopping for life insurance. Feldman says most people think life insurance is "too expensive" because they don't understand the true cost of insuring a life. . Too often. Bach points out that buying a policy you don't understand is a financial blunder. and they're not buying coverage in amounts that equal their needs. Even if your financial situation indicates that whole life insurance serves your needs." A 2009 report from LIMRA on lapse rates shows that close to 12% of whole life policies lapse in the first year. Continued from page 1 [Related content: insurance.

held securely in Treasury or municipal bonds and certificates of deposit. They also complicate the issue of how much life insurance is right for you and your family and what kind you should buy. a financial planner in Hunt Valley. Online calculators are apt to tell you to raise your coverage by $1 million even if you already have insurance. • Do you have the right kind of insurance? Standard formulas -. advises Feldman. An agent can make a recommendation based on your situation -. parenthood. That's easier than it sounds. children] By Kiplinger's Personal Finance Magazine Unpredictable investment and job markets are rough on savings and retirement planning. insurance rates. you're better off taking a systematic approach to figuring your life insurance needs.such as buying coverage equal to eight to 10 times your annual income -. That's why some experts and most online calculators sponsored by the insurance industry seek to figure the chunk of investment capital it would take to replace all of your income for 20 years or longer. 2010 How much life insurance do you need? The answer depends on your health." he says. Life insurance for seniors Low inflation and a recovering stock market may tempt you to lowball your life insurance needs. age. Instead of relying on rules of thumb." says Tim Maurer. retirement savings and investments that need to be balanced against mortgage payments. as you'll see from the following process.com. life insurance. college tuition needs and other financial obligations. not less.. kids or mortgage.income. such as puny yields on reinvested lump-sum benefits. Bach advises you to check it thoroughly to make sure the agent recorded the right answers. When in doubt about life insurance Your family's financial picture likely has many moving parts -. 10. The truth is that life insurance is a personal affair. And you'll likely experience life events that call for changes in your insurance: marriage. and co-author of "The Financial Crossroads. college expenses and retirement. With savings yields low and the prospect of longer life expectancies in retirement. homeownership. Two couples may earn equal salaries.Life insurance Mistake: Allowing an agent or broker to complete and submit the application for you. When in doubt about a life insurance purchase. especially if you assume raises and promotions. But other financial realities. 8 . income. This article was reported by Amy Danise for Insure. this approach tends to aim high. Here's a simple way to calculate an actual dollar amount. Md. marriage. consult a professional agent. If you don't fill out your own application. Published Dec." A simple strategy The purpose of life insurance is to allow your family members to pay the bills and live their lives as planned despite your absence. savings and whether you have a spouse. [Related content: insurance. but it's silly to say that someone with four young children should have the same coverage as empty-nesters with no mortgage and a substantial retirement fund. because it "truly is an art as well as a science."they're not just selling you the lowest-cost policy.are inadequate shortcuts. may require that you have more coverage.

but you could decrease your coverage if your spouse earns a substantial salary. • Education expenses. you'll find it tough to buy additional coverage later at a price you can afford. "But I see an overabundance of people who end up justifying more insurance than I think is reasonable. Maurer recommends covering 50% of current pretax earnings until retirement. but the money should be available so that they won't face the prospect of being forced to sell. Continued from page 1 [Related content: insurance. If you're the one with the medical condition. Add all four categories to estimate how much life insurance is appropriate. Your beneficiaries may be able to get the tax-free proceeds from insurance faster than if they waited for money from your estate. a healthy 40-year-old male nonsmoker might be considering a 20-year. you can buy a new policy and lock in the price for 20 years. That assumes the insurance benefits will earn 5% a year over the long haul. Total your mortgage balance. divide $50.000.and that's where the art part of the calculation comes in. It's not as easy as it used to be to qualify for the absolute lowest rates. • Final expenses. You can get prices from dozens of companies from AccuQuote or Life Quotes. a conservative back-of-the-envelope figure. They may choose not to retire the mortgage. Women pay less -. he offers a simple strategy to calculate how much coverage to buy and to form a plan that's easy to update. Once you cover funeral expenses. says Byron Udell.05. Use $15. With term insurance.000 by 0. A funeral. • Mortgages and other debts.just $311 per year for $500. insurance rates. Because prices for term have been dropping. life insurance. You might increase it if you don't have a pension. your family won't need to replace 100% of your income -. if you earn $100. because you need to consider the cost of college at the time your kids enroll. then tweak the number to reflect personal circumstances. you may not pay much more to extend your coverage if you shop again in. He recommends looking up current costs for colleges you're considering. marriage. and adding the amount in today's dollars to your life insurance calculation. If you or a family member has a troublesome medical history. say. which represents dozens of life insurers. If you're in fine physical shape.000. For most families. 9 . For example. which works out to $1 million. which you can keep for the rest of your life regardless of health. this exercise will work out to an amount in the high six figures. College costs have been rising by about 5% a year. But Maurer devised a simple solution. but they usually remain level indefinitely.Life insurance "You can find people who are extremely minimalist with insurance recommendations. which is the same rate he conservatively expects life insurance proceeds to grow over time. especially if the interest rate is low. • Income replacement. student loans and any other debts that would be a heavy burden on your survivors. debts and education. $500.000 or even $250. Some term policies come with the right to convert to permanent life insurance. This calculation can be tricky. car loans.000 in coverage and $558 for $1 million.05. But he could buy $850. You can translate this into a target lump-sum benefit by dividing it by 0. The idea is to assess whether you need extra coverage or different policies only after you project your life insurance needs as the sum of four categories. the owner of AccuQuote.000 to $20.000 as a ballpark number. children] The time factor Also consider how many years you'll need insurance. add $100. or a $1 million policy for $645.000 of coverage for $576. burial and related expenses tend to cost $10. For example. boosting your death benefit by hundreds of thousands of dollars should cost just a few hundred dollars a year.000 term policy for $360 per year. deciding whether you want the insurance to cover all or a portion of the tab." Instead. possibly even $1 million or more. But don't be frightened." says Maurer. Premiums will be higher than for term at the beginning. five years.000.

when term gets expensive. withdrawn or tapped to keep the policy in force without paying additional premiums." says Bivek. which can be borrowed.and it doesn't get any cheaper if you're not around. • • • • Tie the knot. When you settle into your family's permanent home. Northwestern Mutual Life provided this example for a 27-year-old man who starts by paying $317 for $500. who bought slightly more than $1 million in life insurance coverage when his 3-year-old daughter." This article was reported by Kimberly Lankford for Kiplinger's Personal Finance Magazine. Sarina. a 32-year-old banker in Atlanta. If you shift another $100. your premium would rise to $2. No more insurance from work. .000 at age 31. If you shift $100. He added more insurance when he and his wife. You might want permanent insurance. for the entire $500.000 of whole-life insurance. "so I'm buying as much as I can now and converting it over time. and term is cheap.or after age 65. Bivek has already converted some of the coverage to whole life and expects to convert more of it as his income grows. the policy's cash value will rise every year. . or if you want to leave money to a school. Have a child. Some young people buy the amount of permanent insurance that fits their budget. as will the death benefit. Term vs. your annual premium would jump to $1. 2010 10 .200 at age 40. By age 65. That essentially gives you a pass if you gain weight. in this example. "I'm in good health now. Are about to retire. That's not smart.Life insurance The best reason to consider whole-life or universal-life insurance isn't the accumulating cash value. It takes a lot of money to raise a child -. guard against its loss in case tragedy strikes. Buy your dream house. Published July 30. for example. Term vs. charity or your children and you don't expect to afford it any other way. Your new spouse might depend on you even if he or she earns as much or more than you do.600. One advantage of a convertible-term policy is that insurers don't require a new medical exam when you make the conversions. If you die.000 to whole-life at age 28. was born. Vijal.000 of term insurance. rather than the protection they need. • The basics. develop high blood pressure or even survive a bout with cancer.000 at a time. The real issue is whether you'll need coverage beyond 20 or 30 years -. whole life insurance But it can make sense to combine term and permanent insurance with multiple policies or by buying a convertible-term policy and making a series of conversions over the years. You need more life insurance if you .000 and the cash value $475. As long as the insurer remains strong and solvent. and then gradually converts it to whole life $100. were expecting a second child and when they bought a vacation home. Your premium would gradually increase whenever you shift money to the whole-life policy. the benefit is projected to be $990. This kind of flexibility is attractive to Nirmal Bivek.000. if you need to protect kids with special needs who will always rely on you (or your estate) for support. permanent: Get the best of both Term insurance is popular because almost everyone can afford plenty of it.300. although that's part of the deal. topping out at $7. your spouse could lose pension and some Social Security income.

Permanent life insurance is more expensive As you might expect. more specifically. If you live past the length of the policy. whole. permanent or a combination of both? Let's look at each. Term life policies offer death benefits only. minus the amount 11 . permanent life insurance premiums are more expensive than term premiums because some of the money is put into a savings program. Related topics: insurance. while the premiums for term life increase. you get back at least some of. you (or.have escaped the debate over term versus permanent insurance. the amount you spent on your premium. You get this money back either by cashing in the policy or by borrowing against it. The debate is all about that cash value. variable and universal. dividends or both. family. because more money has been paid in and the cash value has earned interest. your first annual premium is likely to be much higher for a permanent life policy than for term. That extra premium paid in the early years of the permanent policy gets invested and grows. and often much more than. the higher the cash value. And the wrong kind of life insurance can do more damage to your financial plans than just about any other financial product today. the premiums for permanent life stay the same over the years. However. The longer the policy has been in force. the first and most important decision you must make when buying life insurance is: term. financial planning Few people who have bought insurance -. so if you die. policies. MSN Money Term or permanent life insurance? How do you know if you have the right coverage? Here's a quick look at all of the options: term. life insurance. So.or even window-shopped for it -. If you buy a policy today. How to spot insurance scams Permanent life policies offer death benefits and a "savings account" (also called "cash value") so that if you live. your family members) get no money back.Life insurance 3/16/2011 1:45 PM ET | By Ginger Applegarth. you win (so to speak).

The key is how long you plan to keep the policy." meaning that the dividends they earn can be used to increase the cash value and/or death benefits. (If you die. The reality is that there is not a simple answer. With some policies. You can choose for your premium to increase each year (annual renewal term) or to remain at the same amount for a fixed number of years. The big gray area is in between. health. traditional whole life makes sense. Most term policies offer both a current payment schedule and a maximum rate for each year. it's time to choose the type of policy that makes most sense for you." The fact is. Term insurance Term insurance is relatively easy. Types of permanent life The real wild card in terms of price is permanent insurance. Most term policies are convertible to permanent ones without evidence of good health.000 for college and your youngest child will graduate in three years. Most whole life policies these days are "participating. that's the best deal. Most people drop their policies within the first 10 years. but that's a different issue. Guidelines to live by when buying Even with all of these variables. If the answer is less than 10 years. because you're not likely to die in the next 20 years (you hope). because life insurance is not a simple product. The annual premium is guaranteed. but if you do your homework now. or that can be continued beyond age 70. If you need $60. the company reserves the right to increase premiums if company costs increase. the types of policies chosen. there are some guidelines you can follow. How to choose Start by assessing your needs with MSN Money's Life Insurance Needs Estimator. If it is more than 20 years.Life insurance your agent takes as a sales commission. interest and dividend rates. this assumes you keep the policy in force. Meanwhile. permanent life is probably the way to go. Once you figure out your needs. that shouldn't be the case for you. There are three main types of permanent insurance.000 of term insurance as a short-term hedge against your death. Of course. and more. Here is where you need an expert to run the term vs. If you are a conservative investor and also have trouble saving. You also may want to re-evaluate your estate plan. the proceeds are usually tax-free to your beneficiary. insurance company. decrease the premiums or be refunded in cash. you probably need permanent insurance.000 in taxes at your death. Categorize your insurance needs by their use. if your estate will owe $200. your health may be a factor in determining rates. depending on your age. At certain "re-entry" ages. permanent analysis for you. you may have to prove your good health in order to keep the lower premium. thus insuring that your child can finish his or her education. But "long enough" varies. With others. You can buy term insurance that stops after 10 or 20 years. "Buy term and invest the difference. term is clearly the solution. 12 . If you keep the permanent life policy long enough (and the market ever fully rebounds). it depends on how long you keep your policy.) The saying you always hear is. and there are minimum guaranteed cash values and death benefits. Traditional whole life: This type offers the most guarantees. you need $60. The gain is tax-deferred if the policy is cashed in during your life. because most policies have guaranteed and nonguaranteed portions.

some of your premiums are being used to buy death-benefit coverage and to cover other expenses (including sales commissions).000 upon my death. my cancer condition would be covered. No Insurance company will sell me a policy. if I purchase a return of premium 20 year term policy w/ a $100.000. check out variable life. However. universal life policies earn interest at the credited interest rate determined each year. although I will have paid out $3. especially in the early years of the policy.000. consider a combination term-plus-permanent policy. but here it goes again. With this type of policy. There are required guaranteed annual premiums and a guaranteed minimum death benefit.000 death benefit at about $26. but I receive nothing should I survive the 20 years.a return of premium term life insurance policy. especially now that I will pass away soon. life insurance option . this is at no cost to you. all of your premiums are returned. Universal life insurance is more flexible than traditional whole life. avoid all of the fancy riders. You can quickly compare quotes online. The amount is not taxable. you will pay about double the premium of a standard term policy. which suspends your premium payments but keeps the policy in place if you become disabled. Example: I purchase a 20 year term policy w/ a $100.000 because of the market returns that Ramsey said would be worth lots more. ===== I have mentioned this on another board. and you have to select the investments for your policy. but do consider the waiver of premium. when insurance-industry regulations changed to allow insurers to be more competitive with other financial-services providers. universal life is for you.240. After all. because premiums can vary from year to year and sometimes can even be skipped. I have a very big concern . ranging from money market funds to aggressive growth funds. albeit for a slightly higher premium. Life insurance should not be purchased on children as a way to save for college. However. I was told that it I have my old Cash Value policy.00/month . My savings went from over $750. but still a fraction of the premium of a whole life policy.000. I listened to Dave Ramsey's advice and I went out and cancelled my life policy and I bought a lot of Term Insurance.I used to own a Cash Value Life Policy.. Universal life insurance was developed in the 1970s. but is now worth $305. You get the same coverage.120 in premiums. Variable life: If you consider yourself a knowledgeable and risk-accepting investor. there is no guaranteed cash value. When you make your purchase.00 death benefit at about $13. A few years before my policy was about to expire. This article fails to mention the third. my term is expired and now I am uninsurable. I discovered I have cancer.Life insurance Universal life: If you need premium flexibility. but in the long run. Instead of dividends. If you find that you cannot afford all of the permanent insurance you have decided you need. What is your advice about how my plan worked out? 13 ..00/month . and make sure you (and your spouse) have all the coverage you need on yourselves before you buy any coverage on a child.00 at my death. There is no way that amount covers my needs. but at the end of the term. and better. The full death benefit applies throughout the term. Variable life insurance has the fewest guarantees and therefore offers the greatest potential for cash-value increases.my family receives $100.my family receives $100. However . Buyers typically are offered a variety of mutual fund accounts. Not an investment tool Life insurance should never be purchased solely as an investment. Universal life has maximum guaranteed premiums and minimum guaranteed cash values and death benefits.00. or I survive the 20 year term and receive the full amount of premiums I have paid $6.

Your health and age all come into play with life insurance. I too have just heard about Index Universal Life Insurance.000 in death benefit and pay in $18.737 and the policy is paid up and has a total death benefit of 1. Once their kids are out of school then of course focus on putting more in to retirement. That is why it is called "LIFE" insurance. They both are teachers and want to make sure their kids get to college if something should happen to them. Also. If you have life insurance questions. you're not going to go to your bank right? You would see a doctor. Most term policies are 20 . So. Life insurance isn't about investing. and then some. Start with a lot of term and investment. He fails to mention the fact of the possibility of death before accumulation is substantial. If I buy a 20 year term i will be 47 when it is up and if I want to buy another product for life insurance I will be paying more due to mortality. The whole life gives you a minimum 4% interest and above. I am 27 and in good health. The life insurance companies are the largest institutes in the World. I think it sounds like a wonderful idea. I do not agree with what the article is saying. == I don't exactly agree with this article. 30 years. if you were 10 years into it. and you still have the whole life in place to take care of death.552. I want to know why it's a bad idea. but with the Life Insurance I am promised a constant return.955? Now he receives a little over $80. your family.Life insurance So let met get this right. It would be wise for someone to buy a $25k whole life and a $100k of term. the cost will be unaffordable. 14 . each state is different with the cost of insurance. If you buy whole life you are garranteed the face value up to death (100% return) for your family.15 years too. I need a lot more reasons to tell my friend to cancel this policy just because you say that whole life is a rip off.30 years. If you need your sick. tell me where a savings account can do that. Once that term renews after 20. even bigger than oil and that to me is a solid company to be putting my money on rather than a stock market where you have no garranteed return on investment. the term provides an instant nest egg while the investments grow. I am worried that investing in Mutual funds may not work the best in 40 years when I want to retire. Some companies offer paying a whole life in 10 . If you invest in stocks. you might get 4% but then you have a capital gains tax. Borrowing against your whole life with the cash value is "tax free" it is your money to take out after retirement and then you still have your cash value to leave for your kids and loved ones. you're saying that it was a bad idea for one of my dear friends to buy a whole life policy through a mutual company 24 years ago for $700. your possessions. kids. etc.880. you could potentially be covered for all of your life needs and not have to worry about paying it while you are at the retirement age. talk to someone who is licensed in it. especially when the market crashes. all my investment and insurance money when I retire then die. You would be foolish to buy a $125k of whole life. You would be paying the cost of a 35 year old instead of a 25 year old. cars. They cover you for the mortgage. Chances are the cost you are paying now is more affordable than if you started a new policy. You can cancel that policy. burial needs. I wouldn't suggest cancelling any type of life insurance unless you are going to replace it or supplement it with something else. Just a few thoughts.000 a year in dividends and this policy was used with money that would have gone into savings because of security of principle. It's about protecting what you have. in 30 years. I'm sure they would love to talk to you and they can answer all your questions or concerns. That is just my opinion! I disagree and agree with what Dave is saying. your home.900 a year and now have a total cash value of $1. This is just a thought i am not a guru like Dave. Example: 28 year old couple with 2 small children.

000 whole life policy. Now why does anybody want to throw their money away to these WL Company? Buy a 30 year term policy. Same guy.000 set to directly pay her funeral cost. whole life does that.000 whole life policy with New York Life and she had set it up to be put in a trust tax deffered. I'm talking about WL and UL with option A. invest the $80 per month.$8 more then both of the whole life policies. term life companies do the same thing with far less premium dollars and are still successful. They guarantee that your investment will not fall when the market drops and will always gain at least 1%.Life insurance I am sorry to say. Bob March 20 2011 10:00 PM I get tired of people of people playing on other peoples fears. The key is it will not grow more then 15% when the market is rallying but it is always growing. now times that for 30 years. well the stock market bounced back! Insurance companies are in the business to make money. I set the maximum amount and they set the minimum. but my mother had a 100. the life insurance company will keep. Now here the figures. Derrick March 21 2011 1:25 PM @Bob. Dave Ramsey fan March 21 2011 10:24 AM Could you recommend some companies for term life insurance? Say a 30 year term? Sure would suck to pay year after year thinking you have protection just for the company to close down. I have a $100K 20 yr term that costs $53 per month . Because of my age (55) and medical condition. so why does 15 . I just learned about a 7702 used as both insurance and retirement. They state you pay taxes when you put in and then you won't pay higher taxes when taxes go up to cover our national debt. Cash Value. Is it wise to put my money into this type of insurance policy instead of a Roth IRA? since it is [re taxed then I won't have the same requirements to withdraw a certain amount so Uncle Sam can tax it if I do not need the money.is not worth it and term is better? I purchased 2 whole life policies whose death benefits are $20K. Due to interest accrued. and they make a ton with whole life and they invest in the stock market.000 dollars already. use $20 for the policy. In this case I think I made the right decision. $30. they are less worried about a life long financial plan. Total costs were $4656 for one and $6048 for the other. each one's cash value is over $10K. $30. Remember. So I do not understand how you people are saying a 125. Dave recommends Zander Insurance for the best term life ins rates. some say that others cannot be responsible to invest the other 93% and some say that they did and then the stock market crashed and they have nothing. and death benefits are about $22K and $25K. and is only 70 year old. they call it whole life. People in reality are looking for a big check should someone die. 60 something set up to go to me and the rest went to a loan she had taken out. he has paid more than his death benefit on this policy.000 and his family will get the $30.000 death benefit 30 year term will most likely cost $20.000 Death Benefit will cost about $100 a month for a WL policy.5% return interest. the same $100 dollar. If he live longer he will end up paying close to $100. she had 10. he will have about $42.998 dollar in 30 years. the guy would have paid out $36. Both policies have been paid off.000 when he pass. because he will have to die before the life insurance will not pay out. JON March 19 2011 9:58 PM Do the math and stop debating: An standard price for an 40 year old male. Even with just 2. $100 times 12 months will equal $1200. that is more than the death benefit. I'm no longer paying anything and the benefits are continuing to grow.

Buying Term is the smartest way to go. LI is not a savings or retirement vehicle due to the exorbitant costs and rules they come with.Life insurance he need to cont. Why would you even let someone else can control when you have the option to control it yourself. use your policy and I dare you. Dont complicate things. but if you do your investing you wouldnt have to worry about that would you. The decision should be made by each individual with the advice of a good agent. 16 . you will be exhausting your personal resources in a catastrophic situation leaving your family with bills. Some agents sell the Accidental just to make the Death Benefit look attractive so that they can fool people to buy their policy. Marvin Green February 14 2011 10:33 AM There are advantages and disvantages to each type of life insurance. just a concerned parent who has been through life changing family medical situation. your car and homeowners runs out to. plus he's still alive. They should put your interests first. If anyone here is reading this. I am 34 years old and just purchased a 15 year term policy with 1M coverage for $270/year When the policy expires in 15 years. I feel you. That was just a little example of WL vs Term. The best thing to do is to be sure the company you are talking to is non-biased.000 of about $100 per month. I'm not talking about Whole Life with Accidental Death Benefit okay. The agent should always listen to the needs and concerns of their client and recommend which product they feel is best. discover you have cancer. needs to really evaluate how they think. Chris March 10 2011 6:14 AM Kim. Laura March 04 2011 11:34 AM Bottom line insurance is not an investment.children and etc for as long as you live. He won't have too. The price on these might be a little off. There is no other opinion about it. It should be the insurance company's first priority to make it easy for us. The fundamental purpose of life insurance is to ensure the loved ones that rely on your income are covered should you die. Anyone who suggests that any other type of insurance is beneficial is either an insurance salesman or a financial illiterate. Unless! you think that your going to have a mortgage. not their commission. oh big deal. For someone to say cash value life insurance is absolutely the wrong way to go. I am not a life agent. The decision should be made by each individual with the advice of a good agent. have a brain tumor. There only answer is that term runs out. but not much. If you happen to pass away during the term coverage period things would be ok but if not you would have been a much more responsible parent by planning to have some permanent life insurance in force at a young age when the premiums are less costly. Trust me. Majority of the agents dont even understand what they sell. with his life insurance.debt. I have check around and you can too if you don't believe me. For someone to say cash value life insurance is absolutely the wrong way to go. I was confused to. Agents want more money companies want more money its the only reason why they sell. Check a price on a true WL policy that cover 100% of everything and it will cost a person around 40 and a DB of $25. The agent should always listen to the needs and concerns of their client and recommend which product they feel is best. do the math and ask yourself " Are you been ripped off?" ss March 18 2011 3:08 AM I can't believe there are people still advocating any life insurance other than term. but u renew it. my net worth will be sufficient to cover my income for my wife and child. Chris February 09 2011 9:58 PM There are advantages and disvantages to each type of life insurance. Even with medical coverage. David March 11 2011 11:51 PM This concept is great in theory but in reality it doesn't plan for the catastrophic year that you need a kidney transplant. The problem is alot of ppl findout to late. The military sells all TERM! Its meant to protect you while you have responsibilities people.000 to $30. needs to really evaluate how they think.

I have no choice but to drop it. This will allow you to transfer your cash value without incurring any penalty and it helps lower the premium of your new policy. options for inflation adjustments. Now how do I get out without losing my shorts? What should I do with the savings in the whole life? Do I cancel the product? Jeana January 18 2011 8:41 AM In response to Eric: "I'm 40.This policy was with AIG. If you think you might need the insurance for life. right? No.how is their payment history? their payout history? etc. If you know you're only going to need the coverage for a specified duration you should start looking for term or a reduced guaranteed universal life. I lost my job and have health issues. Now that I am about to turn 79 my premium is jumping from 123. I am still alive and my term policy is expiring. Every policy has it's merrits. To those of you that are young. If the company is at the verge of default. This will tell the insurance company to print you an illustration that will show you how the policy will perform assuming you continue to pay the scheduled premium. Don't think that just because you bought a whole life policy that you're being ripped off. Buying term and investing the difference doesnt always work as some may imply. you will not get your money back. Now.00 a month to 1245. Let's ask these 88% what happened to buy term and invest the difference? Haven't their savings grown that they no longer need any survivor pension? Again the answer is a resounding NO! People should make decisions based upon what happens in Real Life. you really need to compare apples to apples with insurance quotes. To get the cash out of your policy you must surrender the policy and pay taxes on the gain. When I die. call your agent and have them order an inforce illustration for you using current planned premiums. The market dropped twice and I lost big. Usually the quotes are based on "preferred plus". In theory "buy term and invest the difference" works. not in some academic setting. In reality it doesn't. Another fact: 88% percent of people who are married and retiring with pensions elect a survivor pension. Richard February 02 2011 5:19 PM Hi All. etc. even if you have to pay a bit more (think Starbucks vs convenience store. Good luck! Lisa January 13 2011 3:21 AM 17 . I highly suggest a plan B.00 a month It just makes me sick. my wife looses the house. Stephen February 01 2011 1:23 PM Jeana. You may fall into the standard class. robert fellers January 18 2011 7:00 PM Ok so I have fallen for the ridiculous rip off product. purchasing 20-year term insurance. If this doesnt work for you (it doesnt work for most) you are in big trouble. Best of Luck! JW January 31 2011 11:12 PM 10 years ago my wife and I bought a 100. they didn't. you should check on it at least annually to make sure it's going to do just that. or because they never got around to investing the difference.000 policy. Then you also need to look for the history of the insurance company (how long in businee) and their financial risk picture . a survivor pension is another form of life insurance. Then there are riders. If you know you're going to want the policy to last as long as you do. I'm finding I can get a $1M policy for $500 $2500/annually.Life insurance Chris February 09 2011 3:00 PM I bought term and invested the difference.000/year ($88/mo) in premium per year. So going with a reputable company is preferred. Why would I spend a penny more than $500?" Eric. something only the most fit athlete may qualify for. Or you can transfer the cash value to a reduced guaranteed UL via a 1035 exchange. Either because their investments did poorly. which is most likely closer to $1. 40% of 15 million online inquiries is alot of REALITY as opposed to theory and speculation. I did some research and here's what i found: over 40% of online life insurance inquiries are done by people age 50 or older!!! Why are these people searching for life insurance so late in their life? Didn't they already buy term and invest the difference? They should have accumulated a tremendous savings by now.

when you get your payouts or start drawing on cash value. They are not trying to give you the wrong advice. I also use the cash value to pay my premiums so that I am not out of pocket one cent. remember that gets deducted from the payout because you "owe" that back to the insurance company with interest. and now I find out my life insurance is worthless. by the 20 yrs end of my policy I will have more than that $3 million dollar number I needed to live out the next 20-30 yrs of my life. Agents who sell this know this. sometimes they get into cookie cutter mode and suggest the same plan for everyone. I know people who blow 100. and I don't know what to do. I've tried to do everything right financially all my life. Remember. and even attorneys can and will give you bad advice.. I feel as if Mass Mutual has defrauded me.000 as of today. including 2008! The death benefit is presently over $1. and that will continue to go up! I'm only 56 years old. what does that do? And when you're gone. but I hate to let go of something I've invested in for over 30 years. because they will not pay you anything if you die before that 3rd year. and I don't want to ever do business with them. No life insurance should be used for retirement! I don't care that I outlive my Term Life. but those who are 26 or 30 die every day. A lot of these professionals will preach to you their philosophies with the best intentions. I have been using Tactical Asset Allocation techniques to invest the cash value in my policy since 2004. you don't get both cash value and benefit payout with any policy.one in college and one in grad school.Life insurance Wow.1M and the cash value account is worth approximately $305. Oh and not to mention god forbid anything happens to you the first 2 yrs of your policy. And no. its amazing how much people don't do their research.000 Whole life. I said every track record recorded on Mutual Funds shows 12-14% growth not 4%! Whole life stays the same if you don't borrow on it. and I'd have a great savings as well as life insurance. I'm 41 I need a minimum of $3 million dollars at age 65 to retire comfortably with the inflation of today. Tracy January 12 2011 6:50 PM I have $1M of variable whole life insurance since 1994. Karen January 08 2011 7:23 PM I'm 40.000 dollars in a 2 yr span of time then they had nothing. Whole life is ridiculous. but I wouldn't want them to have that burden. I'm so upset that I could cry. The avg funeral is 20. It is never as simple as "the experts" would have you believe. This is possible for anyone to do and maximize what variable whole life has to offer. I have been averaging 23% per year and have not had a down year so far. and I wanted to protect them at least until they get finished with their schooling. I'm in good health as of today. who pays for that? When you don't get anything from your place of work but $200 to help cover costs. and it seems that there is NO CASH VALUE left and the Cost of Insurance has gone up.$2500/annually. loan officers. and they could get loans. Univeral life. Variable life doesn't cover nearly the expenses it will take for your wife or significant other to take care of the children you left behine. JC January 11 2011 5:05 PM I am so upset! I bought a universal life policy from Mass Mutual in the early 80's for $250.000 dollar policy is by far not enough to retire on. I'm finding I can get a $1M policy for $500 . I have to pay the $150 a month.000 dollars. 18 . What do you think your children will need if they are young now? We don't think we will die. I need some advice badly about what to do next. I plan on continuing my methodology until age 65 upon which time I hopefully will be able to withdraw approximately $100K assuming I live to age 82 (currently 58). and it isn't worth even what I paid for it 6 years ago. The point is. But you forget about inflation and that 190. Investing is the only way to go because right now and every. Why would I spend a penny more than $500? Eric January 06 2011 7:35 PM Insurance agents. and my investments aren't making anything. They are on scholarships. Not to mention. you still have 20 more yrs to live! Most don't think about that either. Everyone’s situation is different and your Advisor should treat you and your situation as a unique one because it is. when you borrow "your own money" by taking out the cash value to invest or pay bills.000 coverage for $50 a month. The real estate market has caused me to lose all of my equity in my home. I'm a single parent with two boys. and now I find out it was wrong. Financial advisors who want a high commission just like the agent know this as well. Just got a letter saying that now I owe them $150 a month! I called. I suppose. purchasing 20-year term insurance. if something happened to me. Yes. with out knowing your personality or habits. Was told it would build up cash value. $100. So in a sense "your family pays that" because they never receive it with the payout. so for me to keep the policy. financial planers.

What if you still need life insurance at the end of your 20 yr term expires? What if? The life insurance may be originally purchase to protect income for your young family. have high cholesterol or blood pressure? IF they're insurable.00 a month. The need for life insurance in 20 yrs may change from protecting income to protecting debt. Every time I do an analysis of the growth of the cash value account of a particiopating whole life policy from a solid mutual company to a bond fund for a period of at least ten years it does very well. With whole life. What if they still NEED insurance and they've developed a heart condition. or there's a black swan financial market event. their old $20/month term policy may cost $3-400/month or more. Todd December 19 2010 11:18 PM 19 .Life insurance Cedric January 05 2011 1:20 PM Term insurance is a great product. ages 70-100 the years most term polices will not reach. car loans. Will Harris December 28 2010 6:44 PM To all the life agents out there we need to stop the scam of whole life insurance and do whats right for the people not for us agents!! insurance and investments should always be separate. they plan to. young children.$600 per month. but if you miss an IRA contribution or make a poor financial decision. universal life you are getting the worst of both worlds. Any other reason is simply insurance sales nonsense. You buy insurance to cover your family in the case you should die before they are financially independent. However I also have Permanent Insurance to cover me during the years when I will most likely die. They make virtually nothing on term insurance. but just don't. or have an unforeseen health or disability condition without proper coverage. they hope to. I have an ample amount of Term Life insurance to protect my family in the event of my untimely death. Is it way out of line to suggest that a 30 yr (who buys a 20 yr term). medical debt. may still have home debt.80 a month. Yes I sell it and will buy it myself unless some genius on this forum can demonstrate that I am wrong. What Dave says is exactly correct. continuing to protect income for your spouse. k December 23 2010 9:34 PM Don't listen to these comments from obvious insurance salesmen. Of course a stock index fund does better but that is a false comparison in that stocks have an entirely different and higher degree of risk. you will probably be ok. I agree with the first post from Jake Stuart. It now has a cash value of about $19500. Life insurance is INSURANCE not an investment. If i draw on it when i am 60 years old it has a garante of $1450. will most people still need life insurance around retirement age? I believe they will. you shouldn't buy whole life. and a wife that shares income with you to pay the monthly bills still at age 50??? Is that even possible? Seems pretty common nowadays. Because of these REAL risks. I say that most people should have term insurance for their debts and income replacement and partner it with a smaller permanent life product for there final expenses. business debt. put on 40 lbs. Also. The question is. but whole life insurance first year premiums basically go straight to the salesman.00 if i cash it in. Cedric January 05 2011 1:03 PM I agree that if you have the discipline to do everything Dave says. equally out an asset heavy cash poor estate. Jake Stuart January 03 2011 12:50 PM Dave I have a whole life policy that i bought in 1987 when i was 24 years old. mixing your insurance and with your investments is a sure way to have no idea how your investments are performing. but it is not for everybody and should not be sold to everybody. there is still a place for permanent life insurance. If you do EXACTLY as Dave says.The policy cost me $61. Should i cash it in now or just keep it and draw on it later ? mike caldwell January 02 2011 4:58 PM Show me the numbers. Buy term and invest the savings. Whole life in the cash/bond end of the risk spectrum of my portfolio asset allocation works for me. you may be in a very helpless situation. My concern is the high percentage of people who will not do everything Dave says. The key is to understand what your buying and if there's a need. credit card debt. After age 75 most Life companies will not grant you Term Insurance and if they do your premiums will be $300 .

iul.. if i am in a 30+% tax bracket would i pay more in expense to maintain my cash value policy or in taxes of my "self insured" investment portfolio. however.How much permanent life insurance does Dave Ramsey own? Kevin December 16 2010 2:52 PM Considering only one 'type' of life insurance can be horrible advice. the needs of life insurance are not the the same for every person and although at times we need life insurance for different reasons with out a doubt we need it at some point or another. encouraging people to purchase a product that only pays out 3% of the time is over-simplification of a very important financial planning tool. please consult with your financial adviser about your personal needs. As long as you pay the premiums you are certain of a payout on this insurance product. B-do your homework it pays to have good advisers with your best interest at hand not someone who will give you the lowest price. radio and tv.but right now. lets face it we will all die at some point whether old or young.at the same time more than 98% of term policies dont pay a benefit. try getting a tax free CD at your local bank for that... The main reason to get a permanent plan is to be able to keep it all the way to death and get a definite payout for the family you purchased it for in the first place. People almost never buy term and invest the difference.. However. term insurance is for those that have hi needs of protection and low financial resoures.Life insurance I appreciate the fact that Dave provides a simple method for helping people control their debt and over-spending.Life Insurance costs money. the not so wealthy need it to replace what will be missing if they pass away. and right now that money is tight. Universal life with the option to pay all the cash value plus the death benefit is available. word of advice to the consumer is A-stop believing everything that you hear and see on the internet.consider that different types of Life Insurance exist.especially if you need the coverage. i am an insurance and financial service professional and i do not believe cash value is for everyone but it does have its market and unforutnately most people who do own them dont fully understand the pros and cons of the poloicy and its structure.and if they do that goes to probate when they die.. A permanent plan like whole life or universal life is a level premium that does not go up and does not end... but since nobody complains about how much you make. but you know you will die. expected or unexpected. on the other hand perm (cash value) is for people with an insurable need and also an asset preservation need. the wealthy need it to help protect their hard earned wealth and estate. or vul. but there are rare exceptions to that rule. and a family or charity can and typically always benefit from it regardless of where they are financially at the time of insureds death. If it is the longest term (sold by most companies) of 30 years and you purchase it at 30 you are without insurance at 60 if you have uninsurable health problems. etc) are just that . however i do think your are a bit misleading in regards to life insurance. Don't build your financial foundation on a product that fails 97% of the time! There is a reason that term insurance is CHEAPER than whole life insurance! WOULD YOU BUY A CAR THAT ONLY STARTED 3% OF THE TIME? One final question.. One thing I haven't seen anyone mention is that term insurance expires at the end of the term. You don't know you will have a car wreck or a house fire.. This policy is currently paying 4 1/4 % interest. Brian December 10 2010 11:28 AM Dave i do appreciate your help and guidance for the hardworking middle class individual.because trust me you are shopping for the lowest overall cost not price.features that do affect the total cost of insurance.don't butcher or praise a product that you know nothing about. Know any cd's paying that right now. the best term policies on the market in my humble opinion are thoes that offer a ROP rider.. Commission affects cost too. If you purchase this at a young age it is as affordable as term insurance.. that an indicator that you may not be in the market for a ul.. Another simple idea. cash value. flexible death benefits. c. just because a person is famous does not make them credible for your personal financial situation.. Sure.and those features (invest subaccounts.. IF YOU CANNOT OVER FUND THE POLICY THAN YOU MAY NOT WANT TO OWN ONE.. Josh December 10 2010 10:31 AM I too sell life insurance. so then you can have the coverage and if it does not pay a benefit your still not throwing money away... don't complain about how much your agent makes. chash value police not only protect the insured but also the wealth that insured worked hard to realize. both term and permanent insurance has its market. layering Term and another Perminant coverage are great ways to perminantly protect families. ask the right questions and all the answers will be given to you for your discernment of what is best for your personal situation now and in the future.. Charlotte Dillman December 09 2010 4:35 PM 20 . lets be clears here. I'll concede that most Whole Life clears about 3% on the average. good luck.

live4divn November 20 2010 9:14 PM 21 . then why not funnel the cash into a policy paying 3 or 4% interest? As to the idea of self-insurance. What goes around comes around! nik December 09 2010 10:17 AM I would appreciate an analysis of the military's survivor benefit plan (SBP) that is offered to retired military in comparison to term life insurance. matt November 28 2010 6:18 PM It all depends on the policy.40 from Northwestern Mutual before I went into the military in 1970. whole life insurance will still be the better investment. As for self insuring. it's ideal for those who have no risk tolerance and perhaps have cash sitting in a savings account earning close to no interest. That's about a 6. For instance you say that that the family can't get the cash value in the policy when the insured dies. Regardless of how you view life insurance as a savings vehicle (not investment) do you own permanent life insurance? You are obviously going to have some estate issues at some point in your life and I certainly hope you are not addressing this problem with term life insurance. VUL and whole life commissions. Permanent policies make the insurance company bear more and more risk as you move from VUL to UL to Whole Life. In 2010 it has a cash value of over $40. While your advice is true it's not whole truth. and perm is appropriate for others. of which only about 2% of policies pay out. especially if the person in question dies only a few years into retirement. and can be worth exploring in a multitude of different situations. they WILL have to pay out if you die.9% annual return. Andy December 07 2010 1:10 PM Dave much respect for what you do. permanent insurance has been oversold by shady agents who are attracted to the higher UL. Additionally. because. is not an intelligent decision. Yes. and I'm curious as to what Dave and his staff think. However I sell life insurance products. as such. That's why you buy them early in life and "lock in" a good permanent rate. I understand your advice is meant to appeal to the masses but I find the statement regarding whole life insurance as an irresponsible one on your part. If you are a wealthly man I would hope that you have some of your fortune tied up in permanent life insurance which you probably do.Life insurance Its so funny that these cash value agents think they know more than you Dave! Whole life is the biggest waste of money ever! I dont know how you cash value agents sleep at night knowing your ripping off hardworking people. In which case. there are some pretty bad policies out there. In terms of the CV investment aspect of UL and Whole Life policies. but in the long run we'll all be dead. the ones of us in the finacial industry know this all to well. The amount of lowrisk resources someone needs to have on hand to maintain a spouse's lifestyle is often a million to several million dollars. they're nominally more expensive. There are only a handful of mutual funds still in existence from 1970. in the long run. The way I think about it is: who do you want to bear the risk of insurance if you die? If you buy term. This is not true. By listening to you I wonder if you really do real research or are you just repeating what somebody sold you? Maurice Kemp December 05 2010 5:09 PM I bought a $10. And there are some pretty bad agents who sell them. Don November 30 2010 11:41 AM Dave you are obviously a wealthy person and my hat goes off to you for the assistance you provide people in making financial decisions. There are UL policies capable of doing just that. better than the S&P 500 or the Dow 30 did over the same period. it is no longer feasible for most people. In fact. not the insurance company. then YOU bear the risk. But it has a place. that's all well and good to just state that that's possible. For sure. most wealthy people created wealth by making financially intelligent decisions and self insuring. the market will come back. When you factor it into retirement planning.000 whole life policy with an annual premium of $193. and considerably better than the go-go mutual funds of the 70's did (they went bankrupt). I think you may be doing a lot of people serious damage with this buy term and invest the difference. A lot of retirees struggle with this. Yes. the joint-and-survivor insurance that's used in estate planning by definition has to be permanent. If that person needs life insurance.000. Term is appropriate for some people. Permanent life insurance can solve problems no other financial product can solve. As such. buying term gets geometrically more expensive as people get older. and we all know how the new funds created in the last 10 years have done.000 and a death benefit of over $68. in my opinion.

this is the only significant one which has doubled without diving. Travis November 17 2010 11:40 PM I love Mr. my telephone number NEVER changed. but if I can 'invest' as much as I want with no tax consequences and have a guaranteed return. and with the company I represent you can take the cash any time you want no questions asked. do NOT use John Hancock! I filed 2 changed of addresses with them. etc. that is a horrible improvment. Not a dime in taxes either! I'm not a banker but this sounds pretty decent to me. Don't think and assume. There is no guarantee they will make money. Tim November 12 2010 3:08 PM What ever you do. but sign them up for something else. Whole life becomes a real value as the years go by and it is for life. Of all the investments family members made on my behalf. Not the fancy illustrations. Of all the investments family members made on my behalf.Life insurance My parents purchased a modest whole life insurance for me when I was a baby ($10 a month for $30K coverage). I called them after I realized this.5% is all tax free growth. Most people have lost a ton in the market. Read your contracts. After which there will still be some need for life insurance... Mitch November 16 2010 3:37 PM My parents purchased a modest whole life insurance for me when I was a baby ($10 a month for $30K coverage). Al November 15 2010 12:02 PM so Al has a 4000-(120*28)= 640 dollar gian over 28 years. this is the only significant one which has doubled without diving. By no means should this be a primary investment tool. If all you can afford is term it is better than not having life insurance. Your families are depending on it. Also. Sad. Plus. do yourselves a favor and read the contract. The catch is most agents sell option A. What happens if you die after the market tanks? If you lost money or saw your 401's dwindle to close to nothing in the last few years . whole life is absolutely terrible. how is that bad? Joseph November 17 2010 12:42 PM All I know is that my dad put $110. Look at the inevitable death and taxes then choose what makes sense. They will tell families what they want to hear. never received our annual bill. Al November 15 2010 12:02 PM A couple of flaws i see in this buy and invest strategy is most people don't have the discipline to save and generally will put it of for oh say twenty years. I'm sorry for you. Don't look at possible returns on mutual funds. The government can't touch it. The mutual fund example does not consider taxes which is also risky thinking taxes will not go up in the future. While I certainly won't rely on it for retirement.I think you know the answer. There is an option that allows your beneficiary to receive both your cash value and death benefit at death. Before anyone thinks they have all this money built up. Go to http://lifeinsurancemn. but tell you you are getting both. Buy and hold or income averging is a losing proposition for most people.000 into a whole life policy ten years ago and today its worth and today its worth just over $181k. taxes. While I certainly won't rely on it for retirement. the cash value that is growing at 4. I am now approaching 28 and the surrender cash value is over $4. AVOID JOHN HANCOCK!!! Another thing I do is have multiple life insurance 22 . The other issue is mutual funds are basically gambling. where as people with secure life insurance have protection for their families and have had consistent predictable returns and protection. Read the contract itself. where you receive only the death benefit. However some of what he has written has changed. For what you pay and actually receive. ViroSpider November 18 2010 12:10 PM I don't know if it has been mentioned yet. If you believe otherwise. but I'll just throw this out there. Could they call me? NO. I consider it a safe resting place for the money.. I'm seen it ruin families lives first hand. My job is to fix this crap. there is an option that allows your beneficiary to collect the death benefit and cash value.org for some term comparisons and then take a close look at whole life products.000. Not too shabby. term is temporary. However. I'm a perfectly healthy young man and will take my business elsewhere as of today.000. a year later and now they want $2400 to reinstate!!! I talked to a rep and they said that John Hancock has ON RECORD that I requested an address change TWICE. I see it everyday. I am now approaching 28 and the surrender cash value is over $4. Ramsey. Factor in safety. they'd rather lose an account. I consider it a safe resting place for the money. For example. creditors can't touch it.

some policies pay your beneficiaries death benfit plus cash value. in result of which you won't be able to pay on time. that you're saving for "retirement". the premium has only been credited on the 5th day or later or not at all. He also never talks about addressing estate planning issues. you fall victim to card fraud or if you have been overcharged. as you did in this article. Cash value is actually trash value! Did you know that your cash value account. you will be at risk to loose your "money back" 216 times! You can not pay more money than you are due to pay and therefore can't back it up or buffer it. What you need is retirement money. How hard is that? Man. for 18 years and you pay monthly premiums. That means. The only benefit paid to your family is the face value of the policy. Term insurance is a great tool to have for certain families and so is whole life for certain families. talk about frustrating! Craig November 10 2010 5:22 PM What Dave Ramsey is saying is 100% correct! Listen guys. what he neglects to realize that people very rarely become selfed insured even if you buy term and invest the difference. So the life insurance company is not keeping your money or "ripping you off". But Dave does a very poor job in telling this because whole insurance is not good for the market he is helping. I'm glad I didn't by only term and invested the difference.. I rather sleep at night knowing 20 years down the road the whole Life I sold implodes on it self since they are annual renewable terms and the cost of insurance surpasses the premium paid and all the cash values are sucked out of the savings protions to pay for the life insurance protion. you risk loosing twice as much! You will only get your premiums back. Learn from the man. for each premium you pay. If you do NOT have those responsibilities then you don't need life insurance.5% guarantee).e. within the life term.e.. or if any other mistakes or unforeseeable events occur.e. the $125. Sell term I can't eat but sell whole life I can't sleep. All I know is that the only thing that has made money for me over the last ten years is my cash value life insurance (it has a 4.. Everyone's situation (risk tolerance.. How does 20 year term insurance solve any problems then..Life insurance policies so while JH's incompetence has cost me that account at least I'm still covered by a firm that knows how to do their job.. Look it up! You only need insurance while you have responsibilities (i. children. stays with the company if you die? It's actually called "Cash Surrender Value". looks to have been done with too wide of brush. on the 4th day of every month but on one occasion. or if the bank canceled the direct debit or your overdraft for whatever reason. Whole Life is a rip off. compared to a normal Life Term for the same amount of cover. And as another poster mentioned. Leaving a family without when they need it most. Mortgage. he is the financial expert and dealing with financial experts myself this is absolutely true. the whole policy will instantly terminate after the 4th day of that very month and you will not get the premiums back. Not for the client! shazam65 October 29 2010 3:26 PM What Dave neglects to say before he says " the savings you finally build up after being ripped off for years don't go to your family upon your death. if you don't cancel the insurance. debts). throughout the policy. To make matters worse. pick up the phone. your "money back" will be at risk 12 times a year for 18 years. he said it best! JMarrero November 09 2010 2:15 PM @Michelle (October 21 2010) Yes you can get a Life Term that will pay your premiums back but you will pay a monthly premium which is twice as high. And to note that if you did buy term and invest the difference for the last 10 years your return would have been in the negative or break even at best case. you will loose everything! IK November 07 2010 11:28 PM What dave is saying is probably right for the type of people that need his help. they will only provide cover until the next premium is due. which means.painting your picture. goals.000 in our example" is that the UL policy in his example has a level premium and to do that it's only purchasing (cost of insurance) insurance equal to the difference between the cash value and the death benefit. that is not an issue because you will always pay on time but think twice! If your policy runs i. needs) is different. Dave you need to narrow your brush a little bit. turk October 28 2010 6:52 PM 23 . So if your premium is due i. You might think. George November 06 2010 9:40 PM Dave Like they say in the insurance industry. Its a win win for the insurance comapny. If..

Buy term and invest the difference could be the worst advice I hear.which are tax deferred but taxed upon withdrawal. Cash value doesn't start snowballing in most policies until years12-14.and goals. Uncle Sam can't touch a penny of any distributions until they have surpassed the premium amount. please go the 529 or Coverdell route. One is that cash value life is very tax favorable. They both always fail to mention a few undeniable truths. I believe cash value is great way to attack college funding. that is a perk to whole life and UL. grandchildren. Michelle October 21 2010 2:31 PM $7/month for a $125K policy on a healthy 30-year-old male sounds right on the money. We live in a very certain tax environment and we know exactly what tax rates will be in the future.Life insurance If you do not want to leave a legacy to your children. don't buy life insurance. A rule of thumb I use with my clients: If you have to think and mull whether a ballplayer is a hall of famer. not your own gain in investment income. I'm a healthy male in my mid40s and I recently bought a $500K policy for $28/month.don't! Rich October 17 2010 9:08 PM 24 . First of all. Rosalie Parker October 28 2010 1:09 PM OR!! You can get a Return of Premium term life insurance policy that will PAY YOUR PREMIUMS BACK TO YOU. The percentage of death claims paid out on term policies is staggeringly low. whole life and UL's do have some great cash value build. which gains are taxed annually.he aint. However he and Ms Orman are always too hard on permanent life insurance. or charity and want more of your assets to go to the government in the form of estate taxes and income taxes to your beneficiaries. debt. and to renew is ungodly expensive 20 and 30 years down the road. With private insurance a person can terminate the policy and get the cash value. AJ October 18 2010 4:28 PM I am a fully licensed financial advisor and soon to be CFP (hopefully) and I've enjoyed reading everyone's posts. When your family applies for financial aid. Yes. let me preface this by saying that I am a huge Dave Ramsey fan. Most middle and upper middle class Americans have too much of their money in qualified IRAs. comparing Term and Permanent is silly. Life insurance is used to protect your family. If your child is already over 4. not its main purpose.000 term life policy for $7 per month. you get your money back from the premiums you paid. However. not using life insurance should be the decision of the consumer and in concert with what their family values and legacy planning goals are. If I knew then what I know now I would have put that money in a 401K instead of life insurance. and kids gone yet. I'm talking about we should be able to get the cash value that we invested in the policy which means the insurance is unaffordable to most of us. but everyone should not NOT have life insurance. your life insurance policy is only as good as the company who sells it to you. JoJo October 19 2010 3:44 PM I'm not real sure where you're going to be buying a $125. CB October 28 2010 3:30 PM I have been purchasing additional insurance from my job along with the insurance they provide. Just remember every person and every couple have a different set of financial hurdles. Also. That COULD be a huge factor in a financial aid qualifying situation. If you live to do all that. No. and if you even think for a second you would have a challenge at some point paying for whole life. Cash Value Life and Roth IRAs are a nice tax favored way to supplement retirement. I think the policy should be taken out right when the baby is born. But. And if you think term insurance makes economic sense to someone who is at the stage of their life where they are concerned with transferring wealth to future generations.situations. when the policy expires! Protection of a policy in case of your unfortunate demise and you don't have all the bills. life insurance is not for everyone.yet we can't get back what we invested. none the money in cash value life can count against you. so we are unable to keep up the premiums -. because people outlive the term. Remember. The primary reason it is useful for college is that cash value life is not considered an asset. and in mutual funds and the bank. Secondly. then you are wrong. I don't think it's fair that when you leave a job you can't get back what you paid for a work policy unless you continue to pay the premiums after you leave the job. Bottom line is that the decision to use life insurance vs.

I will pay in 240k over 15 years. I just purchased a U Pay 15 yr for 1 million dollars. could not produce payments to policy holders that has been paying insurance premium for years. Who gets it? I had a chance to become an insurance agent 30 years ago. etc. Remember Katrina? Insurance companies for some reason. It is not retirement. Troy Yeaple September 20 2010 11:54 AM Dave. You have to decide what your needs are at the moment in your life and go with what you can afford these days. Term and Whole Life have their own benefits. The #1 Insurance Company has an amazing WL product for protection and the rate of return is a lot more than what was talked about. The next time you hear 'buy term and invest the difference' ask them to produce one person who has done that. I will have a guaranteed cash value at 65 years old of 550k. Matt September 21 2010 7:44 AM Blanket statements are never a good! To say that whole life insurance is the worst investment ever is an obvious opinion and bias. and surely not ours.Life insurance In my honest opinion.000. I have seen some very wealthy sophisticated investors use it successfully and some middle income as well so it does work when set up and used correctly.also only 1% of term insurance actually pay a death benefit so who is really getting suckered? Also each policy should be custom fit for each family depending on where they are at.000.. it is life insurance. More than 90% of life sales are universal and not whole life and to paint them as one in the same is a major mistake and one that is made often. . buy term invest the difference doesn't work. Sal Azevedo September 23 2010 7:06 PM It seems that everyone has their own opinion about life insurance. I am a 24 year old planning for my retirement.) Loop holes in policies. Read before you sign. The difference between whole life and Universal are 2 different debates. UWL etc.. I agree with you on some aspects. The wealthy will not sign anything until a lawyer reviews it. mutual funds. I will leave some for my 25 . Some talk about investing with WL. it is life insurance. Simply Politics September 22 2010 2:14 PM To say that all Whole Life insurance is a bad investment is to not know all the companies that represent it. (I really ticks me off when they say that the insurance company will not pay because it was an act of God. What I love about my EIUL policy is that there won't be a set time where my coverage ends and if nothing bad happens to me. . I kind of regret not doing it. stocks. Where did the money go? Pockets.00 and the cash value is $50. A young couple with children and a mortgage needs a lot of term and a smaller amount of permanent because they are going to outlive their need for most of the life insurance when those kids have their education and gone and the house is paid off.00 and the owner of the policy dies then the benifciary gets $550. Keep it simple and to the point.. Term does not produce that type of income for agents. Rick October 08 2010 2:36 PM Some UL policies add the cash value to the death benifit so that the benifciaries get the death benifit and the cash value. Mutual and Mutual Of Omaha. Then why should I pay intrest on borrowing my own money and my family does'nt get any of it when I die. Then make your decision. so if the policy is $500.. And the producer of that type of income is Whole Life sales.00 tax free. I have managed offices for both Mass. Also if you cash out of your insurance you get your money back. To compare permanent life to term is like comparing a dump truck to a bus. They both need a driver and burn diesel but they to do 2 entirely different things. His annual income is over 500k a year. I fund my Roth every year. but I think you have it wrong here. They tell you that the cash value built up in a WL policy is yours. Why? Most people do not have the dedication or knowledge to watch their investments and some people do not even know where to invest. Educate yourself as best you can. Don't get me wrong.000. Are there really any agentcies with agents out there that will be completely honest and compassionate about YOUR needs. So what do you think they will push. I can take in tax-free income Patrick Au October 17 2010 8:58 PM First Life Insurance is not an investment . The reason is because a life long friend of over 30 years has been an independant insurance agent for about 14 years.

I have to disagree a little on his return figure on mutual funds but overall he is right. and truths might be a little different for everyone. estate planning needs. since I may have said too much for many. or have exhausted all other tax deferred ways to save." Isn't the point of having life insurance that the spouse doesn't suffer? I heard less than 1% of term policies pay off a death benefit. David August 31 2010 10:56 PM I agree and disagree. whole life might just be interesting. but human life value is the most important factor and you should never create a gap in that in order to buy whole life insurance. Niki September 01 2010 6:17 PM I am an insurance agent. Whole life is best thought of as term life (with a term longer than you need) coupled with a tax deferred guaranteed investment contract. At retirement. It's all outlined in the article you've commented on. The truth to whole life insurance is that it should never be used first as a investment tool but as a way to replace income. Can't cash value life insurance be used as a generation transfer and estate liquidity tool? Does Dave really think that cash value life insurance is the worst thing for everyone? It seems like all the wealthy people are using it for kids and grandkids. Ramsey's advice is spot on as long you are one of the 70% of the "normal" population. Term life insurance is great and fits perfect with many people in the world today. The GIC component to me should be an asset class of its own and is so a source of diversification that reduces the variance in the total value of your investments. but is sadly misguided when it comes to the truth about whole life. Interestingly. Those returns. If I die tomorrow I need alot of protection. I think you missed the point. Most people buy one or the other. Charlie Goodrich September 08 2010 10:49 PM I love one of the last comments on this article "your spouse will just have to suffer through if you die without insurance. whole life is an easy way to save. they do different things. when does whole life make sense? Well. If I die in 40 years I at minimum need to get into the ground. as the last several years in the capital markets have shown. Whole life becomes a valuable tool at the time many people need it the least. if you can't save a nickel. to the population at large that is. with the dividend more than likely I could afford to purchase an additional term with the dividend from my whole life. So. probate free. life insurance is pretty simple. but it should be up to you to do your due dilligebce and decide for yourself what works best. avoid whole life unless you are dirt poor or have boatloads of money and at least 3 advisors you trust who think whole life makes sense for you. By chance I also have an advanced degree from one of the schools that pioneered the wiz bang stuff on Wall Street these days. If you have unique. Also. are low. for me. The only bills will be the bill for burial. If I plan correctly I will blow all my cash and mutual funds and everything else before I go and only leave the exact amount of tax free. pennies to the dollar life insurance to get me into the ground. and term insurance. At the end of a 20 year term. Why would the family be left with debt? If you're following Dave's advice. which should easily be covered if you've saved for it with the savings. If you can't save a nickel you are likely to make bad investment decisions so the guaranteed return is a good choice for you.Ippolito September 10 2010 7:32 PM I am going through the process of updating my life insurance as well as disability insurance. So. It may be his truth. universal life. So. like all GICs. Nick Kruthaupt August 30 2010 1:41 PM Mr.Life insurance family and probably draw some on the cash value when I choose too. your rates in Mr. and I feel the Term vs Whole debate is a silly conversation. the other group where whole life may make sense is the loaded. Paul September 07 2010 4:19 PM Joel. They are not comparable. Does this not seem like a pretty good addition to someone's portfolio? I'd say so. K. Listen to all the facts and the key always is to get a good advisor that can help you for your specific situation because everyone's situation is different. because only low returns can be guaranteed. you're gonna be debt free. whole life can be used as an asset to leverage against giving you the ability to spend down other assets usually creating a significant cash flow increase at retirement. Ramsey has some good points. Ramseys 26 .

you choose when the premium stops but the death benefit and cash continue to grow. I am a single mom and I think I was cheated in the process. Typical rates of return after the first few years is around 5%. Should I cash them in and buy term.. Make sure you find a good highly rated mutual company. Patricia August 28 2010 8:52 AM Ok your making an usumption that a person is going to save so much with in 20 years... I am always amazed at two statements I hear: Why didn't I buy more of the permanent? I still want coverage and my term insurance is running out. Your assistance will be greatly appreciated. (New York Life.. Mass. then if you don't renew your policy and you die what will your family be left with? Debt and grief. Not everyone is desipline enought to save. I have about 20. Joel B. Whole life is not for everyone but it's an excellent place to provide permanent death benefit protection and grow money safely in a tax advantaged way over time. plus my agent put the wrong beneficiary in the policy.00 in loans against the cash values (approximate. the basis is surrendered first and in most states there is some creditor and lawsuit protection.Life insurance example could go from $7 per month to $300 or $400 per month on a new 20 year term. In other words. Chris August 21 2010 11:49 AM If you are only going to need term insurance for 20 years and be self insured. A whole life contract is guaranteed to pay out more than you put into it. I believe every person has thier own individual need for term or whole life insurance and we can't go in life sterotyping and making assuptions for everyone to have the same need. You can also buy a policy now with a specific paid-up date. Northwestern Mutual) These mutual companies pay dividends which can be used to offset the premium or build the cash value and death benefit. Most CPAs agree whole life is the most tax advantaged vehicle in our tax code today. Blanca August 26 2010 6:06 PM I have what is called a Flexible Premium Variable Life Insurance. money can be accessed tax free in retirement via loans. Also my policy has the ability to convert to a permanent policy (from term) if I am permanently disabled. I am 50 years old and fit? John August 22 2010 8:33 PM Buy term and invest the difference (or lose the difference as of late) is an awful idea. Money grows tax deferred. Dusty August 20 2010 9:05 PM 27 . Dusty August 21 2010 8:27 AM If you are disabled then the premiums could be paid for by the policy if you have the waiver of premium ruder in it. 10k each). What happens if they don't. Hind sight is always 20/20 right? Amount of coverage is ALWAYS more important than type of coverage. I do sell life insurance.. Where can you get 5% returns on your safe money these days? There is about a 1% chance that a term policy will pay off.and the company pays the premium. it pays a tax free dividend.. I am trying to pay off my debt and have to contribute at $100 a month to this. August 30 2010 12:43 PM I just signed a cash value life insurance and I am not convinced I made the right decision.then why dies Dave still own it? Because Sharon wants it! Not everyone can afford the high premiums of term at age 55 or can medically qualify. Useful since I would no longer get a paycheck or be able to put money in my 401k for retirement.000. Do I still have any rights to cancel this policy? Please advise. death benefit is income tax free. It has been a month since I signed and the policy says they give you 14 days only to change. Do you know the percentage of persons that are able to save for thier retirement. Should I take the penalty and get out? MARK August 25 2010 9:09 AM I have two whole life Insurance policies that are over 20 years old.

Insurance Scholar August 10 2010 8:23 PM Buy Term and Invest the Difference if you 1. The insurance agent of the 21st century has to be a helper of people and not a searcher of commissions. and all have in some way been duped. thats it! And to answer the prior question about Universal Life(UL) someone raised. I have to call my agent who signed me on . UL is closely resembles Annual renewable term with a saving element but the problem is ALMOST ALL of them eventually expire or implode because the cash value eventually isnt enough to subsidize/continue the policy at the "scheduled" premuim & the client loses the coverage and all the supposed cash value! Ed August 11 2010 3:33 PM wow. I have come across various income levels. How would people feel if they "saved" money in the bank then when you finally want it. just as well as term is for every family. Due to medical problems. otherwise the foolishness of investing the difference will continue. In truth the average person who buys insurance does not hold a securities license.I was advised that it was the same as whole life)life insurance 15 years ago. I didn't realize it then.) cant afford whole life 2.. Any thoughts? Jonathan August 16 2010 9:13 AM Adam.Life insurance I am a 60 year old married male. IRA's.. The problem that exists is the greed of one's own self. my youngest has just got into college and my wife lost her job a year ago. sure is a lot of trash value agents still saying how "great" whole life is. For me WL is a supplement to my insurance and my overall financial plan. Purchase it from a highly rated "Mutual Company. the companies and agents that sell them." Your cash value will be based on an adjustable interest rate as well as an annual dividend. Last time I check the ROTH IRA grows tax free & you can access your principal at ANY TIME for ANY REASON WITHOUT TAXES OR PENALTIES and UNLIKE your cash value policy guess what. What options do I have by way of even being considered for term life insurance at this age and a medical history. if they even have that option? Thanks in advance. nor do they have a knowledge of the world of investing. The importance of insurance is protection. trusts. Dave August 11 2010 8:55 AM The myth of investing the difference and paying for term has now become a tale to be believed by many.)are not in a 30%+ tax bracket 3. I am confused as to whether I should get a 20 or 30 year term life plan. To make matters worse. MEC's? Whole life is beneficial for every family. the bank then says you must close the account(surrender life insurance) or pay them interest to take your own hard earned money out! Its such a ripoff! you know who Cash value policies are a good fit for. If you are going to own WL. The insurance question should be answered by competent agents who want to help people adequately protect themselves and their families.) over age 45 28 . than treat it as an additional asset class. you sound as if your an agent that sell that "cash Value" garbage. Joseph Rego August 18 2010 1:26 PM I am a 29 year old married male with no kids yet. which should b criminal. There are agents who do look into policies from the past and advise how to correct it and give something greater for the future. and the lack of compassion to solve people's problems. but the right agent has to give the right knowledge for the right circumstance. who was naive enough to take out a cash value (yes . but time has come for a premium change and it has gone up 10 fold. sold bad insurance.)down own stocks or a 401k 4. saving bonds.it is garbage !! trash value August 11 2010 10:41 AM I own Whole Life Insurance as well as Term. or have gotten bad financial advice with insurance. the client wouldnt have to pay interest to take out their own money. Cash values grow exponentially over time with out the risk of Market decline or taxable gains. is there anything I should know to renegotiate to a term. Invest in what? Mutual funds. Term and Whole life work hand in hand.so before I do call her. I am on long term disability and will never be able to make such payments. The reality is that the average person puts there trust in the insurance professional.

I also have a $100. Due to interest accrued.times were tough for a few years but we kept it going. Is the idea about the UL wrong or not? Chris August 06 2010 10:06 AM I fell for the forced savings Whole Life Policy almost 30 years ago and bought policies for myself.. each one's cash value is over $10K. I will be pleased if my retirement and investments net me about $25.000 Universal Life. I only see the upside to a new way to invest. and both my kids. which I think is a good idea. Adam August 09 2010 10:23 PM Im in the process of reviewing my insurance policy. You can access your money at anytime where many investment vehicles force you to wait till you are 59 1/2 unless a penalty is paid.I wish I had bought more earlier. Dirtwiz July 31 2010 11:30 PM We are canceling our ULI insurance. the last quarter especially and the last three years as people had their money in the market and were losing.without this option she is uninsureable..000 net is bad combined with having no major debt.000/year. If I pay into the UL till about age 65 or so and then allow the money earned in it to make the payments for me it should carry me to nearly 100.we have upped it 3 times and she now has the ability to increase it and have life insurance as a part of her financial plan. Ill be 55 at the Terms end. When my Term runs out at 55 Ill still have the UL insurance to use. I dont expect my retirement or investments to make me weathy.. When my daughter turned 13 she was diagnosed with Juvinile Diabetes and is Insulin dependent. Ive had both policies since about age 30.. I refinanced my house for 15 years and plan to pay it off in 10. I'm glad I have it now and would have definitely not saved early on when times were hard. Because of my age (55) and medical condition. I'm no longer paying anything and the benefits are continuing to grow.Im tying to be realistic. My question is what amount do we pay taxes on. This saves me about $500 a month and the WL policy dividends pay for the Term insurance... If anyone would study the demographics and history of the market.somewhat. However. Dave July 26 2010 4:49 PM I have loved my cash value life insurance. Both policies have been paid off. Im also in the process of starting a Roth IRA and contribute about $200/month. Im not planning to use the UL as an investment. Do we subtract the premiums over the years and only pay taxes on the difference. I have a $250. We continued to pay these policies when we were trying to support a young family and struggling financially. Most examples given say not to use the UL but invest the difference with a 10% return. I lost none of it.. This is why whole life is so great due to tax free growth and using the cash value as your own banking system to avoid paying interest to some other institution. I am making money not losing it... We would not want all of our investments in WL but its a great add on since I am drawing a Teamster Pension and was able to back it up with my WL and 20 year Term instead of taking a Spouse Option (spouse gets 2/3 of my Pension if I die) on my pension. Total costs were $4656 for one and $6048 for the other..$8 more then both of the whole life policies. and death benefits are about $22K and $25K.. Does the loan have an inpact on taxes? mcl26022 July 31 2010 1:14 PM I purchased 2 whole life policies whose death benefits are $20K. In this case I think I made the right decision. I feel pretty secure with it 29 .000 Term with 15 years left. Im single/divorced with no kids. If you can find the right financial advisor that specializes in this. again being realistc. Ive read that the UL is not a good investment policy and I understand peoples arguments and agree. I have a $100K 20 yr term that costs $53 per month .. Where can you get a 10% return? I dont think 10% is realistic. It has a cash value of 27K but we also did a foolish thing an look a loan against it. My wife and my policies have a cash value of about $100K and growing rapidly and are outperforming the market which helps cover the losses of my other market investments. the typical mutual funds and 401k investments will not survive and taxes will only go up...thank goodness we have a policy on her that can be upped every 2 years after she turned 21. Ive yet to read anyone comment on the same idea I was thinking involving the UL.. my wife.Life insurance brian August 10 2010 12:08 PM As a new investor of whole life. you can really provide money for your entire life and even in the worst case scenarios. I dont think $25.

in 30 years. 30 . They cover you for the mortgage. Life insurance isn't about investing. Thank you.84. I would appreciate your advice.000 whole life policy with New York Life and she had set it up to be put in a trust tax deffered. If you have life insurance questions.30 years. You would be paying the cost of a 35 year old instead of a 25 year old. did i mess up? sedin July 03 2010 3:38 AM My Aunt had a whole life policy. the cost will be unaffordable. Annual Premium is $333. cars. George June 22 2010 1:23 PM I'm 65 years old. Also. you're not going to go to your bank right? You would see a doctor.I've just signed up for a 10 year term insurance policy with an accelerated death benefit and a waiver of premium benefit.getting ready to retire. kids. burial needs. talk to someone who is licensed in it. I only purchased it strickly for burial. both whole life I believe his is worth 50k mine 25k. but my mother had a 100. etc. is this worth holding onto? We have no children and not in debit currently and have all our funeral arrangments taken care of? any advice would like to invest this money/ had policies for 20 years at least? Nancy Chambers July 13 2010 3:34 PM I went to my bank they offered very little on my money. Just a few thoughts. she had 10. You would be foolish to buy a $125k of whole life. Your health and age all come into play with life insurance. if you were 10 years into it. and you still have the whole life in place to take care of death. 60 something set up to go to me and the rest went to a loan she had taken out. It would be wise for someone to buy a $25k whole life and a $100k of term. your possessions. we asked what happenned to the other 8k on the death insurance and they said it paid the last 20 years!!!!!!!!!!! So please don't tell me that wholelife policy is good it is a total rip off all the way!!! Luci Lu June 30 2010 12:44 PM I am 60 year old and would like to buy a life insurance but I am very confused of that which insurance I should buy is good for me? please advise. so far its divident is slightly over 6 percent. Chances are the cost you are paying now is more affordable than if you started a new policy. When she passed away and we filed the claim they sent us a check for 2k she did not get her savings it was forfitted. It's about protecting what you have. The policy has a conversion privilege. i am doing this for his school costs. but not on my self on my just born son. You can cancel that policy. you could potentially be covered for all of your life needs and not have to worry about paying it while you are at the retirement age. your home. No dividends are payable. and then some. she only paid it for 20 years the last 20 years it was suppose to be no cost as we thought.000 whole life policy.I don't know what to expect from the premiums if I live longer than 10 years. your family. so i bought whole life i believe.. Was this a mistake? I am having second thoughts about purchasing this. she had it for 40 years. Some companies offer paying a whole life in 10 .Life insurance George July 16 2010 6:10 PM I am sorry to say.is not worth it and term is better? chopps July 15 2010 8:57 PM I have an concern my husband & I have life insurance. i pay $999 a year. Proceeds are payable at death. Once that term renews after 20. (Through Aflac). So. each state is different with the cost of insurance. Monica June 27 2010 4:53 AM I disagree and agree with what Dave is saying. 30 years.. So I do not understand how you people are saying a 125. If you need your sick. Most term policies are 20 .15 years too.000 set to directly pay her funeral cost. It was for 10k her savings was about 8k she paid about 8k into it. I'm sure they would love to talk to you and they can answer all your questions or concerns. I wouldn't suggest cancelling any type of life insurance unless you are going to replace it or supplement it with something else.

Simply select the face plus accumulated value as your death benefit option if you want both the cash value and the death benefit. 31 . but fact. Greg June 03 2010 9:15 AM I'm not understanding the reason for not liking whole life. bonds are down around 25%. I'm very pleased with 4-5. 75% aggressive and 25% conservative is just about as aggressive as ANYONE is going to suggest. Depending on one's goals. Roth IRA's fall below it as well. but it should definitely be chosen over term.5% return on my life insurance cash values. That's a fact you can't really argue with.. Both policies have more cash value than I've paid in especially the whole life it grew 5. Dave Ramsey's generalist statements are false. THAT. What if you were able to have a mixture between 401ks. On an ending note. buy low. According to your plan. the $125. you're still losing at least 25%. Why not buy a whole life policy that will be there tax free for my family? Stu June 08 2010 9:42 AM There is whole life insurance that puts 85% of your premium in cash value in the first year -talk to a Mass Mutual agent. investing 101. I bet you'll rethink this un-evolved theory. It depends. now you know the REAL truth about cash value Life Insurance. without something guaranteed to offset our retirement income tax. cash value life insurance isn't a nest egg. is how insurance companies profit the most. while LOWERING risk. with whole life and universal life. my statements are not opinions. GRetchen June 04 2010 12:36 AM I have a paid up whole life and a universal life. So.. or standard deviation. and depending on the company. Type "adding cash value life insurance" into google. My 401K. the savings you finally build up after being ripped off for years don't go to your family upon your death. cash value life insurance will provide a rate of return that blows those out of the water. I'm tired of the big retun promises and zero return or negative return actually received. Not all cash value life insurance policies are designed that way.5% last year and no taxes owed. Mike June 01 2010 12:21 PM "Worse yet.IRA. That's never any good.000 in our example. we're all in for a nightmare. assuming your portfolio is well balanced. 98% of term holders don't use the insurance.. But when the market is down 60%." This is a half true statement. the policy can be structured so both the accumulated cash value and the death benefit are payable at death. In my experience and research. Out of the 4 products that can create tax-free income. June 20 2010 11:48 AM Is Term Life insurance necessary or would I be better off investing my premium for the next 30 years? need advice June 14 2010 12:42 PM So Dave life insurance does not make a good investment? Can you tell me what investment would make a good life policy? The government is going to want their take on my estate when I die. It's safe to say that bonds are the safest of the volatile products out there. every dollar you have invested is at risk. Use the cash value life insurance so you don't have to sell low. a Roth.Life insurance Carol H. and some Cash Value Life Insurance? Wouldn't you be able to make your retirement funds last longer if you were able to use the Cash from a whole life policy when the market was bad in retirement? You know. I do agree that CVLI should never be anyones retirement parachute. ROTH IRA. Does that sound safe to anyone? And we haven't even gotten to the current tax bracket structure.. That is only one way to structure the death benefit of a life insurance policy. sell high. Michael May 30 2010 11:08 PM Good article. Your family can have both. my friends. and read Ibbotson's article and comparison. but a supplemental with a guarantee. Just my thoughts. The only benefit paid to your family is the face value of the policy. but this "buy term and invest the difference" theory is a little outdated.why not invest your 25% into the product out there? Cash value life insurance added to a portfolio INCREASES rate of return. Stocks and Mutual Funds have all had negative return averages for the last 10 years.

Dave we need help what is this and what is your take? We are being approached on this as a Term + Savings account and there is NO good information on this plan. not to mension if you live past 80/85/90 (depending on the policy) your term ends. Term insurance is good because its cheaper and covers you during a time of "hightened risk"..I think I will keep what I have. John May 23 2010 9:47 AM Great article. The best alternative is a hybrid of both. there are many different kinds of term insurance as well. but it never ends..If you don't have insurance and you have to go to hospital.. Also like many people have posted.. and have seen both the pro's and con's on different types of life insurance.000. etc. wouldn't it be nice to own life insurance in retirement? To me. no matter if you live to 120.heart attack. a smaller WL/UL policy that covers final expenses with a term rider to cover during hightened risk. if you look at it as a bill. as it always does.. Like anything else. they will blow it like everything else. be careful! Some policies renew ever year. carol May 22 2010 10:16 PM So what happens when your term runs out and life has thrown you a curve ball.. Joel May 29 2010 1:21 PM I too have read Patrick Kelly's Tax Free Retirement (as described by the other David in these comments) and am not sure Dave Ramsey's right on this one. I thought I knew what to do until I did. and when you hit your 60's and 70's. causing your premiums to increase. it makes sense that we could spend more than interest and growth on our investments and actually get into the principal of our savings without bankrupting each other. I noticed you said that mutual funds perform 12% outside of a life insurance policy. That's why we own whole life insurance. the premiums are next to unaffordable. Life insurance ISN'T FOR YOU! It is for those loved ones that you will leave behind when you pass..My wife has a policy that she can access her policy in the event she becomes terminally ill or comes down with cancer.. Yes. For a married couple. why take the chance??? It's protection.. you are in the wrong mind set to begin with. you'll have to pay over $20.. Term just won't last as long as I plan to live.. but the percentage of people who actually die during term being in effect is less then 5%.That happened to a friend of mine. Heather May 26 2010 8:03 AM IUL ..Ive seen too many families with term end up losing everything because the TERM ran out.And why not buy a universal life policy that I can access while I am alive. you don't know how the market is going to do at all. This strategy also let's me be more conservative with my investments.. and most people won't even invest the difference as they say they will. I'm looking for guidance from Dave on this. but from a 30..000 foot level I think Patrick Kelly's approach might be better. David May 20 2010 6:04 PM 32 . and why he's saying it. David May 28 2010 9:53 PM Dave. It is very important for everyone to have health insurance. whole life is higher priced. When? certainly not on average over the last 10 years.Life insurance Buck May 29 2010 11:20 PM I work in the senior market as an insurance agent with retirement planning on all spectrums..I know a site that offer the cheapest possible price for health insurance. I understand what he's saying. stroke. or 10 years. Terry Trexler May 22 2010 9:48 AM Has anyone read "Tax-Free Retirement" by Partick Kelly. In today's society with medicine and health break throughs the way they are. 5 years. Just sayin'. free quotes and a lot of benefits. and you dont have any investments left? What if you play with mutual funds and they go down and you lose your money? Why put my money in mutual funds when I will be taxed on any withdrawals? I can put it in my life insurance and access it tax free..Indexed Universal Life.. needs an organ transplant.

John May 06 2010 9:20 AM Most term insurance will not be inforce when you die. ago yesterday. also passed away. Its for someone looking to diversify their retirement potofolio and avoid taxes at all cost. Using Whole Life as a savings device? it is a joke and i cannot and will not recommend it. But this thing known as Estate Tax is looming. He really had no blood with the 33 . From this article. that he had another policy. Death benefits are a tax free way to leave a legacy. Kirk Hill April 20 2010 3:16 PM my spouse passed away 3 yrs. no kids to feed. A lot of a term and a little permanent. my wife & I bought single-payment life insurance on our respective lives. I've always been advised to have a mixture of coverage. Did he not have any money at all to pass along? Bill May 13 2010 5:32 PM So where do i sign up for 12% return on a mutual fund? Sounds great. grand kids. Now. Whole life isn't for someone looking to get coverage for 100 bucks a month. but its been hard to find that kind of return in our wonderful economy. these policies are paid-up and the cash surrender value is equal to about 86% of the death benefit. If your husband died without a will. and he never changed that one and put it in my name. Your gains are TAX DEFFERED. we're thinking of cancelling our whole life insurance for 20yr term insurance. Should we get a replacement paid-up policy with a zero premium? We own our home debt-free and are debt-free. Jack May 19 2010 1:35 PM Dave.cash out your policy. your husband's will would determine where the proceeds (along with all other assets in his estate) would go. I am going to die and the cost of the permanent will be still be less than a direct funeral costs. If I happen to out live my term. Joe May 04 2010 10:02 AM Rhonda . etc. it would appear to make sense to cash out the policies and buy term insurance. and no need for life ins. Hope that helps. Is there any chance of me and my family to get that policy. Wade April 29 2010 12:19 PM About 23 years ago. we were married 22 yrs. I recently found out from a letter from the ins.Life insurance And if you wake up with whole life at age 80.. but I'm sure your dad won't mind a little less at his funeral. The person who is on the benificary. Julio April 25 2010 7:21 PM Term is best to provide needed liquidity for dependents. co. My wife is a little worried that 20yrs is insufficient because when the term is up. our premium would be very high and that would also be the time when most of the critical illnesses come in. then the proceeds of the policy should go back into your husband's estate. then your state's intestate laws would determine how his estate would be distributed. and there were no other contingent beneficiaries.. In that case. Should we get a longer term? Christopher May 17 2010 4:44 PM Karen -.if the beneficiary of the life insurance policy died before your husband. With death benefit only life insurance (minimal cash value) that can deliver 5-10% tax free rates of return at or beyond life expectancy.Why are you paying the $2700 for the funeral expenses? You can't afford it! That's why you are using Dave's program in the first place! Not to be crass. Perhaps minimal death benefit/maximum premium used in a variable universal life envelope can work as a deferred vehicle with good income provisions at or beyond retirement but the fees are steep. what a great way to pass the baton in trust (outside of the estate) with spendthrift provisions f/b/o kids. And most people who buy term insurance spend the difference. We also have substantial savings.

If you invest in stocks. I do not agree with what the article is saying. That is just my opinion! stuart April 15 2010 6:20 PM If I am an older person. I think it sounds like a wonderful idea. term can not be purchased st this age. All I really know is that the day after we got married. I am worried that investing in Mutual funds may not work the best in 40 years when I want to retire. will all have a tax to be paid when they are passed to another person. even bigger than oil and that to me is a solid company to be putting my money on rather than a stock market where you have no garranteed return on investment. tell me where a savings account can do that. cant work.. Savings. He fails to mention the fact of the possibility of death before accumulation is substantial. Borrowing against your whole life with the cash value is "tax free" it is your money to take out after retirement and then you still have your cash value to leave for your kids and loved ones. What is the best way to transition away from whole life? Theresa April 12 2010 3:38 PM I am 27 and in good health. I want to know why it's a bad idea. The whole life gives you a minimum 4% interest and above. The conclusion is this to me.. Buy term insurance and at the same time save so that you are insured with cash in the end. Reading what everyone had to say about whole Life and Term insurance has been very helpful. especially when the market crashes. A permanent life insurance plan is a great idea. Why note use whole life ins. stocks. If I buy a 20 year term i will be 47 when it is up and if I want to buy another product for life insurance I will be paying more due to mortality. say 65 and have an extra $15K that I would like to do something with other than letting it just sit in my savings account.. This is just a thought i am not a guru like Dave. That is why it is called "LIFE" insurance.. as a way to pass on money to another person??? yuri April 12 2010 9:48 PM My husband and I have $150.. If I am planing on leaving this money to a beneficiary why not just use this $15K to buy up a $30K policy. etc. Start with a lot of term and investment.. he told me he changed every policy in my name. Being an older person. please help me Rhonda April 20 2010 1:42 PM I don't exactly agree with this article. The life insurance companies are the largest institutes in the World. Rachael Morgen April 06 2010 8:10 PM You never know what your going wake up with. They both are teachers and want to make sure their kids get to college if something should happen to them. brandon April 08 2010 2:07 PM I too have just heard about Index Universal Life Insurance.Life insurance one he left it to.000 in term. you might get 4% but then you have a capital gains tax. He's divorced. but with the Life Insurance I am promised a constant return.whole life til 80 Alfonso Freda April 05 2010 6:38 PM Dave. I'm disabled. If you buy whole life you are garranteed the face value up to death (100% return) for your family. mae April 02 2010 10:50 PM 34 . Example: 28 year old couple with 2 small children. Life insurance is never taxed when it passes on to a beneficiary. mutual funds. CD's. all my investment and insurance money when I retire then die. no will was left. the term provides an instant nest egg while the investments grow.000 in whole and $600. Once their kids are out of school then of course focus on putting more in to retirement.

Darrell Powell March 16 2010 10:25 PM Dave I couldn't agree with you more. I am a fee only financial planner and I have never seen a need for whole life.so now. and understand the benefits of owning a whole life policy with a good. A full disclosure might be proper here. I also find it interesting that Dave recommends buying term insurance and then recommends an agent to buy it from. My guess is Dave is being paid by this agent for the business he is sending them.you would not beleive how much the rate increased each year! He continued to renew for a few (3yrs I think). they are wise to obtain one while they are still healthy enough to qualify. Like the article says. it is wise to take advice from a man who has helped and inspired millions of people to win with money. no life insurance! He recently contacted several agents to try to get a new policy. I got some messes to clean up.000 in death benefit and pay in $18.he didn't.K. BUT NOT a lot 35 . Bob Bob March 04 2010 3:16 PM My good friend H. The initial term ran out. There is a lack of knowledge out there about investing and insurance is not an investment. When people can afford it. you're saying that it was a bad idea for one of my dear friends to buy a whole life policy through a mutual company 24 years ago for $700.but like most people I know. Doug March 24 2010 9:07 AM Rick.Life insurance All I want to say is that I have listened to the gurus all my adult life and lived by their rules. Term is cheaper and affordable when you can't afford permanent/whole life insurance.. However. what do I do then at 57. Mark Elliott March 18 2010 11:06 AM If I put my money in mutual funds and the market tanks.wow. it is not wise to invest in a whole life plan. and when the market crashed at age 63 I lost 40% of all savings and retirement.552. Rick March 19 2010 12:01 PM Thanks for providing this helpful advice.737 and the policy is paid up and has a total death benefit of 1. And the gurus sit back and say.955? Now he receives a little over $80.he planned to invest the difference. If someone is asking you to buy whole life ask them what else they are licensed to sell and 99% of the time they can't sell other securities. The advice given here is aimed at those who live paycheckto-paycheck and have a need for a signficant amount of insurance. I do not disagree but mutual funds are some of the most volatile investment vehicles available. I am very concerned that we will ever be able to survive.but then dropped itbecause the cost got out of hand. As Dave advises. I have 7 years left of a term ins policy and will not be able to buy ins when it ends.yes that's 1-40th of what he had. I need a lot more reasons to tell my friend to cancel this policy just because you say that whole life is a rip off.and while the policy was renewable year to year..880.but his age isn't what it used to be.his health definitely isn't and approximately 20 insurance companies flat out declined him. purchased a term policy some years ago when his kids (and he too) were younger. Life got in the way and also his earnings did not increase as much as he expected. Instead of being self-insured the way it was supposed to be. Ray Bobo March 29 2010 6:39 AM So let met get this right. "Sorry". you will be self insured after 20 years if you handle your money with common sense during that time period.and the one company that would cover him was charging a very high premium rate for the maximum they would insure him for.000 a year in dividends and this policy was used with money that would have gone into savings because of security of principle. I know of insurance brokers that don't even advise buying whole life.900 a year and now have a total cash value of $1. mutual life insurance company. Thanks Dave for all you do! Kevin March 24 2010 12:37 AM Permanent insurance is a great product for the right people.which was only one fortieth. Now he says he wishes he had gotten a whole life policy years ago when the premium WAS more than the term policy. I can put my clients in whole life and variable products but I would never do that to them! Thanks for the informative and consumer friendly site.

has a current fund value of $8. tax deferred growth. If everyone believed in a whole life insurance concept within their portfolio. and we are trying to have a baby. I know this story well. but even though healthy and nonsmoker. Basically to cover death issues if it happens??? I don't have power of attorney or anything. and yes. My question is what do we do now? Should we cancel the policy which doesn't even cover us until death and use the fund values to pay down debt and get term insurance? Or should we hold on to it and try to get somethig else to cover us until death? Jan February 08 2010 12:49 PM I am 39 years old and my husband is 49. I checked on 10 times my pay. who is 11 and we are raising her. my stepdaughter. is a mix of both. Only one other child. Buy term to protect against premature death to cover mortgage. raising kids. in my opinion.but i left the choice entirely with him. We have 3 children and live pay check to pay check. I just used some to buy my first home. We have no savings. That way. Perhaps after they have used the money once for their kid's college education. My wife is 36.20 and cost $36.to my shame I'm the agent who he got the term policy from.Life insurance more. one creates an immediate emergency fund (with guarantees and possible dividend accumulation). and the premiums would be more affordable. What do you think ? Jim Mc March 01 2010 9:57 PM My father bought a whole life policy and it was the best investment he ever made! It has had an average rate of return of 6%/yr.. and paid themselves back via a loan from their own cash value.00 whole life insurance policy in 1993 which has a projectd Termination age of 64 and has a fund value of $5.055.595 policy with a projected termination age of 65. when your term MAY expire someday. and replacing income.And if it is not. or maybe too much life insurance? I'm 48.241. I should have been more persuasive in presenting what was a very well valued whole life policy at the time.a TAX free death benefit..25 a month for my husband who is now 45. AND it doesnt go down in value. The best plan. I would think not at this time! Josie Hayes February 04 2010 3:37 PM My husband is 68 and in poor health. Dave does not account for outstanding life companies like Country Life Ins Co. recently married for the first time. what kind of life insurance do I need in case something were to happen to him and me jobless? Kelly Barnes February 08 2010 5:46 AM I have a brother that is 19 months older than I. Jeff February 20 2010 2:11 PM We bought a $100. one can use living benefits of life insurance to supplement their retirement with tax free money. Ryan February 23 2010 3:27 PM Dave does not account for what can be done with paid-up additions in whole life insurance. but bank on yourself with WL insurance and paid-up additions. Also I don't know if he has any type of will made or not. We also bought a $119. But He is homeless at this by his choice in another state. I pray that nothing happens but my husband is the sole provider for the family. I'm thinking maybe I should have gone with 15 to 20 year term since that is what I hear Dave say. you have permanent coverage nobody can take from you (especially when you probably need it the most in later years!) With WL.51 and costs $47 a month. Would it be legal for me to buy Life Insurance in his name with me as the beneficiary. our society would probably be a little better off.where do we get it? Doni Healy February 02 2010 2:53 PM Do I have enough. Some stats: our 36 . I signed up for 25 year term-level insurance from USAA of half a million (about 5 times my pay). Permanent life insurance from a strong company can create wealth over 30+ years with guaranteed values. at my age it gets VERY expensive for 25 year.Is it still to late to buy life insurance.

will the company make it more difficult to collect since we're not married? maia January 17 2010 10:44 PM 37 . soemone claiming paying double for 15-25 years on term insurance and would get all money you paid if you don't die. as well as all growth would be tax free. No up side benefit but down side protection. mutual funds investments. People!!! When Dave was saying buy term insurance and invest the different. I was told that it I have my old Cash Value policy. the only reason why any insurance company willing to give you back the money is because they used your extra cash to invest in the very same market. He doesn't mean to ask you to buy the insurance and then invest your money into a short term investiment(Day trading). in Canada where I live. but is now worth $305. However. and we have no other debts. We are looking good as far as retirement benefits.000 because of the market returns that Ramsey said would be worth lots more. There is no way that amount covers my needs. Also. if the market ever dropped below this stated rate. 401K. I have both presently. David February 02 2010 1:32 PM But after the term policy runs out and you have out lived it and you have all of this wealth then how does your spouse pay the estate taxes when you die? We dont live in a black and white or utopia society. college savings. my cancer condition would be covered. otherwise. It was presented in a manner that was tax free as not only a deat benefit but also retirement income (also tax free) in the golden years. S & P did lose 35% in the last couple years. The "Indexing" concept was explained in that I would be guaranteed a rate (presently between 8 and 12 %). My savings went from over $750. In my post FPU search I have been made aware of a product called "Indexed Universal Life". tax issue. If you even have some sense on investment. I listened to Dave Ramsey's advice and I went out and cancelled my life policy and I bought a lot of Term Insurance. I discovered I have cancer.think twice before you do so.The 10 to 20 years would give them enough time to balance out the risk to get their 12%19% Rate of return to cover their cost. What is your advice about how my plan worked out? Clayton January 25 2010 6:27 PM I have read thru all the replies and comments. You actrually should do it as a long term investment as in a UL or WL. No Insurance company will sell me a policy. In order to see the actrual differences.I used to own a Cash Value Life Policy. we got many option to offset this such as RRSP/Tax free saving account which can do the same thing as UL. However . RRSP let u lower your tax bracket and get the tax back and TFSA let you invest and not getting tax on the gain. A few years before my policy was about to expire. And last. my term is expired and now I am uninsurable. Dewayne February 02 2010 10:02 AM I have a very big concern . but actrually gain somewat around 10% over the last 10years. Frank January 22 2010 11:01 AM Has anyone hear of or been exposed to indexed universal life isurance? Phillip January 21 2010 10:12 PM Being a recent graduate of FPU. Having sold W/L and U/L for a large insurance company. you have to be able to leave the money in the market for it to grow.000.I began shopping for term only. you wouldn't even post something about short term lost as anything short term has risk. Does this sound feasible? Has anyone else been exposed to such a product? Please respond!!! Phillip Byrd January 20 2010 9:40 PM If someone has me named as the beneficiary on their life insurance. my growth would go flat and remain at the stated rate.NO!!! They are out there try to make money off us. you going to pay it for a long time anyways. I think this apply to some of the WL and UL also that has this feature in them. especially now that I will pass away soon. how can the insurance company get their money?I don't think any of them are out there try to make the poor people's life better.Life insurance house is paid for.

but depending on the state that you live it might expire as early as 80 or after 60 it is too expensive to maintain. hopefully in my 80's or later. Dividends on this are paid on the policy amount NOT just the cash value. If you want to own your policy( just like owning a home or a car) there is a price associated with doing that. If you don't want to own it. we bought WL. And with this. Then. And those who are on the "buy term and invest the difference" boat.00 left in savings! Karen January 13 2010 5:42 AM Many people are a TERM candidate and others are WL candidates. I was educated the same way to buy cheap term ins. there will still be $220-300k or more left in there to pass on tax free. You can't always count on what rate your other investment types will give you but with this you always know. I own both. don't buy it for less than 20 years. TERM is great.000 dollar house that i caint pay the mortage on and them forcloseing before i would have a chance to sell and my credit being reuined ! Any advice would be grateful ! Denise January 14 2010 12:22 PM We started the debt snowball on the first. Paid $30k annual for 13 years and had a cash value about $500k using PUA's (Paid Up Additions to multiply the dividends paid). I don't get just the policy amount. The only way of knowing who won the argument is by forwarding life 30 years. So to mitigate that. a stock portfolio and real estate (a little apt I own and live in). Once the dividends are paid. they are permanently added to your asset base and cannot be taken away.last Saturday my father passed away. Rob January 11 2010 9:53 AM We purchased a WL policy many years ago. WL is a long term project.. tell me where to invest??! I have never seen a person who has actually said where they are putting the difference. for insurance and invest the difference for growth. but because I made a plan and I followed it. You probably should still take advantage of 401k/403b employer matching investments and Roth IRA's. You're not just in the calculated tax bracket based on income you know. That may tell me I'm in a 25% bracket but 38 . rent.Life insurance My husband and I bought our fourth and final home 8 months ago and i have been seeking insurance to cover the mortage incase something was to happen to him . But we realized it was almost futile to chase interest rates when you end up paying a majority of it back in taxes. He works and I dont but the big prob here is that 2 1/2 years ago he had trouble with depression and was admitted to the VA hosp for 72 hrs observation for sucicide and we have been turned down for term life insurance because of this and even tho he is doing great now and takes a few meds it is still a prob getting insurance . He left all funeral expenses to my sister and I. I hate them.. You do not account for the use of paid up additions in whole life insurance.. It must be a dividend-paying whole life "non-direct recognition" policy and only a few insurance companies provide it or have agents that know what it is and whether they offer it. I know that if I continue in this path I will be financially secure and not because of WL or TERM. I know: They don't. they spend it. Still don't think of it as an investment vehicle.. And if we do. It contractually accrues dividends every year at a guaranteed rate but has always done better and the past 2 years has matched or outperformed other "safe" investments. they're the biggest money maker for the government. I don't have to fret over my investment performance and how AIG or anyone else tanked my principal and growth or how it's going to be taxed away with little to show for it in the end and to pass on. and I also invest in a retirement plan.. And estate taxes are the worst. You may obtain a lead but it can be an awful ride and stressful. Hoping to qualify for another loan. Whenever I die. I get every dollar in it. I regret using my savings! His program has some areas that each person needs to decide if it is best for their situation to only have $1000. Life insurance is really no different than any other product. Assumptions that are made in your example do not take into account the taxes charged to the mutual fund. Or in insurance terms. But not every WL policy performs like this.00 fory share of the expense! So here I go. etc. Nor do they account for down turns in the economy... or they do it for 3 months and forget about it and 7 years later the WL person is ahead of the game. we will notice that we all had a very different outcome than we think today. Cut up all credit cards and jumped on board to get things paid off. No two life policies are the same. So here we are facing not only the expense of making the 500 mile trip but trying to come up with $2700. Didn't pay anything out of pocket. finadviserNY January 11 2010 6:27 PM Dave. Buying WL doesn't mean "Do not invest". But I want to mitigate taxes. get a term policy. After that it was self sustaining and we are withdrawing $31000 a year till age 95 to use how we like tax free. If we dont get declined then the monthly premium is not afforable ! Any advice ?? My fear is something happening to him and being stuck with a 200. only transferred existing assets annually into it. We dwindled our savings down to the thousand that Dave says to do.

Banks and Wall Street. also the institutions that do just one of these 3 are the tops in each area respectively..a return of premium term life insurance policy. they still need the insurance for their family. unlike whole life insurance. and you never should.if for no other reason than out of respect for your survivors to pay for burial costs. Now here we are in 2009. I read your article. whole life insurance has a big death benefit attached to it (that's called leveraging a dollar folks) that your loved ones can use tax free! My suggestion to most everyone is to have some permanent insurance in their planning . Tim Power January 08 2010 3:04 PM Dave.000. but still a fraction of the premium of a whole life policy. and pay the least amount of tax and pass on the most possible. I am constantly dealing with people in their 60's (my father included) who bought term insurance thinking: the house will be paid off. which you can actually stop paying after some years and the premiums are level. states that have income taxes and on and on and you're more likely in the 40-50% or more tax bracket. I know there are a lot of cross overs. Unfortunately for everyone reading this ALL LIFE INSURANCE has been grossly mis-sold for many years. all of your premiums are returned. although I will have paid out $3. If you have a good advisor they will work with you to build a plan that makes sense for you and your family for many years to come. With this type of policy.Life insurance add in state. I'm confused. and Life Insurance companies let you take part of life insurance and annuities. So I looked up a couple of whole life policies and found an average rate of return of 5. and better. debt will be down. This article fails to mention the third. please help! All the best and happy new year. However. not your peers because they can't see the future. For the consumers out there.. you can look at it almost like the fixed income portion of your portfolio. 39 . and the government is bailing out 2 of the 3 sectors of our economy. unlike a muni bond or a cd. Example: I purchase a 20 year term policy w/ a $100. Since the inception of this country all 3 of these general areas/instituions have existed in some form. I understand the argument that term is cheaper. it's insurance.00/month . enable me to provide my own financing. property taxes. but in the long run. disregarding death benefit over almost every 25 yr segment of history since the 1800s. before you buy. You get the same coverage. federal and state gasoline taxes. license plate taxes.. federal excise taxes on your landline or cell phone.000 death benefit at about $26.and they were dead wrong. However.. or a savings account. I found out that the government has solicited advice on how to run a successful business from 3 of the top mutual based life insurance companies. the kids will be out of the house and WE WON'T NEED THE INSURANCE .my family receives $100. you will pay about double the premium of a standard term policy.5% tax free in just cash value alone.. I have always figured the economy to be broken into 3 areas: Banks. that's where the scam aspect comes in (you're paying for something you won't use)! How is that good advice? Even the best plans fail and people's financial situations change. First.00 death benefit at about $13. I don't look at Life Insurance as an investment.00/month . but i always preferred this simplistic model. BUT. I liked it. But term insurance is also somewhat of a scam.00 at my death. come on look at the market the last 2 years. this is at no cost to you. There! Gadzooks January 09 2010 2:21 AM I don't fully agree with this generalization for a myriad of reasons.my family receives $100. You're most likely not going to die within your term age and as an industry professional.000 upon my death. investment companies offer you the ability to participate in the common market.240. life insurance option .00. almost 10. And I want the easiest access to every dollar I need. but here it goes again. In other words the Fed is ASKING for help from the Life companies and bailing out the banks and investments.000. but. and Life Insurance. utility taxes. The amount is not taxable.120 in premiums.. . get advice from older people about what they wished they did. Investments. albeit for a slightly higher premium. However. or I survive the 20 year term and receive the full amount of premiums I have paid $6. Rick Rick December 28 2009 4:01 PM How can I find out if someone has an insurance policy on me? Lauveta Green December 19 2009 7:24 PM I have mentioned this on another board. "they each know a lot about a little" which I always thought was best.term insurance premiums go through the roof after their term ends and it becomes too expensive to afford for most people. okay. but I receive nothing should I survive the 20 years. The full death benefit applies throughout the term. if I purchase a return of premium 20 year term policy w/ a $100.I got it. but at the end of the term. city and even county sales taxes. Banks back mortgages.

No one can afford to go without insurance. I took out a $3000 loan against it 6 years ago and now I owe $6300. btw taking out cash from your policy is not that hard at all.. Some people prefer gaureentess over the risk of loosing.000. So why would I want to lose that kind of money. The agent said I can can do a payoff that will reduce the value.. The person that the policy was purchased from continues to tell me that whole life is better in the long run. A million dollar policy would have only been a little over $400 a year. and I no longer have to pay premiums. as it is much more affordable when you are young. How many people in DEBT actually have good spending habits?? This is a way to force you to save. You just have to apply them in the correct manner.so we settled for the half million. jason December 15 2009 10:07 AM Why would anyone want to buy Term and invest the difference. I am fearful of our govt increasing the estate tax in the future. Cash value life insurance is a good conservative part to everyones portfolio. considering I have had the policy out on me for so long? Ashleigh December 14 2009 4:19 PM I have a universal life policy that I started 10 years ago. But everybody doesn't want to become an investor.. my husband and I went without life insurance for many years. Term doesn't fit every situation neither does whole or universal life. I have since slept much better. Now it is time for me to take over the policy. knowing if something happens my girls and I will be just fine. I already have a term set up. If the estate tax is 50%. All these products have a purpose. I'm just trying to find the best way to get out of this. I can get a guaranteed insurance product of 1% when the market is down and this product mires the S&P 500 index alex salas December 15 2009 8:55 AM My grandfather bought a policy out for me when I was about a year old. but my husband said I would try to kill him for THAT much . What are my options? Could I put this money into an an investment instead? Should I stick with my whole life or switch to term. Not one size fits all approach Clarence December 12 2009 8:02 AM term life makes more sense for the person that has a plan or should I say goals in life 40 . Any advice? tom December 14 2009 3:43 PM What about the tax implications for your heirs.I called and was able to purchase a 20 year term policy for $500K for only $255 a year. Doesn't LI provide a better means of passing wealth to your children. it occurred to me that if something were to happen to him I would not be able to support myself or put my children through college. and there is no better investment than to protect one's family. Buy TERM and do it as early as you can. or in a LI policy? Lp December 14 2009 2:38 AM I hear the arguments about what type of insurance to buy all the time. The S&P lost over 35% last year in 2008. The agent keeps telling me to not touch it or do anything with changing the policy. cash value $10200.Life insurance Jessica December 16 2009 2:43 PM As a young couple.. The cash surrender is $3500. In my opinion no insurance policy is bad or good.My cash value is worth more than I paid. Cash value life insurance is a great product because it forces you to save. Shayne December 15 2009 9:52 PM Are you kidding me!? My WHOLE life insurance policy has paid for itself. So this should be an indivitual thing. When we turned 35. so upon hearing one of Dave's informercials on Zander Insurance . Buying term and investing the differnece is a great strategy.. However it is whole life insurance. is it better to invest the money on your own. The policies death benefit is 52.

Life insurance
Robert December 10 2009 8:56 PM I need help concerning purchasing life insurance for a irresponsible 40 yr old brother. He doesn't think he needs it right now because he can't afford it. If he dies, I'm the only one who could afford to do anything but I don't want to have to take away from my family to bury him because he's too irresponsible to take it out. Should I just get a pre-arranged funeral since I think I can do that without his knowledge? I asked him if I could take out life insurance on him at my expense and he still said he'd take care of it later. What to do? 1singingbryant December 08 2009 5:31 PM Kim, you're right in saying the odds are against anything happening to either of you. But what if it does? Do you have $10,000 in cash to pay for final expenses? If you are struggling to make it on two incomes how would you make on one? Do you have car insurance because you PLAN to get in an accident? I know it's the law in most states, but would you cancel that if it wasn't? Find the least expensive 20yr.term policy, get enough coverage to at least pay for the debt(including the mortgage) and final expenses. John D. December 03 2009 12:32 PM Ok, now I maybe need to rethink our policies? Confused; I'll have to look further into ehat we have. Regardless, We are working on paying down our debt, which is a lot. Honestly, we are struggling right now and learning to do without. So my quiestion is, do we ditch our life insurance policies while we are paying off debt to pay oiff faster? If we are struggling to pay bills each month, is it worth having life insurance? These policies were just set up this year, so waiting another year or two can't make the premiums that much more each month, can it? And really, I know anything is possible, but what is the liklihood of something happening? Also, my thinking is what good is it to prepare so much for a life where my husband or myself dies, if we cannot take care of ourselves when we are living? Would it not be better to get out of debt and then buy life insurance? Kim November 30 2009 11:46 PM My firm has very independently specialized in term life insurance for 39 years. You provide great financial advice and I work with a number of your clients. Keep up the good work! Your statement about Cash Value Life insurance is very good general advice. It would be nice if everything were that simple. It may be true in some or even many cases, but it is certainly not true in all cases. For example, given the right company, the right Universal Life (other types purposely excluded) policy, the right funding (maximum works best), and a high marginal tax bracket, a Universal Life policy can safely outperform all comparable investment alternatives (Life insurance is not considered an investment). I and some of my clients have done it, and will continue to do it. Robert J. Moody November 24 2009 5:54 PM I purchased a Whole Life policy ($58K death benefit) from myself back in 1989. I was an agent at the #1 insurance company at the time. I put in $50 a month for 19 years, for a total of around $11,400. When I wised up and replaced my Whole Life (investment) insurance with straight Term, I cashed it out. The cash value was around $12,000 - a net return of SQUAT! Now I have $750,000 of death benefit for $70 a month, and invest $500 a month into a Roth IRA. Gary Hale October 29 2009 2:07 PM I got suckered into buying a whole life policy when I was young and stupid. Buy term. Insurance is not an investment.

I haven't even watched the video yet, b/c I have been educated on this and choose term (and b/c it's late at night and I can't turn on the volume), but by reading this comments, it really sounds like the insurance lobby has instructed all its agents to log on and comment against term insurance. I find it hard to believe that so many people who listen to Ramsey would not agree with the premise that, for most people, "term is better." You would not be able to tell that from the first page of comments. I will pay you for a death benefit and invest my own money in a market-tracking (S&P 500) mutual fund, thank you very much, insurance companies. Sadly, no agents will make a big commission when I do that. My full

41

Life insurance
investment will start working for me (or not, if the market is bad), but it won't be going into someone's pocket in the form of commission and high management fees. Jody March 13 2011 1:06 AM @ Kay. Probably neither. At age 60, whole life would probably cost way too much and would not build up value. You'd need to meet with a comprehensive financial advisor/planner (not just a life insurance guy) and figure out the best way to go. Just decide if you have a permanent need for the death benefit or not, then figure out what would be the best type (again, unlikely that it would be whole life). I was surprised to learn how many options were out there! Stefan March 02 2011 12:02 PM My husband and I are both 60 years old and we want to know if we should get term or whole life policies Kay February 21 2011 7:08 AM "I know the agents try to tell you they might not be able to get insurance if they get sick but what are the real odds of that? If they did get sick, how far would 50k insurance payout go for their dependents anyway? Would the be able to add more coverage if they were sick? It is a high price to pay to "guarantee" insurability for a kid! Terry December 27 2009 9:56 " I know it's an old comment, but I couldn't let it pass. My Aunt became uninsurable with Diabetes at age 14. My (non-blood related) nephew was uninsurable at 6 months due to a congenital heart disorder. My Wife became uninsurable with a chronic back disorder at 27. I know of another friend's child that isuninsurable due to a car accident that caused brain trauma - she is otherwise functional, but has occasional seizures; no onee will insure her. It is against these very things that we buy insurance in the first place! I bought a permanent Indexed Universal (probably the best permanent type of policy on the market as far as value for your dollar) policy my children (ages 7 and 1) with a $155k DB each. The most important part of the policy, was that I put a Guaranteed Insurability rider on the policies that allows them to purchase $50k of additional insurance every three years starting at age 22. Why? because I love my unborn grandchildren, and I love my sons' wives, and I want to make sure that they are taken care of even if my son(s) become uninsurable! When I bought it I wrote a letter out to my children and stuck it in the policies with instructions on how to use the policies. If the fairly conservative projections hold up, they should each have around $32,000 in cash value around age 30 - not bad for a total investment of $17,000 over 24 years(on the 7 year old)while still providing a guarantee should any chronic disease or accident happen. If they are still healthy, I instructed them to cash out the policies when they are at about a $1 to 3 ratio, because they can probably get more insurance for similar cost. Hopefully I will be providing them with a downpayment on a home or business. For $100 a month -which is adjustable up or down -, to offer all of that, plus the peace of mind that comes with it, I say is FAR worth it, and a better ROI than just money. *full disclosure - I also have a 529 plan for them, and I have a Variable insurance policy on myself, coupled with a Term to make up the difference to match 12 times my income. I also contribute to 401k with a match. I am also now debt-free. I will open a Roth soon - but what Mr. Ramsey doesn't seem to mention that I can find is that most Mutual Funds have a minimum buy-in that starts around $1500-2000; I know there are some that start around $500, but those are rare, and are usually "funds of funds" which aren't bad, but I want more options so I will wait in MM until I have a few thousand to invest. The key is to have your money in different "buckets", anyone who is selling permanent insurance as the be-allend-all for retirement or any other kind of savings is a scheister, but it can, and should be, a valuable tool for many purposes, including a retirement supplememnt. Stefan February 10 2011 10:15 AM My husband is 61. His term policy is up. We can convert but the premiums are completely unaffordable. He had a heart attack 4 years ago. We are currently spending 60% of his income on health insurance premiums and expenses. I am disabled. "Financial peace" is not possible if you are only insurable in the medical high risk pool with outrageous premiums. We have no money to convert the term life, so will have to do without. The only winners are the insurance companies. KC January 18 2011 1:42 AM This video is one of the funniest things I have ever seen. You are talking to a broad audience yet giving a blanket recommendation. That doesn't work. There are situations where term insurance is perfect and many other times that the benefits of a cash value life insurance contract provide so much more than you can have with a temporary term life

42

Life insurance
policy. With the uncertainty in the economy and interest rates at all time lows how can you argue with a policy that provides guarantees for a lifetime. Every situation is different, no one's financial situation is the same. Dustin Hayden December 29 2010 8:50 PM This video isn't very helpful. It's great how Jeff talks about term and why it's great and doesn't knock down whole life, but I really want to know/read why whole isn't the smartest choice and what is really not good about it. It would be great to still have the article that you guys had up about whole vs. term so I can clearly tell our friends the two different options. Jody December 17 2010 8:10 PM Incidentally, I feel REALLY bad for the people who canceled their whole life policies 20 years ago and bought term and invested the rest in the market. Based on the S&P 500, they would have gotten about 6.4% on their money BEFORE taxes and fees, if they were fortunate. If you bought a whole life policy 20 years ago and canceled it today, the return you would get on your premiums net of any fees is typically GUARANTEED to be minimum 4%. And that's if you were silly enough to cancel a policy that likely now can pay its own premiums from now until the day you die, no matter how far of that is. RLF November 13 2010 6:22 AM i do work for a life insurance company and i dont understand the whole competition between term and whole life. when i write policies for clients i explain the difference between the two insurances. the idea some people swear by is get term and invest the rest, yes that sounds great and all yet honestly speaking, how many people will invest it or even know how or what to invest in. most people simply live paycheck to paycheck and dont go out of their way to "invest" the extra money. when writing a policy i always start with small whole life, and then term insurance to cover assets like income, a mortgage, car payments etc. so that way if they die prematurely they have the assets paid off, but if they live long they have the whole life locked in at a young and cheap rate, and that is the only insurance that will be there during the older years. term insurance that says renewable to age 95 will have prices so high they will make you faint. we dont normally sell whole life as an investment although it technically can be seen that way. we sell the whole life to take care of all the final expenses and extra little debts left behind. so all in all both term and whole life work differently because they are meant for different purposes, so as long as my clients understand how they both work, it will benefit all as it should. there is no scam , no BS, just benefits that have different purposes. whole life is great to get locked in at a young age and the premiums paid will not equal the face amount so you will always get more than you put in. it is rare people die during the 10 20 or even 30 year terms so thats why they are so cheap. i enjoy my job and i do both term and whole life. jeff October 07 2010 8:15 PM Steve, First,I had a whole life policy because at the time I thought, "I'm 25 and live a very active life and before I do something to myself where I would become uninsurable", I'll get a $100K whole life policy. I too, thought, guaranteed, for $40/mth I'll never pay up to $100K, great return on investment. However... First, with a Term policy, I get more than twice the coverage for less than half the cost. I use the same amount of money...pay my term policy and invest the difference in a roth. My family now will not only get the face value $250K (more than $100K) plus they'll get what I set aside for savings in a roth IRA. So rather than leave them with only $100K, now they'll get $250, plus whatever my roth grows to. I get the idea Steve that your family will get the $250, but so will mine...and more. Second, If I die early (statistically before 76ish) the above scenario plays out. If I do not, we'll continue to save and build a nest egg and pay off the house. At that point we shouldn't need life insurance. There's no one to insure my life for, kids are gone, just wife, she's got money and no debt. At that point we can hopefully save more or spend what we used to pay for life insurance. Third, All the insurance company is doing is buying a term policy on you and investing the difference themselves to build up a value. Probably a little more to it than that, but that's essentially what's happening. Fourth, Lets say that you need some cash and have to borrow some of your cash value. I can take some out of my roth at 60 tax free and penalty free. If you borrow from your cash value, you have to pay it back plus interest and when you die, if you took out say $50K, your family only gets the $200K less interest assuming you didn't pay it back. Fifth, Lets say you pay it all back plus interest. They'll still only get the face value and nothing more...they keep your cash value. Lastly, remember, huge commissions get paid on these types of policies...giving incentive to sell them. Why? They must be making money doing so. They keep your cash value and all they earn on it while they've had it. They wouldn't offer them if not making money doing so. Just my thoughts. Thanks for your attention.

43

if I am diagnosed with cancer. LRH August 17 2010 12:02 PM We must stop comparing rates of returns of stock market vs. Everything he says makes sense. By the time I am done I will have paid just over 90k in premium and that 250k will be there forever. policy 10 months ago. Steve September 16 2010 1:15 PM Can the WL folks tell me why I would want a savings plan that takes 1-3 years to accumulate any money in. This is a great theory if everyone too that extra cash and invested. I am an Insurance agent and I purchased a 250k whole life 20 pay. and you still have liabilities that will likely need covered. And honestly. It will grow at a set rate of return every year. it's a great time to consider allocating some cash flow to safer investments. averages a little over 1% rate of return in the first 10 years (what's 4% of 0). not risky like your stock mutual funds. you can guarantee that your life insurance premiums will be paid if you become disabled. but I can't help but feel 44 . Please know that just because YOU may have the money for your plan. for as little as $6 per month. Clint August 08 2010 5:03 AM I just met with my financial advisor and he is really doing some serious arm twisting to get me to buy cash value (whole life) as a hedge to help fund our daughters college education. I may be unable to work. BTID is not a panacea. cash value. Traditional cash value life ins. you are 53. He is single and in great health. It is a traditional whole life with the benefit of additional paid up riders.Life insurance Mark September 20 2010 5:12 PM I could not disagree with you more. let me think. or worse yet lost completely. with the indexes doing -5% to -40% over the last ten years..o. Doug. Most people don't die with their home paid off and all of this extra cash in the bank as I have read in your articles. have to borrow and pay back with interest to use it. who stopped paying premiums and his cash value continues to increase. which makes it an outstanding vehicle to have for safer allocated moneys. I may not be able to afford the premium on my life policy. The premium waiver is a blessing to many people who get cancer or are in a tragic accident and the household income is cut in half. My wife or my kids will get that money no matter what. take a look at or google bank on yourself. and if I die. Hard to see an investment doubling when money is syphoning out of it every month. I'm getting a term policy that is guaranteed renewable to age 95 (what's not permanent about that?) and doing my savings in seperate investments. You are correct in thinking you need whole life. You never sell a premium waiver?? Do you know what a premium waiver is? For a little extra per month.it's a great vehicle to save cash. He is in graduate school and really can't afford this much less even need life insurance at all. Pretty good deal if you ask me. What are the downsides of canceling at this point? Thx.L. Now. I have seen it work in my life and I thank God there was a premium waiver in place. I wish you the best. Christina Smith August 26 2010 11:09 PM We just found out our 21y. my family would only get the face amount of my policy minus any loans with interest (7-8%)? Any wonder why people don't understand their policies? Unfurl your policy and read it and ask yourself if you truly understand it. Are you looking at "Guaranteed Value" or "Hypothetical Value"? Probably Hypothetical because your premiums aren't waived. you are just paying for them from your cash value. which I am most in need of if I have cancer. Kayla M August 16 2010 5:50 PM Robert Brown. But I will only address one. is in the safe asset class. this is not reality for the masses. Dean August 29 2010 6:45 PM The video clip of the Zander insurance guy makes me upset on so many levels. the ability to borrow cash within the first year and offers (not guaranteed but has the last 100 years) given a dividend. my family will get both the full face amount of my life insurance policy and my investments guaranteed. If I can't work. I have term and WISH I were able to purchase whole life right now. Every single persons situation is unique.. son bought a W. Gee.

I'm a Certified Financial Planner and have been in the industry for 26 years. I'm sorry that the industry let your family down. But perhaps no one has ever told you about Mutual Funds and Dollar Cost Averaging..000 so my beneficiary receives $115.the only issue the insurability of the client.000 and only paid in $50. are we doing the right thing here? He's throwing a lot of information at me that. and after 18 years just in the cash value plan we would have approximately $100. yes. I currently have $1M in term with 6. Rick August 02 2010 11:44 PM I am a Insurance Agent and a Branch Manager of a financial Institution I'm sorry to those that think other than this.Yes I know about mutual funds and dollar cost averaging. I know more now. Your Investment would have yielded exponentially more than you have earned in your Whole Life Plan. So much depends on what your goals are. Yet you are paying for both.. My plan was to put $1000 away over the next 17 years with $750 going into mutual funds and $250 toward a cash value plan. Wanda August 04 2010 9:47 AM One size never fits all. From everything I have read if you keep your WL policy more than 10 . And to those you use the word 'and' when speaking of death benefits and cash values. term and why term is such a better deal.. You are always better Buying term and investing the difference when you are starting off. or with a broker (and you probably couldn't with only $43 a month) you would be taking a great risk. AND YOU GET TO KEEP BOTH WHEN YOU DIE. As for "buy term and invest the difference. Harold August 04 2010 8:24 AM Wanda.000... etc. For anybody else look in your own policy and look for the "either insurance or cash value" clause read between the lines and inquire to the Insurance company (not the rep that sold it to you) Ask them If I die do I get the Face amount and the cash value for a total value of $abc and give the total of your face amount example $100. Robert Brown Robert Brown August 04 2010 6:53 PM term is great and affordable. Term is better for ALL involved other then the agent and the company that tells you otherwise. I didn't know a lot about life insurance back then. More often than not I advise my clients to go with term insurance. My question is.if they develop a serious medical condition the chances are obtaining more life insurance are slim.5 years left on that contract. quite frankly I just don't understand and is leaving feeling lost. Whole life you pay interest to Borrow your OWN money That's dumb. As Harold said "one size never fits all". the proper word is 'or'. You can't be both dead and alive. If you are part of the unfortunate masses that has been told other wise and are stuck with your whole life policy as now you are not able to get other insurance due to health reasons. how much money you have to spend/invest.000 and the Cash Value of $15. a good choice.as it does better the longer you keep it. I hoping someone here can give me a little more insight as to the difference between whole life vs. In fact I have invested & still am invested in a quite a number of mutual funds. I've run the numbers. to advise them to go with term 100% of the time in 100% of the circumstances would be malpractice. so we have a ways to go before we need to start spending on her formal education. I started with this years ago and it is true. You get one if you live. However. if ever. If you're spending the difference and not saving. What about the person doing advanced estate planning? Term life is rarely. If you die they keep the "savings" If you take the savings the insurance terminates! The saving difference (achieved with buying equal face amount term ins and investing the difference)even invested in a BANK MONEY MARKET account will be more than your policy has accumulated. I am 53 and my daughter is only 18 months.000 right? Be sitting down when you ask this and be sure that you give them the total 45 .. What about the person who develops a health condition before the term of the term policy ends but still needs the insurance? That person must renew at the guaranteed renewal rates and they will be much. much higher than whole life or universal life.. the other if you die.Life insurance there is something more in it for him than if we just set up a education plan using mutual funds. But I can do both can't I??? I can buy a term policy & a WL policy if I want to.what happens if your term expires and you are not insurable.15 years it is very much worth while to continue to keep it -.how does Dave answer that?? David August 04 2010 11:19 AM Rick -. if you were to 'play' the stock market on your own. what your plans are." it's a great idea but the vast majority of Americans buy term and spend the difference.. you're ignoring valuable Biblical principles.

most people chicken out from the large premiums but we have paid them faithfully and are reaping the benefits. It was an extremely large loss. But to say that term is always best or whole life is always best isn't correct.. I'm an RN who is now a farm owner..000 policies. IF I had picked the "right" investments in the stock market I potentially could have a lot more money now than I do with my whole life policy. We now have a cash value of $133. They legally can do this as the Cash "Surrender" (they skip this word a lot) Value is part and parcel of the death benefit so all they do is reduce the face amount by the exact value of the Cash Value and give you the face amount. I am not an insurance agent. I have borrowed against it a couple of times and paid it back because you are paying yourself back.. are you saying that your term police has a cash value of $440. Or is that your death benefit? I also have a term life policy. If you would have invested that $43/month in the stock market from 1074 to the present assuming an 8% return (which is actually lower than what was done) you would have 435. Patti August 01 2010 7:03 PM Get a quote on whole life. My term life policy which is for the same amount of coverage has not done near as well as my whole life policy. B July 30 2010 6:37 PM i have been fascinated by others comments. The cash value is added to our $150. Once I'm A millionaire-----I won't need the term! Become self insured! Also. I am still a strong believer in term life and investing.. You have to find out all the information and decide what is best for you.000 with you only paying $20/month. Learn about what you really own before you get on some "blog" and whine about what "did" happen to you. We are thrilled with this investment.. your just not educated enough to catch them "in the act" Corey August 02 2010 6:53 PM 1) Scottie. or what "didn't" happen to you 'cause it did. Problem is. but many of them seem like questions. Cash value OR death value will be HUGE when we are ready to use it (we are now 58 and 64 and healthy and still working). Wanda August 02 2010 8:51 AM My husband and I have whole life. Believe in Dave and don't listen to these whole life agents. My variable life insurance policies are the worst investment I ever made. is there a place where someone answers? long time listener luke July 30 2010 4:43 PM 46 . 2) Yes. this enables them to answer the weak question of "do I get both with a "YES" when the question has been asked correctly they will answer "no" Then go find a term insurance that fits your needs. But here we are talking about whole life & term life. B. Thank the Lord the majority of my life insurance is term. Reality is less than half of their projections. then buy term and invest the difference! Cash value of $66. I just pulled out the projections my whole life agent gave me in 1985 for 2010. I plan to cash them out as soon as the market recovers a little better. SAB scotty B July 30 2010 8:56 PM Wanda. The cash values are less than I have paid in and would disappear if I died tomorrow. BUT that is an IF.000 and growing exponetially after this many years. 3)Chris. and not considered a debt. Plus my husband lost over 1/3 of his investment on his retirement in the stock market during 2008.000 term for less than $20 a month. I'm talking about what I have.. not "assuming" what I could have made which is a big assumption. I do also have investments in the stock market. paying on it over 20 years with Mass Mutual. not the stock market.Life insurance otherwise they will answer yes.000 is a joke! I have $440. when you die with whole life---the insurance company keeps the cash value! Chris July 31 2010 8:56 AM These comments are obviously posted by insurance agents.000 today.

I'm very happy with my Whole life policy & someone who has an older one like I do should look at it very thoroughly before changing it out. We both have term life insurance policies for $1 million. even knowing that Dave recommends term life insurance. I don't really understand the VUL that well. but you shouldn't blanket statement. lawyers etc. Term insurance is money lost because it hardly ever pays out because the cost of it sky-rockets at later ages. estate taxes will have to be paid. $1. say.978. You might want a small 5. You likely will need insurance after you retire .15. god forbid they pass. The quotes I got were for 20 and 30 year terms. you can figure that out. and property to pay for that.. but not for long.Life insurance My husband & I bought Whole life insurance policies back in 1974 with Northwest Mutual. Dave July 30 2010 1:19 PM I just renewed my whole life policy for another year. Wanda July 30 2010 2:05 PM As a Financial Planner I agree with everyone purchasing Term Insurance in their younger years. and secure guarantees for retirement. probate fees.000 policy on them just in case..if you're successful. we have a Variable Universal Life Policy. In response to those who ask what happens after 10.. " Ted. In addition.000 on them.. Facts are. especially with some guarantee options that allow them to continue the policy or convert to permanent insurance in the future. But since you don't depend on them for income for the house. if you end up with all this money won't it be mostly lost once you and spouse have passed? The estate tax may be 0 now.00 a month for a $50.if you're not successful. What happens if I outlive the terms? Then I have to apply (at a much older age) for new insurance. mutual funds. maximize income planning in retirement years. I'd rather not liquidate my assets to pay the taxes. etc? I don't want to liquidate shares of stocks. However. Sherri July 30 2010 11:06 AM "T is completely right. how to get out of it? Emily July 30 2010 11:27 AM Why do you need life insurance on your children? You don't. If you have been doing the techniques he teaches by the time your term ends you will have enough saved/invested that you will no longer need to be insured.Dave Ramsey explains that in his Financial Peace University lessons. Don't I need life insurance to pay the estate taxes and probate fees.term but there is.000 life insurance policy. Ben July 30 2010 1:35 PM Whole Life insurance is the best long.576 into this policy.418 & a death benefit of $128. Ken July 07 2010 1:46 AM What should I do if I have term insurance and I have accumulated. or 30 years when your term runs out. as a supplemental policy and one that we can save money in. and have my heirs get 25% of what I had. Dave teaches that you need insurance on you and your spouse up to 10 times your annual income. I'm extremely happy with how mine has done. just so you can bury them.000 and I'm at an age where my policy has expired. you really don't need to put 250. blanket statements that there is NO PLACE for permanent insurance for anyone is an irresponsible and wreckless "opinion" to be expressed in a public forum as "fact". To date I have put $18.000. Jen July 30 2010 1:17 PM My husband and I are 34 years old. I am willing to provide actual examples to show the benefits of this kind of specialized planning for high networth and High income individuals. well. I am still paying $43. which wold cost considerably more at the higher age.000-10. Many people who sell Permanent Insurance do so inappropriately.. I'd rather have my hard earned money and assets go to my heirs than 47 .. this was recommended to us. Your kids don't have an annual income so they don't need it. is this something you recommend? And if not.. It is worth a cash value of $66. for High Net worth and High Income earning individuals. I don't see how term insurance is the way to go. Permanent Life Insurance SOMETIMES provides very powerful Cash Flow planning and Estate Planning tools to minimize risk.

No long term care.Life insurance the government. but rather just said "term life is the way to go because whole life doesn't have value to the consumer" but no reasons to back that statement up. My mother is not finacially secure. Lincoln. We have been paying into them for approximately 3 years. What are the consequences of "firing" our insurance man today? Kim February 25 2010 8:20 AM My wife and I both have whole life policies.5%. Debt free is great. way better than my bank 48 .00 monthy split between the two of us. self insuring is not always smart and passing wealth to another generation is an amazing selfless act of generosity. Pymts would be aprox $120. AND. I just found out that a living trust doesn't do anything to protect assets from taxes and probate. Keep an open mind and open heart! Greg Chambers Greg Chambers April 30 2010 7:09 PM This didn't me the difference between term or cash value. it's now twice what it started out being 18 years ago. Good chance of it being a better investment than many ROTH IRAs. Many people could benefit by picking up the tab on a parent or spouse term conversion. Jeffery March 02 2010 1:45 PM We bought into a whole life policy about seven months ago and want out of it. My sister and I are owners of the policy. Jason Barrett March 17 2010 1:12 PM My mother is 68yrs old. Should my sister and I consider turning mom's term life policy into a variable universal life policy? Policy would be till age 90 and worth $50. I was not educated by this video. Sun Life. I would like to hear more about using a stronger company's term policies and converting it at the end of the term (at the insured's original's health rating) to actaully make the insurance company pay a tax free death benifit and create family wealth even after a family is debt free. the death benefit continues to grow. Many successful sales and marketing pros use the "One Size Fits All" strategy. John Hancock and several other carriers are not endorsed carriers. Jason June 07 2010 7:09 PM Congratulations to Dave and Jeff for successful businesses.000 till age 70. Kim March 16 2010 1:36 PM Do I really need life insurance and if so what should I be willing to pay for monthly premiums? Joe March 09 2010 12:38 PM What about estate taxes? I just came from a meeting with an attorney and he recommends universal insurance to make sure someone else is paying my death tax. Since that time the cash value has doubled even though the premiums are being deducted from it. Wonder why Prudential. $20 a month should I keep the policy or quit paying on it. etc. at this point should I cancel them and focus that money elsewhere? Brian February 23 2010 7:49 PM I stopped paying the premiums on my whole life policy after about 9 years. Getting confused! Ken July 07 2010 1:11 AM I recently purchased a $25000 whole life insurance policy on each of my two small children. She has a term life ins policy of $50. Between 2008 to 2009 the cash value increased by 5.000. Those small term providers are often a nightmare when conversion makes great sense.

. Doug February 19 2010 10:57 PM My husband and I were fortunate. If I only knew then. now I'm wondering what we will have to pay if we cancel and take the cash to pay off our debt. they just keep chugging along with steady returns and very little risk.I fell that any decision I made is the wrong one. What level of success will I need in order to not need or want it? I'm 38 with 2 young children and I am concerned what I might want when I am 58. we paid into whole life policies for years but we actually are making money by surrendering them. Sharon Wants It. blah" market conditions never came up when we first bought in.000. What we have in cash value on both policies would wipe out our credit cards plus a good chunk of our equity line. but. My question is do we want to have the federal income tax withheld? I know we have to pay taxes on it at some point..000.There is 25 years difference in our ages and althought I still work this insurance was going to be my only insurance for the future.00 per month. Suggestions? David January 25 2010 4:39 PM I am 70 and haveterm life and it is about to expire what should i do can i get this money back or will i lost it doris g January 17 2010 3:47 PM I am so confused now. It should be a long term commitment or not at all.and we pay $50/month on $200. We have decided to drop to $50.. Should we cash out now for @$3000 and switch to term insurance? He is close to 50 now. blah... How much of the the cash value do you get if you cash out? Beverly January 04 2010 1:56 PM Penny T. convenient? Well. but cash values never go down.. Well.. Vic January 03 2010 7:37 PM To Ryan: Return of Premium Term..so much for peace of mind. I know I want more for my family now then 10 years ago. I'm certain that I have heard him say that he himself has more than 10X his income in life insurance because "SWI". I get nervous when I hear this b/c if he stills wants/needs it after his success.Life insurance savings. They company told us that the policies would be paid off after 13 years.00 still making the payment around $500... Where can u guarantee that Richard January 01 2010 1:58 PM 49 .my husband has a 20 year term for $100... We thought we were doing something good for our future. If that trend continues then my current plan might not be enough down the road and my genetics my cause health concerns in the next 20 years.You would have to earn a guaranteed 6% net.. here we are 15 years later and still paying $185 per month (combined) and still not paid off? Now they are saying "due to market conditions. after-taxes return on that extra $13/month for 20 years to have $6000. and way-way better than my big losses in stock market investments. My husband has universal insurance since 1994..I am also in the same place as you only the nightmare has already begin. Cash values may not match the stock market in boom periods. We will make about $7000 from them.000. I would have gone for term.Any opinion? mika January 07 2010 11:43 PM My husband and I bought 2 whole life policies shortly after we bought our first house. I guess I just don't understand which way to do it or how that works? Deb February 01 2010 9:51 PM I think there are some good ideas here but I get confused when I listen to Dave on the radio.. and I am wondering switching at this age is not worth it.00 and at age 84 the rate have become unmanagable. I'd say don't get into one of these policies if you're going to chicken-out after 4 or 5 years.. blah.

There is new term insurance out called Return Of Premium Term. funeral expenses add up (12K+) and parents are ready to return to work full-time or at all.. I can purchase a 20 year term life policy with a death benefit of $100. it is about burying them (having a service) and then replacing the income of a parent that wants to take time off to mourn the loss of a child. that would double to over 100k in another 6 years! I know the agents try to tell you they might not be able to get insurance if they get sick but what are the real odds of that? If they did get sick. the premium is guaranteed for 20 years. Ryan December 27 2009 4:58 PM Re: Kara's kid's policies. all of the money that I have put into the policy.. supportive jobs all my life.00/month. since you have already paid taxes on it. Steve January 01 2010 12:21 PM Life insurance on Children is not about replacing a childs income. they still have something there to pay burial expenses..it is temporary insurance. I will pay about $26. why does anyone need life insurance on kids? Life insurance is supposed to replace the "income" of the insured if they die so that those depending on that income can keep living. but will never see that money again.00... I will get back $6240. Dlynn December 30 2009 4:04 PM My husband has term life that will begin to increase in premium by a significant amount when he reaches 65 (he is 62 now)..I've just purchased some on my wife and I. when the term expires. they don't need to be insured.not about replacing income.but for those who are not debt free.. I'd suggest to younger people to purchase a small whole life policy.. I will not receive his largest pension should he die before me.you pay for the services and quit your job and live off of savings. The premium is about double a regular term policy. and certainly better than whole life.. That way..maybe $25K death benefit and then buy term to cover the majority of the need. She doesn't mention how much the kids' policies cost but if she would have began investing only $20 per month for them at birth at Dave's example mutual fund rate of 12%. even not adding any more $$. how far would 50k insurance payout go for their dependents anyway? Would the be able to add more coverage if they were sick? It is a high price to pay to "guarantee" insurability for a kid! Terry December 27 2009 9:56 AM Another good option is return of premium term life. Jessica December 16 2009 2:15 PM 50 .000.you get 100% of your premiums back at the end of your term if you are still breathing... So now that term life policy has become important.00. it would be worth more than $6240 probably a whole lot more. This amount is non-taxable..medical bills can come in fast..00/month. but the advantages are great. For example. Then..00 for $13.if your debt free and have the savings then no big deal. by the time they were about 28 yrs. And. I have no pension as I have been a housewife with part-time.Life insurance Great discussions! Kids life. However. we will not be able to afford the premium once it begins to increase. At the end of 20 years. So unless they are wealthy child actors or have really high paying paper routes and mom and dad can't live without the kids' salary. old. I will have paid $3120.00. Trust me I know! Now yes I do understand the concept. He has 2 pensions and Social Security. if you took that $13 extra a month and invested it for 20 yrs.000.I agree with Dylnn. As far as term insurance. What should we do about life insurance now? Should we let the term policy expire and not continue to pay premiums or get new insurance? Penny T December 29 2009 3:08 PM To Jessica.... you get all of your premiums back. He was forced into retirement at age 60 and we were not prepared for it at all. the dividends in that whole life policy are yours and can help increase the death benefit if set up correctly. At the end of the 20 years. If I instead purchase a 20 year term return of premium policy with the same death benifit of $100. ready to get married and have someone depending on their income... To me.like a term policy. but dealing with expenses. they would have over 50k saved anyway. but at the end of the policy term. this is a far better investment than a standard term policy.

in the amount of the premium difference. and then every so often pull those savings to pay down debt. but there are some huge risks involved." you get denied for it when you try to buy it in your 60's (it's not the easiest insurance to get approved for by any means). the spouse should be OK in the end. then even 30-year term insurance was temporary. and Long Term Care can easily drain an outrageous amount of money between what Medicare and Medicaid cover. TLW November 24 2009 7:33 PM My husband and I have term and our kids have whole.What money? You're policy premiums? You don't get those back. In response to those who ask what happens after 10. The money you do get back with whole life is your investment/savings portion. the premium difference could be transferred directly into an investment account. die. either. a good plan would be to *immediately* set up an automatic monthly bank transfer. after the FFEF is in place. He said that the company we're with(Northwestern Mutual Life) doesn't have them and he doesn't believe in them. The "living benefits" sold with whole life are that you will have cash available to use if you needed it.Dave Ramsey explains that in his Financial Peace University lessons. I guess my question is. not theirs. your term runs out. If someone doesn't have the discipline to do that.. and then if you don't pay it back they reduce your life insurance coverage by that amount. Ted November 25 2009 6:17 AM The key to this is having the discipline to save and/or invest the price difference between a whole life policy and a term policy. So you save for 20 years with this whole life. For someone switching from whole life to term insurance. and saves and invests all through those years.. minus RIDICULOUS surrender charges. One of the great benefits of term insurance is that you can purchase much MORE coverage for much LESS money.Life insurance T is completely right. He went on to explain that you do get that money and can get it tax free if you "do it right". You have to pay the life insurance company 6-8% interest UP FRONT in order to use YOUR MONEY. they probably should not switch. If you have been doing the techniques he teaches by the time your term ends you will have enough saved/invested that you will no longer need to be insured. the family will be in far better financial shape than they would have been with a smaller amount of whole life. and bury it in the back yard???? Why would you give someone YOUR money and then be charged interest in order to use it? Why would you combine your savings with your life insurance and forfeit all that savings upon death? And of course the argument with whole life insurance supporters is that you'll need life insurance later on in life.g. our biggest killers aren't killing us any more but they are disabling us. Why would you not just save the money. What if you listened to Dave on the radio the other day when he said "don't buy Long Term Care insurance in your 50's because statistically nobody uses it until their 60's. Their insurance doesn't just insure anyone.. "Buy term and invest the difference" works great when the market is soaring. they'll never have a chance to get used to spending that money on normal living expenses. after all the debt is paid off. What do you do if the market tanks.what do we do w/our kids' insurance? They are 9&11 and have $50. I will first say that he has always been more of the "teacher" type and not just a salesman. put it in a jar. if the insured person lives to a ripe old age. 51 . the money you are "investing" (I use the term looooooosely) is not even yours upon death. And w/whole life Dave Ramsey is right w/95% of companies but. If you have whole life insurance instead of buying term and investing the difference. e. you probably WILL need life insurance when you're 90 BECAUSE YOU'LL HAVE NO MONEY SAVED! T November 22 2009 3:55 PM If you live 31 years after you buy a 30-year term policy.15. We told him that we'd like to put our kids on a rider and cancel theirs. What if the kids develop asthma or diabetes and they won't be covered under a new policy when they want one. and you end up self-insuring for your LTC with the money that you planned to self-insure your life insurance. Not any of the cash value.. Well. or 30 years when your term runs out. Someone still in the process of getting out of debt could start by having the transfer made to savings. People are living longer than ever. That way. WORST INVESTMENT IN THE WORLD. the premium difference transfers could go toward the fully-funded emergency fund. with your whole life policy. On the other hand. to a savings account or an investment account. In fact. After learning about insurance in FPU we set up a meeting w/our agent. too. the industry basically creates its own market by telling you that.000 policies Kara November 24 2009 6:38 PM Dave . and/or you're uninsurable. You have to complete blood work(my friend couldn't get insured because he was diagnosed w/diabetes at 32). So if someone dies while the term insurance is in effect and they still have a young family. and your survivor only gets the face value of the policy. You don't get them back with whole life.

But here's how you can save money: consider switching to a Health Savings Account (HSA). expensive health insurance plans of PPOs and HMOs. that depends on you and your needs. Here's how much one listener saved: I just wanted to thank you for saving my daughter thousands of dollars on health insurance. you have to read the contract and know the limitations of it. After meeting with them I will let them handle my insurance needs going forward. Not having health insurance isn't an option. healthy. When they told me that I could get better levels of insurance I wanted to see what they could do. If you're young. Health insurance costs seem to increase every year for most of us. better service.. Get term insurance when you are young and just hold onto it. and from a company that I can now trust. 15 or 30 years older? Won't the cost of insurance be extremely expensive or maybe you have been diagnosed with a dreaded disease and will no longer qualify for life insurance? I believe you need life insurance in place on the day you die and term insurance doesn't always work that way. A typical HSA can save you hundreds of dollars a month while still providing you with quality health coverage. Hey. Al Cordera October 30 2009 9:36 PM I understand the concept of needing only term insurance. What happens when the term runs out and you are 10.but there are many people that will not live by that rule! How to Save Money on Health Insurance Ask one of Dave's health insurance ELPs if an HSA is right for you from daveramsey.com on 02 Sep 2009 Share Email Whether you're single or have a family. Your Endorsed Local Provider [ELP] set her up with an HSA. Think that high cost gives you an excuse not to have health insurance? Think again! Unpaid medical bills are one of the biggest causes of bankruptcy. She's saving $350 a month on premiums for a family of four! —Bonnie in Florida 52 . I have better insurance. one of your biggest expenses is probably health insurance. Buy term and invest the rest is a great theory. How Much Can I Save? Well. then an HSA can be an excellent alternative to the usual.Life insurance David Hamilton November 19 2009 3:57 PM What happends after the term life policy expires? Where does the money go? Dave November 02 2009 2:42 PM After taking Financial Peace University.300 for coverage in 2007. families paid an average of almost $3. And you are correct. HSAs are great for people who don't go to the doctor often. whole life. you're not alone. According to US News. or have grown kids. I investigated several insurance companies and decided to let Zander Insurance handle my insurance needs.. Kevin Eldridge November 01 2009 1:23 AM You are 100% correct on your assessment of term vs.

which is $1. Whole Life Insurance Four Must-Have Insurance Policies How to Save Money on Health Insurance Who Needs Long-Term Care Insurance? More About: Insurance © 2011 Lampo Licensing. This really started to annoy me when it came time to get married. Before you make any change to your insurance coverage. my premiums are $57 semi-monthly. Often times a private HSA can save you more than your company HSA. AJ December 29 2010 12:29 PM We converted to a HSA about 4 years ago and it has been wonderful for us. The premiums started out moderate enough but kept increasing over time. My company offers two other plans with lower deductibles ($2000 and $1000) but they cost $369 and $463 per month respectively. LLC.Life insurance With the money you'll save. we have never met our deductible and I just write a check or swipe a credit card for all my health charges. Getting Started With an HSA Many companies now offer HSA plans along with their traditional plans. My deductible is $4000 for my family but I only pay $57 bi-weekly for a premium. dental cleanings. It costs over $350 a month just in premiums for the two of us. or lab tests.476 per year. I'm still coming out ahead with the HSA plan. it's best to get the advice of a health insurance ELP. Even if I meet my deductible I'm still only paying about $5. All rights reserved.000 per year or $417 per month. Jeanna November 09 2010 7:45 AM I have had a high-deductible plan with an HSA for the past year.000 in medical bills during the year. Is an HSA a good option for you? Ask one of Dave's health insurance ELPs. my employer contributes $500 yearly to the HSA account. I also put $80 bi-weekly into my HSA tax-free. This is the best option for families that are healthy and just starting out. It didn't make sense to me to be paying high premiums for an HMO whether or not we got medical care at a hospital. And even more importantly. and that is just premium costs alone! So. We are empty nesters and even though I had some health issues for a couple of years. the balance rolls over at the end of the year and is there permanently for us to use when we need it. then talk with a health insurance ELP about setting up a private HSA for you or your family. We are currently investing the surplus in our account in a mutual fund so that we can earn more interest and hope to eventually get to the point where we can pay all of our medical expenses out of pocket and just use the HSA as a savings account. Just remember that your individual health needs and the area in which you live can drastically affect your options. you can pay off any debts or invest that amount toward your retirement. Post a Comment Years ago when I was single I used an HMO plan for my insurance. If you're company doesn't. no out of pocket expenses so far. there is no cost for routine physicals. if I don't need much health care I'm saving a TON of money on premium cost alone. With the HSA. Getting coverage for me and my wife was way more expensive than I had expected. That's when I decide to consider using the High Deductible HSA option offered by my employer. 53 . even if I rack up $4. Obviously your options will be different but give the HSA plan a serious look. Top Articles Term Life vs.

Should we supplement this with a very high deductible health insurance policy? We would have to pay this out of pocket. Unfortunately. visit--we paid "20% of the allowable charge" (after we had met our $3. Keith Swartzbaugh April 29 2010 5:06 PM My husband and I would LOVE to have an HSA and have heard Dave Ramsey talk about it many times. Is HSA a possibility for us to offer? Amy November 10 2009 12:51 PM 54 . ML in Ohio December 03 2009 8:05 AM I don't see where anyone mentioned that the contributions you make to a Health Savings Account are deductible in determining Adjusted Gross Income. Jim June 01 2010 12:35 AM The faith mission that I work for is switching from regular health insurance to a Christian Co-op plan that shares the medical bills (health sharing plan). You are supposed to document all your withdrawls from the HSA. physician visits every three months.000 deductible). mail it. Your deductible is a lot higher but if you rarely go to the doctor/hospital when you do finally go you should have more than enough in your HSA to pay the deductible. any suggestions? Nicole September 24 2010 10:28 AM I am pretty sure you can only have a HSA if you are self employeed or work for a small company with less than 50 employees. HSA accounts are great for healthy people. Kelly Conway December 02 2009 2:10 PM HSAs (with high deductible healthcare plan) can save money but the paperwork is kind of a headache compared to a traditional PPO. High deductible. If you never go then you save thousands by not paying high premiums for health coverage you don't need.Life insurance Andy Barker October 12 2010 10:32 AM I am a single person and have all regular checkups each year (obgyn. which require monthly medications.. lab work..eyes (for contacts)& physicals. It costs me a lot. That's when I'm in remission or healthy. periodic MRIs. My employer only has HSA coverage. save a copy of the check and bill. and we pay $732 month for $7500 deductible. Would an HSA account through my employer save me that much money? I feel like I would be paying out of pocket more than I would for the co-pays.48 for Dr. We'd get a bill for an odd amount of like $12. We are self employed. Instead of paying $15 for a Dr. It only saved our family $120 a month over the PPO option. If it were a larger cost difference--it would be worth it for sure. visit for which I'd have to write a check off my HSA. Angela Cutter November 14 2009 2:55 PM We as an employer are checking into a different group insurance plan for a very small company. Deb Solko March 26 2010 8:22 PM HSA is a great plan for people who are healthy. we both have pre-existing conditions and have been turned down for an HSA more than once. dental cleanings). in our mid 50's with pre-existing conditions. Pay smaller health premiums and pay the difference to yourself (HSA account) which is also tax deductible another great bonus. it is costly. If I'm "sick" it is very expensive. I unfortunately have two chronic illnesses. By the time we fulfilled our high deductible--I think we were better off with PPO because we have high healthcare cost. For those of us who are not blessed with good health. This is reality for most self employed people our age.

Later in life. Great idea made better by a generous employer. We are responsible for the first $3000/year out of pocket for any health care (ie. $5850 deductible and 80/20 after that. pays for the things that would "break the bank". It earns interest. when Joe was 67 years old. This money we put into our HSA is ours FOREVER. We receive discounts for using provider approved doctors and hospitals (which in our area is just about all of them). and I have not looked back. WE ARE LEARNING AS A FAMILY TO USE OUR MONEY WISELY. the geniuses responsible for the health insurance coverage did not have a rider on the policy for out of state employees. That would also help decrease the demand for medical care so more people could actually get in to see a doctor. Dr. 55 . prescriptions. and you will find!! Eric C. It is WONDERFUL. It is to be spent on healthcare (including insurance premiums -. The best part is the business contributes $4000 to a prepaid debit card that we use for the deductible! The balance we can use payroll deduction on a pretax basis. At first. Mirarchi November 01 2009 11:55 AM My husband's work uses a HSA. they were headquartered in Maryland. Well.000. But just going to the doctor because you have a cold can have a "real" cost of $150+-.com on 30 Sep 2008 Share Email Joe and Susie were a young married couple of equal age. We have decided to continue funding this account up to the limit each year for the time being so we currently have over $3000 in it. and allows us see what the "real" cost of running to the doctor costs.if medicare is still around then).if the doctor orders a throat culture or viral culture there is added lab test costs. People need to learn more about the "real" cost of running to the doctor for things the doctor can do nothing about. We do get one free yearly physcial and the recommended procedures/tests for our ages completely covered each year and the children get the recommended vaccines completely covered. I was paying over $734/month!! I had enough. Therefore. it wasn't too bad. and found out about the HSA. But as his condition worsened. My monthly premiums have dropped over $600 a month! you really can find much better. office visits. I think this plan is the BEST. this is the best deal I've had since the Army! $25 per week for family coverage. If we don't use this $3000 it is OUR money and continues to grow. we were paying what amounted to self-employment rates for our monthly premiums.which we plan to use when we retire to help supplement medicare preimums -.Life insurance My employeer offers an HSA coupled with a high deductible BC/BS plan. Joe had to go into a nursing home. up to a total of $3000. Just seek. unfortunately. but they worked hard and built up a nest egg of $300. and we were in Pennsylvania. I searched around. then we are covered 100% by our insurance company. They weren't always smart with money. End of year balance rolls over with no tax implication until retirement. he developed Alzheimer's disease. Our responsibility for health insurance premiums is only about $65 per pay period (twice/month) for a family plan. If we spend over $3000/year. Susie used some of their nest egg to hire a homecare specialist to help with Joe a few hours every day. tests/procedures). and less expensive health insurance. I found an insurance company that would insure individuals. We all need to be much more responsible for ourselves and stop thinking "someone else" will pay for us!!! Patti Lanzer October 31 2009 11:24 AM THANK YOU. I had insurance with my company. Terry Lewis November 02 2009 11:55 PM Years ago. hospital costs. His work puts $1000/yr into our HSA and we fund the rest. Most people have no idea what a doctors visit costs because they only pay a $20 or $30 co-pay. Who Needs Long-Term Care Insurance? Are you at least 60 or have a parent who is? from daveramsey. It encourages us to take care of ourselves.

Do you really want to count on the government to pay for your LTC? I say no way! When to Buy It Only buy LTC insurance when you turn 60. Not having LTC insurance can be a $300. but as people age or become ill. if you have parents who can't afford LTC insurance and you can afford the payments. Long-term care (LTC) provides people with those services. they might need help doing daily tasks like getting dressed. However. Find your long-term care ELP now. When you turn 60. But Dave. but it happens to thousands of people every year. the probability of having to stay in a nursing home increases dramatically. Most health and disability insurance won't cover it but long-term care insurance will. Why You Need It According to the American Association of Home and Services for the Aging. Susie. then you can buy it for them. On your 60th birthday. long-term care is really expensive.000 to $400. Joe passed away from old age. is healthy as can be for a lady her age but works full time because her husband's stay in the nursing home devoured most of their nest egg. and more. What you've just read is sad. Doing that is called fraud—a federal crime and the government will prosecute you! Also keep in mind that the government is already having trouble paying for those on Medicaid. you can keep it from happening to you. now 72.Life insurance Sadly. I'm a huge fan of this insurance. If you become ill. it ensures that your spouse will have enough money to eat and your kids won't be burdened with huge payments. 69% of people will need some form of LTC after age 65. All rights reserved. after five years in the home. won't the government pay for my long-term care? They will if you qualify for Medicaid. They'll answer all your questions and help pick the right insurance for you. the government program designed for people who truly don't have any money. What is Long-Term Care? No one likes thinking about it. A lot of times people try to cheat the system and move all the assets out of their parent's name and get the government to pay for LTC. Where to Get It If you're at least 60 or have a parent who is. buy it immediately! However.000 mistake. Whole Life Insurance Four Must-Have Insurance Policies How to Save Money on Health Insurance Who Needs Long-Term Care Insurance? More About: Insurance © 2011 Lampo Licensing. bathing. Now you may be thinking. LLC. Unfortunately. Post a Comment 56 . speak with one of our long-term care ELPs. Top Articles Term Life vs.

Jenleigh September 01 2010 8:59 AM My husband has Parkinson's disease (age 53) so he doesn't qualify for long term care insurance. MetLife is no longer writing individual policies. and huge numbers of policies are being written.000.Life insurance Can anyone tell me the advantages that Mr. If you are 60. I am trying to decide if I should purchase it for myself. Conseco Long-Term Care is insolvent. The future claims payouts will far exceed total premiums paid. there's nothing to ponder. Ramsey is considering when he says wait until you turn 60? I really see no advantage. your policy will have collapsed.. My mother must care for his daily needs because they don't qualify for assistance and can't afford to pay for care on their own. and she is also disabled due to severe DJD in her knees.. What am I missing? MMB February 22 2011 1:47 PM Madeline. Their argument is this is not really insurance. My father was diagnosed with Parkinson's Disease at age 55. He is now 68 and is severely disabled and suffering from dementia. This has already started. Is there any concern for this? Stephen December 29 2010 8:44 AM In response to the person who asked at what point do your assets outweigh the benefit of long term care insurance. Rob February 18 2011 12:58 AM I have my policy through New York Life. Most states have a “partnership” with long-term care insurers. leaving you in a much worse situation that you were before? LTC insurance is peace of mind. It makes financial sense no matter how you look at it.. He's in excellent health. Mine is ok. How much should I expect to pay? Madeline February 02 2011 6:38 PM Some consumer websites no longer recommend Long-Term Care Insurance. We think very highly of Dave. but it is a difficult situation. clayton February 03 2011 12:29 AM I'm torn: DO I NEED IT? or DON'T I. Very very strong company that has never increased LTC rates. because nearly everyone will file a claim eventually. My answer to that is. I am also 53 years 57 . I plan to buy LTC insurance as soon as I am debt-free (probably by my mid-30's.. You want to leave a legacy for your family. but this is worrisome. I'm 67 and my husband just turned 69. get a GOOD annuity from a trusted insurance company with a Long Term Care rider. As of January 2011.. Get it now while you're in good health and it's still relatively affordable. My siblings and I help out when we can. Could we have Dave’s comments on this? Alex Lechler January 31 2011 11:44 AM I agree with the comments to consider buying LTC insurance before age 60. especially if you have a family history of chronic diseases. I wouldn't say it is a great alternative. You don't want to leave your assets to Joe Blow nursing home owner. but it serves two masters. IF you are still wary about the risk of not having to use the LTC insurance. you need it because there's a 78% chance that you're going to use it.. that will never be able to cover the cost of claims. or would you like to drop 300K to 400K on your spouse's long term care. and call it a massive fraud. likely saving you over $200. by the time you file a claim.. Melissa December 30 2010 5:25 PM I've read of a couple of instances of insurance company's increasing premiums for LTC insurance and forcing older people with fixed incomes to drop their polices because they could no longer afford them.. He did not have LTC insurance. Would you rather pay an insurance company 150 dollars a month.. Think of your children and grandchildren. The chances of him going into a nursing home before me are greater.unless you die suddenly at age 59 after having paid your premiums for 15 years or something.

If it is offered through your employer sign up first opportunity. MD July 20 2010 10:27 PM Get your LTC coverage as soon as you can afford it. but also have certain health conditions that would make it either impossible to get. Bankers Life and Casualty has the best to offer. if you don't have any assets except your home. The premiums were 169/month. Jim Anglin April 06 2010 11:47 AM The longer you wait to sign up for long term insurance the more expensive it will be and more of a chance you will not qualify because of health condition. Get the inflation rider and get the return of preminm to a beneficiary rider if you are to never use it. What should I do? jlh August 01 2010 6:18 AM How much money in the bank do you need if you and your husband don't have children or any debt in order for longterm health insurance to be a BAD idea? Heddy-Dale Matthias. I deal in the insurance industry mostly with the senior market and when i present they say it cost to much. If you wait till you need it. 58 . I bought LTC as soon as it became available through my employer. Oklahoma offers a partnership program that excludes the face value amount of the policy from assets that must be spent down to qualify for Medicaid. Plus. If you wait to age 60 and do have your health and don't qualify you'd wished you invested in it sooner.000. If he goes into the nursing home we will gradually lose all the money we have invested to pay the bills and I will be left with a minimal amount to live on. or astronomically expensive! Tandy April 14 2010 4:48 PM However. My husband and I just got accepted at 63 and my premium is very high because of my health. we are not only older. Chuck April 18 2010 10:20 PM LTC is a great way to protect your assets. but I do on this one issue. Rex Pjesky April 14 2010 11:05 AM I've found your money vs benefits. but I looked into this for my 65 year old dad. Buy an inflation adjusted policy and make sure it qualifies for your state's partnership program (if offered). This looks like a rip-off like whole life. Patty April 14 2010 3:02 PM I don't know how much rates/policies vary. the costs are alot less the younger you are. does it really make sense to purchase LTC as it is really expensive and certainly eats into an "old person's" budget. darwin April 17 2010 11:13 AM I hardly ever disagree with Dave Ramsey. and had a lifetime limit of 109. you won't be able to buy it."Can your family afford for you not tohave it. If we were buying it NOW. since the average nursing home stay is 2 months. My response i to give to that is the question to ask yourself . It did not pay the first three months of care." Get when your healthy and while it is cheap.Life insurance old. FGoins May 18 2010 1:56 PM I'm a long term care insurance agent and the comments talking about getting long term care insurance while you're healthy is so important. esp. when we were 50 and 52.

I bought mine at age 39. in home 24 hour care.Life insurance Linda Reid March 28 2010 11:45 PM LTC insurance is a great idea for everyone. The premiums are capped at 150%. Nilsa S. December 28 2009 3:38 PM I think 60 is way too late to buy a long term care insurance policy.000.. Erin March 28 2010 3:57 PM I'm 53 years old and recently purchased LTC insurance.e. I will be able to spend a lot less money on this policy while in retirement. and this is simply not true.while you are healthy. Benefits are adjusted for inflation and are lifetime. so my grandmother purchased a policy for four years' of coverage. Many LTC insurance policies also cover hospice. Consider family health history and all of the concerns that should properly be addressed before deciding that age 60 is "gospel. If you wait too long. but I was amazed at how much more the premiums would increase with each year that I waited! My goal in retirement is to have as few expenses as possible. A lot of LTC plans change the underwriting requirements and require a longer application process at age 60. The payment period ends at age 65. You don't just sign up for it. While the insurance is fairly expensive. Try to enroll at 59!! April Patterson December 08 2009 10:26 AM Ditto on when to buy.. and by locking in my premium price TODAY.approximately 10 months of benefit." MRP December 11 2009 4:01 PM I'm from the insurance industry. i. The thing with insurance is that you have to buy it at a time when you think you don't need it. I was forced by my employer to have a booster of rubella vaccine. If you are going to be in serious trouble it can hit you any time. Mark Barnack February 17 2010 1:19 PM OMG! Do you know how many people are declined for insurance at age 60? There is underwriting involved in purchasing Lont-Term Care insurance. 59 . it saves much heartache and money down the road. do the math.000. and you pay a $150/mo premium for 35 years you have paid in $63. Annette H December 26 2009 2:39 PM A lot can happen between 50 and 60 to effect insurability and premium. The money that I would have "saved" while delaying the purchase of this policy is nothing compared to how much more I would have paid in the long run by waiting a few more years. My great-grandmother died of a stroke at 53. About enough for 10 months of care if you are looking for "return. and you've saved only $3000 over the life of the policy. it is nearly certain that I will need decades of nursing home care later on as my condition worsens. Again . and respite services. Although I am still independent now. Make sure the decision you make is based on your own values and your own concerns. I was wondering if I should wait a few more years. Most people think that medicare covers LTC.if you don't make a claim until age 85. you might find yourself uninsurable!! Jan Sheets February 10 2010 11:39 AM Annette. If "premium" is the issue. Example . I am now uninsurable and thank God I bought the policy before I was crippled by my employer. if I need 50 years of long term care it will be paid for. Her current monthly expenses at a full care nursing facility (and not a new or "pretty" place) is $7K. Who is the sponsor of your LTC insurance? It sounds like a good on if it's adjusted for inflation and is lifetime." If you pay in $200/mo commencing at age 60 for 25 years you pay in about $60. which she exhausted last year following a stroke at age 83. I am a hospice nurse and have seen many families struggle with the burden of caring for a loved one. It doesn't take a genius to figure out what a hardship that places on a family. and this has caused autoimmune arthritis.

buy a house or have some other significant life event happen. Long-Term Disability Insurance If you die. In that case.Life insurance Susan December 01 2009 9:47 PM My only comment is that some people need to purchase LTC before age 60.004 a month. Don’t take this lightly. And you need to. you need long-term disability insurance that will provide about 70% of your income for an extended time period. doesn’t mean it’s not important. You should have eight to 10 times your yearly income set aside in a term life policy. all the while grieving you. About 49 Americans become disabled every minute and three in 10 in the workforce today will become disabled before they retire. My husband is a cancer survivor with serious chronic health problems at the age of 53. Every time you get a raise. Make sure to refresh yourself on these four insurances: Life Insurance If you die with no life insurance. If stuff like that gets away from you. it can turn bad quickly. usually until death or age 65. We plan to take advantage of simplified underwriting LTC coverage offered by his employer. at a 10% return. your family can invest the money and. That's the equivalent of every man. It’s obvious that a budget or a debt snowball need to be checked frequently to make sure that you’re sticking to them. But if you are permanently disabled. Four Must-Have Insurance Policies from daveramsey. if you pass on. 60 . your life insurance will take care of your family. and more than half a million in the prime of their lives die prematurely each year. your family will most likely be stuck in a dire situation and have to make drastic changes. you will be unable to produce an income and yet still need to be cared for. one-third of adults in the United States carry no life insurance. You can usually get it the cheapest through your workplace. That way. This is something that shifts more often than you think.com on 14 May 2010 Share Email Just because some aspect of money isn’t talked about much. With the average monthly benefit from Social Security disability being $1. replace your income. you need to make sure that you have enough insurance to cover it. Get some life insurance quotes from Zander Insurance. Find out more about disability coverage from Zander Insurance. 68 million Americans have no life insurance at all. and child in the greencolored states. have a child. woman. you can’t afford to not have this type of insurance.

Ramsey starts by stating that “cash value life insurance is one of the worst financial products available. who noted that every generalization is both true. 2010 Neil Jesani Leave a comment Go to comments Though I am passionate about life insurance. A nursing home can cost about $50. Whether or not life insurance is a good choice for you is reliant upon your envisioned “end. wrong. I would like to spend a few weeks going line by line through a recent article of his about life insurance. That's 49 every 60 seconds. If something happens to your home and you have a policy without guaranteed replacement costs. When buying homeowner’s insurance.000 Americans became disabled. to shed some light on a subject about which Dave Ramsey is very much in the dark. in his book “The Seven Habits of Highly Effective People.Life insurance In the past hour. almost 3. burglary or some other disaster. you will only be covered for the value of your home at the time you took out the policy.Ramsey’s claim is that. Long-Term Care Insurance This isn’t necessary until you hit age 60. cash value life insurance is a waste of money – and this blanket claim is.” Only then can you decide what road to take to get you there. Homeowner’s/Renter’s Insurance You should never own or rent property without having yourself covered in the case of a fire. If you and your spouse go into an assisted living facility with $300. I instantly find myself pondering his perspectives on life insurance. After that it becomes vital. could harm the financial futures of thousands of people. when Dave Ramsey is quoted in any article. you’ll have it used up so fast you won’t believe it.000 in life savings.” wrote that to be successful you must “begin with the end in mind. get one that has guaranteed replacement costs. Make sure to have your full emergency fund in place so you can take the lower premium and higher deductible on it. so make sure to have some. That’s bad news if your house has increased in value. However. Renter’s insurance is relatively cheap to get. to put it plainly. regardless. the continued dissemination of his viewpoints leaves me concerned for future generations – his misguided notions. 61 . I find myself recalling the wise words of my grandfather.” Part 1 June 21st. if heeded as legitimate advice. sharing the same inherent flaws with which all generalizations are saddled. and my career. and false. Another important aspect of a sound financial plan is to keep your Legacy Drawer up to date. While I respect and admire his advice on credit and frugality. If you are approaching 60. it takes a great deal to upset me. Stephen Covey.” In this instance. start looking at long-term care insurance.”. flood.000 a year per person. Don’t buy it before then (it’s not necessary enough at that point) or after (it can get too expensive). Find a long term care insurance agent in your area who Dave recommends. Learn what needs to be included in your Legacy Drawer. in addition to the insurance infomation abo The Truth About Dave Ramsey – My Response to Dave Ramsey’s Article “The Truth About Life Insurance.

IT Professional. I’ll talk about Ramsey’s next comment. The Truth About Dave Ramsey – My Response to Dave Ramsey’s Article “The Truth About Life Insurance. If every American followed his advice. I’d have to pass. learning September 24th. where he states. and you gave me a lot to chew on here. to every person who watches his show. Term life policies provide coverage for a predetermined period of time.Life insurance In a few days. over 70% of life insurance policies sold today are cash value policies. Life Insurance. 72% within three years. whether it be tomorrow or a thousand years from now. 2. I’ll show you why that idea almost never works. According to a study conducted by Pennsylvania State University.” Part 2 July 13th. I feel – and I’m sure I’m not alone – that if someone offered to take my money. where he claims it is “sad” that 70% of life insurance policies sold are cash value life insurance. I started to disassemble Dave Ramsey’s article. Next. Thanks. Physician Tags: Life Insurance Comments (5) Trackbacks (0) Leave a comment Trackback 1. I will tell you why. listens to his podcast or reads his newsletter. Home Maker. but may not last the whole rest of your life.” What’s truly sad is that the other 30% are term life policies. And next time. while the other 30% are term life insurance. 2010 Neil Jesani Leave a comment Go to comments Last time. Ramsey moves into the frequently-touted “buy term and invest the difference” strategy. “The Truth About Life Insurance. on the other hand. Categories: Business Owner. Here’s an important fact Ramsey omitted from his article. And yes. Only 1% end in a death claim. But Ramsey is suggesting just that. probably due to the fact that he was unaware – for every 100 life insurance policy payouts. 99 of them went to policy holders with whole life insurance. then gave me a 1% chance of ever seeing it again. “Sadly. So whole life is better for some people or all people? I guess that depends on where you are financial? I’m just learning about this whole thing. 2010 at 14:17 | #1 Reply | Quote This is educational. 62 . do provide coverage until the day you die. policy holders who owned term life but didn’t die during that term received absolutely nothing. 45% term life policies are terminated or converted within the first year.” I want to talk this week about his next inflammatory comment. 99% of our country would die without leaving any legacy – beyond medical and funeral bills – for their children. Cash value policies. So let us look at Ramsey’s argument through that lens.

while on its face it seems like good advice . but I won’t – you will just have to do the research… I will say if you want to build wealth as opposed to pay debt the Whole life insurance should be part of your strategy. 2010 at 23:03 | #2 Reply | Quote Whole life and term life don’t even have the same function financially. 2010 at 10:25 | #3 Reply | Quote Ramsey made two false statements in his article. how about that. So. Second.. he stated that whole life policies paid 2. wealth building and is not afraid to have hard and sophisticated conversations with you about your money. Whole life has a component of protection and a component of wealth building. Most of these stock jocks and financial self help gurus are terrified of someone who truly understands the features and benefits of Whole Life.. but real WHOLE Life contracts (like the ones from companies such as Mass Mutual and The Guardian)that guarantee interest rates on your money have tremendous borrowing provisions (can you say tax advantaged) and that represent INTERNAL AND EXTERNAL Rates of return that will often triple what a stock portfolio will pay you with virtually no downside RISK. Dollars Not Debt January 21st.. First. But how cheap is it when 99 times out of 100 you may as well have thrown your money in the toilet... expensive… ah… but that is where the rub is. 3. he stated the tired old charge that upon death. the insurance company pays the face amount and keeps the cash value – I can show you my NWML policy that effectively pay the original face amount plus the cash value or more (I applied dividends purchase ‘paid up’ insurance) 4... Art November 29th. Term life is a protection mechanism and that is it. HUH? Yeah thats right. I would bet the farm that it is WHOLE life insurance. they spend lots of time trashing them and selling the cheap stuff that almost never pays out! I could go on.6% – I have NWML policies that have returned 5% and that return is tax sheltered (it will be received free of tax by my beneficary).Life insurance Jonathan September 30th. Now not the goofy pseudo whole life products from Gerber Life or any of those low rent companies…. YEP. People like Ramsey and Ormond make their money on POOR people those with avg income that ARE NOT financially sophisticated... right… cheap vs. They partner with a term life insurance broker and help sell Term life policies and MAKE A TON OF MONEY DOING IT!!!! SCAM SCAM SCAM..it is easy to demonize that which people don’t understand and flip them into purchasing something they will never get use of because its cheap. 2011 at 20:10 | #4 Reply | Quote 63 . throw your money in the toilet. Ask Warren Buffet or Bill Gates or any other insanely wealthy person what type of life insurance they own. if you want to feel good about your impending death and your profiting off a policy that most likely will not be in force when you die then Find a REAL financial professional with a deep understanding of lost opportunity cost.

Dollars Not Debt 5. 64 . Whole life and universal have a lot of costs and commissions built into them. If you retire in a down (2008) economy and your variable assets are worth half as much as they were before. it would be ideal to leave the money in the market and let the assets bounce back in a year or two. That’s when you tap into your whole life policy to protect your assets Whole and Universal Life vs Term life. preaches about not buying new cars and flys around in a private jet. submitted by Dan in Charleston. submitted by Jared in SLC. But they also have tax advantages. Are they a ripoff? Posted in Life Insurance Questions over 2 years ago. however. 2010 . Overall. Dave is right that it's best for most people to buy term and invest the difference. 2011 at 16:45 | #5 Reply | Quote Funny.11:32 PM Reply As Dave would you sound (stink ) like a cash value agent! submitted by Mann in Singh @ November 11. Is that misleading at all? He says the best way to go is buy Term Life insurance and invest the difference into Mutual funds that average 12 % returns.10:44 AM Permanent life insurance policies are only good if you can afford them. SC @ September 22. Buying permanent insurance can also force saving discipline on a policyholder. Ryan Anderson February 18th. I will have paid off a total of $100K in the four years. The less you pay for term life insurance.Life insurance I have been following Dave Ramsey’s plan for about 2 years and I will be 100% debt free in August of 2012. I talk about my path to debt freedom in my blog. It's important to find a financially reputable insurance company with very good rates. most people can't afford to keep them long enough to reap the benefits. 2008 . House and everything! The plan works–but only if you are focused and have self-control. since their insurance "bill" is due each month. Suzy preaches against whole life and owns a policy of her own. 59 replies I hear Dave Ramsey on the radio talk about how Whole Life and Universal Life are a ripoff. They are actually fairly good investments. Most people can't and that's why they appear to the public as a ripout. something Dave Ramsey will ironically need to do for tax purposes. Another advantage for permanent insurance is for estate planning. UT It's depends on your philosophy about investments. the more there is left to invest the difference.

However. Most people will have a dozen unexpected/unrealized/unknown events happen in their lives over the next 30 years that will alter their financial landscape.11:17 AM Reply Puuhleeaze. IN @ September 30. he misses the mark on WL. They plug that you build cash value. and he'll wish he'd bought Whole Life earlier. If you can afford that poo. I am a strong proponent of WL for everyone (of course. 2008 . So you end up paying the same Amount every year. Sure. and Whole Life (if bought through the right company). The main one being it flexible. fair enough.11:42 AM Reply 65 . Dave Ramsey has probably saved a ton of marriages through his debt management system. You get YOUR SAVINGS plus the insurance MINUS your savings. if they can afford it). *Buying a new house *Taking out a second mortgage *Getting a big promotion *Getting fired *Starting your own business *New dependants (children and/or parents) *Disability *Natural disaster *Having a child with special needs Those are but a few things that can completely change where your financial train is rolling. But you do not get the insurance PLUS the cash value when you die. you will be paying say 2500 for 500 of insurance. Hope that helps.Life insurance submitted by Byron Udell in Wheeling. In the last year. Permanent life insurance makes less sense if you can afford it. Whole had many benefits.01:07 PM Whole Life works better the younger you buy it. he is going to need some major estate planning down the road. Its only good feature is the the premium itself does not go up and it is renewable. 2008 . And as Dan aptly mentions. submitted by Orack Bobama @ August 04. submitted by Andrew in Greenwood. WEEEE. IL @ September 23. 2010 . for LESS insurance. Whole Life offers the solution to the questions: *What if I need insurance longer? *What if I need to replace more than just my income at death? *What if I start to worry about how much I will leave my kids? You get what you pay for. you dont need it. is a tremendous financial tool.

So many families are devistated when they realize the savings portion isn't something they can lay claim too although they've been paying for it for whatever length of time. Ask Questions and see the facts! submitted by Tim in Ohio @ November 11. With life insurance. Even if you did. submitted by Andrew in Greenwood. Then like most people. 2008 . Make sure your insurance agent also has a securities license so that he or she does not pressure you into a life insurance policy as an investment.you will not invest the difference.12:46 PM Buy Term and invest the difference. Term is pretty straight forward. The thinking is that you don't really need Life insurance at that point. 2011 .. the less money the insurance company has to pay out of their pocket to the remaining person at time of death. So as it stands the longer you pay into that policy and accumulate cash value. Most term life insurance policies NEVER pay a claim! As long as you keep a permanent life insurance policy in force.. IN @ September 30.05:41 PM BTW. 2010 . 2009 . submitted by Fadeelah in Georgia @ October 11. Using life insurance to leverage the value of an estate is pennies on the dollar as long as you keep it in force. there are too many hidden complications with universal or whole life. submitted by John Y. The insurance industry is so deceptive. it will. Here are the facts: You do not know what the future holds. pretty much the only benefit to whole or universal life is that it lasts up to typically age 100.04:08 PM Reply Hello my name is Fadeelah. For example. 20 or 30 years to have the policy.12:05 PM Reply Life insurance can be a very difficult instrument to understand. in Ca @ March 07. you didn't read the fine print it's actually not yours. Tax Deferred Interest on life insurance policies are a great way to save and access the money "Tax Free" via loans later. If he or she has their securities license then they have much more options with helping you. and will continue to do so. Estate planning? I would question that! The reason term can be so much more useful is for the fact that it is much cheaper and you usually have 10. So if you have a policy for 20 years and you are on your 20th year then your home and other debts should be paid off with a nice retirement account. ON @ April 22. submitted by Clayton in Toronto.10:28 PM 66 . Can you imagine if you had been putting money into the bank every month for 50 years and when you needed it most were told sorry.You probably put your money in Mutual Funds which are less than what you paid for them? Then when you retire. I watched Suzie Orman on the Oprah show and she stay away from whole life insurance and I have whole life insurance for me and my children and grandchildren.Life insurance Whole Life Insurance is actually worse the earlier you purchase it.. your house will be paid off and your kids will all be grown and doing well so you will not need life insurance? Good luck with that in the real world. 2008 . Sometimes even harder than understanding securities like stocks and bonds. someone who has a policy with a death benifit of 100k and has accumulated 75k in savings at time of death has the the 100k paid out to the benificary (less any borrowed money plus interest) but the 75k accumulated goes to the insurance company. However. my question is why stay away i don't understand. I would to see these mutual funds that are average 12%. The savings portion goes to the insurance company to pay out the death benifit when the insured person passes away.

. The first step in buying a life insurance policy is checking the company behind the policy. This is the fund primarily used to pay death claims. you need flexibility with your financial plan. Term and Invest the Difference strategies usually end up being Term and Spend the Difference strategies.. BTW. a parent who had to move in.. You need to think long term. There are four major rating companies that rate all insurance companies in the country: Standard and Poor's Moody's Fitch A. :bet your life. You'll be wealthier down the road and your family better protected if you do! submitted by CITISHARK in US @ April 09.. Best These reports are not free. since then Citi can use you and your money so they can try to make up for over $55 billion in write offs. etc. and other advice that not for everyone. 2010 . 50 or 70 years from today. and Whole Life offers that. but any company that you are dealing with should be proud to tell you their ratings. which most people cannot do. Term insurance works out if nothing in your life will change over the course of those years in which you own it. executive life or any other name they use for them) and compare with plain vanilla LEVEL TERM insurance as recommended by Ramsey. in cases of mass tragedy when many claims have to be paid at once. I'll tell you: take a piece of paper and compare any "recommended" cash value policy (whole life.Life insurance totally nuts !!! what an advise. submitted by Andrew in Greenwood. 2008 . You will never have a time in your life when you will not want to impact someone or something positively if/when you die.. Talk to the people who are getting ready to retire. Primerica ("King of Term") and increasingly number of people in and outside the industry: TERM Insurance WINS every single time!!! Factor this: why do you think the insurance industry lost +4.M..01:32 PM Reply Suzie Orman thinks the same way and she worked for Primerica. that is if they are a good company. etc. So it would make sense that she wants you to buy term and invest the difference. Hope that helped. buying a new house. The company that I have my policy through is New York Life.01:07 PM Celebrity financial advisors have some advice that is great. what this means is how much money they have in their "rainy day" fund.. even if someone talks you into a term strategy.. the WL policies on your grandchildren are excellent investments. So it is important that they have a very well padded surplus. They also have a surplus of over $14 billion. with a sound financial sheet and a surplus. etc. are they investing it wisely so that they will be there for you 20. They have the highest ratings from all four of the rating companies.those whose lives have changed either by divorce. IN @ October 13. However.. 30. you have to do extremely well to warrant beating the tax free death benefit afforded by WL.000 "professional agents" (selling cash value!!!) just last year 2009? Find out about Buy term and invest the difference... which is essentially Citibank. The surplus is Very important. refinancing of a house. They will tell you they would have loved to have bough WL thirty years ago. Even if you can stick to the plan. an unexpected pregnancy. and which is why most buy term.. This surplus also represents what the company is doing with your money. Standard and Poor's AAA 67 . universal.

I make money.. Hartford. 2009 . It seems like more then I can afford right now. This is quite opposite from New York Life. This is quiet a conflict of interest in my opinion because a stock companies interests are not in line policy holders interests. submitted by Jason in Columbus. What is the best thing to do to get them covered? submitted by melissa in missouri @ October 21. They paid EVERY claim during the panic of 1856. These companies are MetLife. submitted by Wayne in America @ October 06. since they are a Mutual company their one and only concern is making sure that they are there. 2008 . Best A++ Moody's Aaa Fitch AAA They are also a Mutual Company which means that they are owned by me. I was told by my agent to put the child rider on my husbands. 2008 . pushed a button in the White House that was linked to an American Flag that unraveled at the grand opening of the New York Life Insurance Building in New York City (1928) Just think of that.09:12 PM Reply What a bunch of crap. have insured americas greatest legends: Babe Ruth J. strong and solvent on the day where my family will need them the most. He ended up being denied and mine was completed. Presidents In-fact Calvin Coolidge. OH @ October 15. They do not take risks without making sure that it is in the best interests of the policy holders. but when you find a company that is build on such integrity and values it is hard to not spread the word.03:20 PM I applied for life insurance for myself and my husband. and Prudential to name a few.Life insurance A.M.S. AIG. what this means is that the owners of the company are share holders. So. a policy holder.07:27 PM You talk "just like" New York Life agent submitted by Joel in New York @ July 18. 2010 . The company is over 163 years old. What a bunch of hog wash. Penny Suzan B. Anthony Colonial Custard and 11 U. They have also paid a dividend to whole life policy holders for 162 years straight. submitted by Wayne in America @ October 06. New York Life was crossing civil war lines to deliver death claims.. In today's world it is hard to trust anyone. 2009 .07:11 PM No wonder Primerica is kicking the whole life industry's ass. And this ine is an old trick the insurance companies use to induce you to buy cash value. not policy holders. Now I can't add a child rider to my existing policy so our children are not covered.C. Check them out if you are looking for long term promises that you would like kept. the crash of '29 and throughout the Great Depression. he is pushing the universal life more.11:09 AM Reply Melisa: that is not anyone looking up for you or your family: he/she is a real crook getting inside your home..when New York Life makes money. The opposite of a Mutual Company is a Stock Company. My agent now wants me to do either whole life or universal life for them. Thanks for commenting about it! You and your family needs LEVEL TERM insurance 68 . 163 years old.

And the policy will have "account value" at age 65 that is very nice for retirement. If I have a client with children in the house I always offer a Child Term Rider that not only provides protection in case the child dies. United States @ November 21. Insurance however is for the unexpected. If you just bought your policy. That is waste of money. Plus they wont have to qualify for coverage when they are older and possible unhealthy. Years ago I had sold term insurance for Primerica and over my ten years with the company had obtained the position of Regional Vise President. Most of the time I blend term and whole life or universal life together. National Agents Alliance htt://naablast. submitted by John Y. No one is dependent on their income. 2010 .04:37 AM Reply You may be right in most cases. We did not have life insurance in place. submitted by ally in san diego @ October 30. folks if you take care of the client first they will take care of you with referrals and future business!!! submitted by Don in Jacksonville. I am thankful for the experience but I will never recommend buy term and invest the difference to anyone ever again for far too many reasons to list here.us 69 . submitted by Samuel Chambers in Florida. 2009 . 2008 . in Ca @ March 07.000 fast to my brother and wife who had a child rider on Her policy. 2010 .02:35 PM You are Studid! My nephew died in his sleep at age 21 and West Coast Life paid the claim $10. I always always always sit down with my clients provide an insurance review of everything they have and ask them what their current and long term plans are. last 6 month and the customer can increase his or her death benefits during that time but first you have to complette an insurability questions. And lets not forget the ongoing bills. Then together we prepare a plan that fits their objectives!!! Not my commission objectives.01:11 PM Melisa.05:49 PM It is not that someone is dependant on the childs income / it is a head start. The answer that children do not need life insurance is pure ignorance. Maybe you have more cash on hand then we did. The reason this is important is that if the child becomes uninsurable before becoming an adult they are guaranteed up to 5 times the face amount of the term with permanent life insurance without evidence of insurability. I have been insurance broker for over 13 years. I see alot of answers here pushing their agenda. FL @ May 26. submitted by JAY in TX @ January 13. He strongly recommend Univ. He states that Univ. Life Insur. We lost our daughter in December 2007.05:15 PM What most question and answers here are missing is that each individuals situation is different. The medical exams that were collected on your. I was unable to work for the next month and we still had to provide some semblance of the holiday for our two remaining children. submitted by Rafael Ceara in San Juan Puerto Rico @ August 15. The title of the book is call Tax-Free Retirement. 2011 .Life insurance submitted by CITISHARK in US @ April 09. the agent can reissue the policy with the new child rider. The lessons that I learned there has taught me that at the time I was with them I could sell a life insurance policy but I did not fully understand the benefits of Whole Life until years later. just four days before Christmas and that was unexpected. try to do that and open a Mutual Funds for your childrens. Insurance is expense. but it pay off in the longer run. Huge term death benefits while children or mortgage is around say a 30 year term and a smaller permanent life insurance for the remainder of their life. I had just closed my mortgage company six months earlier and was working at a local hospital with no cash reserves. If they are below 18 they should not need a physical exam.02:05 PM I just finished reading a book by Patrick Kelly on universal life insurance. 2011 . 2010 . but also guarantees the child up to 5 times the face amount of the rider when the child becomes a legal adult.02:31 PM Children don't need life insurance.

his aunt Susie.07:17 PM Orman was born on the South Side of Chicago.. It blew the lid off of the whole life industry. rather could you get up and go to work the next day after your child died??? if you could. It was started by flim flam people is still operated the same way and even worse now. I will sell them term. They are A++ by all four rating companies. 2008 . submitted by Aron in Vegas @ December 17. In 1980. WL is a great policy to purchase early in life for any one.. especially with the deliberate overcharge called dividends. I am glad you are not my neighbor."[6][8] She was an undergraduate at the University of Illinois at Urbana-Champaign. Maybe 1-2% of the total term policies in force will an insurance company pay a claim on.000 back plus interest and was able to pay back her former customer. The rest of them either go to the full term or they lapse or cancel because the client does not see value in the policy. after she was swindled by her stockbroker. This product is the best for estate planning submitted by pm in pittsburgh @ December 28. but yes it is expensive. Also your agent could re-write your current policy and use the same underwritting info if there has not been a lot of time between issue and now. 2008 . Finally. but four months later was broke again.. I have to strongly disagree. The average return on investment is 6-7% with no taxes on capital gaines if policy holder dies with the policy inforce. in social work. It is all based on what your clients goals are. The true WL policy premium stays level for life. You are ensuring insurability. 2009 . submitted by Wayne in America @ October 06. [6][7] Orman came from a working class background and has said that she did not "grow up with money. Whole Life. They pay a dividend which goes to your cash vale. submitted by BILL in MICHIGAN @ March 14.BE SURE TO ASK QUESTIONS!! I am an agent and I am proud of the products we provide. If clients want to continue to "rent" their life insurance. will Wayne..Life insurance submitted by Titus in NAA @ October 30. Parents are making sure that their child can always have life insurance in place not for them.10:44 PM Reply New York Life has been ripping people off for over a 100 years. She discovered through her training that her stockbroker had committed an illegal act and she thus sued Merrill Lynch.. Illinois. is the #1 biggest scam in North America. good luck paying those premiums. but their grandkids and future spouse. Suze received the entire $50. she moved with friends to Berkeley. Orman invested the money at Merrill Lynch.03:10 AM Buy whole life from New York Life. Check out the book "What's Wrong With Your Life Insurance" by Norman Dacey. And to those who say WL is terrible for kids. and uncle Dave get off their soapbox and give their audience all the information they need and let them make the decisions on whats best for them. and having started learning more about finances and investing. I will sell WL. If they want to "own" their life insurance.11:15 AM Reply Its not that they need insurance. If you want to know where insurance companies make their money it is on term insurance. You sound like infomercials.09:53 AM As an Insurance agent I am a big believer in term and a huge believer in whole life.. A good agent will give you all the direction you need. Gdo Bless and good luck on your purchase. In 1973. in 1951 to Russian-Jewish immigrants Ann and Morry Orman.. from which she holds a B. Orman returned to Merrill Lynch and entered their training program to become an account executive.. please dont Purchase Universal Life unless you can over fund it. If the client wants to renew their term policy after 20 or 30 years their cost of insurance is going to go up every year they choose to keep it. I was scammed by them until I found out the Truth. And if they are above 50 yrs old. California and lived for three months in a van on Hearst Avenue. She soon became a waitress at the Buttercup Bakery on College Avenue. After she completed the training. Quit being so biased.But that tween age you should have as much Term as you need to take care of your family. 2009 . You will never be healthier and never be younger. she was hired by the firm and remained there until 1983 when she left to take a position as a vice president of 70 .[9][10] Knowing that she couldn't make the money back as a waitress. 2009 . They both have their place..A. The product is called custom whole life. best whole life insurance policy in the business. a longtime customer gave Orman a loan of $50.000 to help her fulfill her dream of opening her own restaurant.

000. 7. and not primarily viewed as an investment. If I had stayed with my original Term Policy. In the end I recovered about $4. 5. I work for AccuQuote and this is my personal opinion. Babe Ruth and all the others mentioned were wealthy. have the cash value taken out and made it basically a 30 year term policy for a few bucks more each month. There are other products out there for estate planning other than Whole Life Products. It is best not to look at it primarily as an investment plan.. If your so smart. Also I was told if an investment returns 10% for the next 30 years and has one negative year (which likely will have more than one looking at todays market) at the end you will lose more money than an investment that guarantees a fixed rate. 2009 . Masters..Life insurance investments at Prudential Bache Securities. The dividends paid on your whole life policy are for overpayment of premiums.01:10 PM I have a client who is 69 and her husband is 70. California. She is now uninsureable for term and can only get whole life or UL. That is my only argument with whole life? submitted by sean in indianapolis @ January 22. and her agent did sell her a 10year term policy. Term life policies purely offer death benefits during the period of the term.000 coverage .000. Who have no financial gain in you purchasing term and investing the difference.200 in my whole life policy after 20yrs well it went into an IRA. I would have spent less than $1. 2009 . There is no cash value on a term life policy. but this should be considered an added advantage to a life policy. the Suze Orman Financial Group. Whole life for kids is the worst investment.. with my Education IRA.616/yr.12:11 PM Reply Can someone tell me where are all these people who say "invest the difference" are investing? I am looking into buying whole life vs term insurance but what other investment GUARANTEES 4-7% returnes like some whole life companies do.000 so I LOST about $5. I don't see anything about Primerica/Citibank? 2. the $3. I spent nearly $10. they are JUST NOW looking at life insurance.000 coverage) to a Universal Life Insurance Policy for $100.. Some term life policies will offer you refund on the sum of premiums paid. 3. He converted my 10-year term life insurance policy (premium was $279/yr for $100. Meaning your insurance company charged you too much in the first place..NEW PREMIUM $2. after the term is over. 1.08:47 PM The whole purpose of life insurance is to offer financial protection in the event of the policy holder’s death. Dave Ramsey is right. If you work with a financial advisor. Many prefer an investment advantage to their life insurance plan. I was able to cover my college expenses. 2009 . but please don't compare the effectiveness of using a hammer to tighten leaky pipes or grabbing a nice big pipe wrench to pound nails. In 1987.000 in premiums before I realized I had been duped. wrong tool. I know my parents had one for me.07:07 PM Reply I am 65 and my husband is 72 yr old. when she stepped down as her writing career took off with the publication of her second book. 6. Luckily my grandparents set up an UGMA/Education IRA for me at about the same time. submitted by CFP in Seattle @ January 14. in Emeryville. Go to any major fund company's website and you will find fund lifetime performance(10yrs+) on an annualized basis to be higher than any whole life policy cash values(which recommended to be held at lest 15-20 years) 4. TX @ January 17. not working class people. Our trusted friend and State Farm Insurance agent convinced me to buy Universal Life Insurance a few years ago..000 and I could have invested the other $9. that expires 2-28-09. What a dope I was to fall for his sales pitch that Universal Life was really an investment I would get back. Orman resigned and opened her own financial planning firm. Insurance is a tool. She should have bought a UL policy. 2009 . Its like getting a refund for overpayment into your escrow account on a mortgage. Universal Life is a RIPOFF. She acted as director of the firm until 1997. not an insurance agent you will get the same response you hear from Dave and Suzie. you must also be expert enough to do your own dental work? submitted by Mike in Seattle @ February 18. It’s the age 71 . submitted by AW in Austin.

I feel my job is to provide the client with as much information as possible. submitted by Andrew in Greenwood. the WL and Universal policies would fall short unless you had at least 15-20 years of premium paid. sell Whole Life to them later when they finally realize they need it). I advocate whole life.10:08 AM Reply Typical whole life agent. Finally. 72 . and then let them decide what route to take. but you can have more than one type of policy. There is no doubt whole life is expensive and so to is universal life. Anyway. This kind of policy is subject to market risks. Georgia @ July 30.03:24 AM Reply I don't put horse shoes on my cat. However. However. I would like to echo some of the points made earlier.09:25 PM Reply Unbelievable ignorance. I am no expert. 2009 . Both strategies have merit. there will be a tremendous amount of cash value in either type. to give them my opinion. Now I know why people cross the street to avoid insurance agents. submitted by Denise in United States @ January 30. Denise Disclaimer: I work for AccuQuote and this is my personal opinion. assuming the best possible scenario with disability insurance. IN @ January 30. I don't make my horse "go" in a litterbox. Totally unprofessional and uninformed. A whole or universal policy has a disability clause that your premiums continue to be paid in-full until age 65. A person is 12 X's more likely be disabled than an untimely death submitted by Chuck in Atlanta. I can convert the term to WL at anytime as my overall wealth grows. This is a lot of money! But down the road. Period. but if someone is dead set on the dave ramsey approach. I think every head of household should have 10Xs annual income. something you will lose with only having 60% of income once you are disabled. I have four policies.Life insurance old comparison of apples with oranges. if you need 10x's annual income for adequate coverage for a death event. 2009 . 2 term and 2 whole life. I'll help them out (and in 95% of the cases. if you live to 70.000/year for WL and $10.000/year for universal for million dollar policies. for professionals. the real key is selecting the plan THAT BEST FITS YOUR CLIENT. This will provide ongoing wealth accruement. 2009 . Unbelievable ignorance. submitted by Wayne in America @ October 06. Universal life is usually chosen by people who are market savvy and want to use their life insurance as a combination of life insurance and investment. 2009 . Life Insurance is about more than death benefit. limits on disability insurance are around 25k/month. A whole life policy accrues cash value over the years. Other benefits are both estate planning mentioned above/tax benefits as well as protection from creditors. and you earn 180k/year.07:20 PM First. The annual premium for a 35 yo male is about $16. It will definitely not give you the same kind of investment returns as mutual funds or shares but neither can investments in mutual funds or shares give you the kind of death benefits a life insurance plan would? How many years of investment would that take? Universal life is similar to a whole life policy except that the policy holder has more control over the investment component.

managers leave etc.. Wayne in America. but that is unpaid leave. Think about a mutual fund (or any stock market instrument) and realize that if there is a correction it may take years to get back to "0" and your funds were never available. submitted by Josh in Louisville @ November 25. 2010 . submitted by Kim Uccellini in USA @ February 25.Life insurance submitted by Wayne in America @ October 06.. 2010 . I may be able to take FMLA for 12 weeks. Life insurance is a contract and I like contracts (it means the company promises something in return)! Mutual funds promise absolutley nothing at all! Finally if you don't like Whole Life.10:05 AM Some interesting information. then keep drinking the kool aid junior. everyone submitted by william in america @ March 27. 2009 .. take what Dave says as a whole. I am not as disciplined in investing because I know that I can always adjust my contribution in order to buy that Playstation 3 for Christmas. If you don't. 73 . could you please value others' time and not say anything? Much appreciated. There would be the loss of MY income. I was hoping for a good resource of information in order to make a wise buying decision. the buyer should beware. in the even the unthinkable should happen. It is not perfect and yes insurance companies make money (all businesses must make a profit otherwise there is no business!). People also overlook that with Whole Life your money is not tied up. I have been reading through the list of comments and every time that i come to one of yours. as far as buying term and investing the rest. 2009 . and think the stock market and mutual funds are the way to go. Also.06:17 PM Reply Wayne . I pay my bills each month on time. it isn't a catastrophe that it would have been yers earlier when you had many more things to cover with your income.000.07:24 PM Wayne. I would be a basket case and unable to work for I don't know how long. the average funeral costs $7. Your house will be paid off (b/c he recommends a 15 yr mortgage) and you will have an emergency fund of 3-6 months of expenses if anything should happen.09:33 PM Reply I don't understand why people say that kids don't need life insurance? Of course they don't have an income. Have some discipline and invest the difference. You'll probably being asking me for a handout when your 65+. Alos for those of you who think whole life pays you everything that you have paid in premiums. Also Mutual Funds only became popular in the 80's (mainly due to the 401k). and they do not have a long track record as an industry of good returns (funds open and close all the time. However. i get nothing out of it. 2009 . not picked apart.. If you die. 2009 . is there anything meaningful and positive you can offer as an alternative or an insight? submitted by Don in Green Bay @ October 19. The money you have saved investing the difference btwn term and whole has earned you a nice nest egg and so if you die.they SHOULD be living on thir own and making a living and yo uson't need to support them. not all the cash you paid into it. the insurance company oinly pays the policy value. That's a substantial amount of lost income. However. If you have comments that will help people type away. I think the desired form of insurance though is Whole Life.08:38 AM Reply I think everyone needs to remember to take Dave's advice as a WHOLE.. After 20 years. I noticed Wayne in America is full of critical remarks but offers no positive information. his thinking is you have term life insurance for about 20 years b/c you want to cover all expenses and take coare of your family if you should die during their childhood years.04:00 AM Reply First off term has a place in people's life especially when you are just starting off with a young family when coverage is critical. Also. by the way I am talking 30+ years).who peed in your cornflakes today? submitted by Tim in oakhurst @ October 23. think again. Please make a decent point or stop typing. Also. True. etc.

whether it be whole life..... Waste YOUR money. many of us just won't invest without it being a forced bill. This topic is quite complicated by the tax code also.. Be confused by insurance companies C..my gf sells life insurance . the reality is that so many people are paycheck to paycheck. God forbid that my son gets prostate cancer at age 50 and his term life expires (if that's all he has). life ins is just like car ins.. Whole life or UL can offer advantages to the wealthy that no other product can bring. PERIOD. Keep this SIMPLE . Give the salesperson a HUGE commission. I dump my 6% into my 401k. DO NOT BE FOOLED. And in my case. Many people make much less. get TERM. life insurance at that point is impossible to afford.. I see term cover a person until they get old and then dissappear. greedy industry is they want you to put ins on your infant and then hopefully they will keep it there for 60. 2010 . The biggest rip off is putting life ins on an infant.Life insurance I have UL policies on each of my kids and am seriously considering converting to WL for them. she believes in whole life and universal life. tell me wha to think peoples submitted by island boy in hawaii @ May 25. UT @ March 23. I make a measly $40K per year. universal life.. and to tell you the truth .. And I don't do much of anything else.04:47 AM Reply Life ins industry is THE biggest ($) industry on Earth. Plus some diseases run in my family. Simply put. I will protect my credit like my life depended on it. submitted by Trish in Sandy. I'm buying WL now. while my kids are still preteen. 70. much more. I have seen both backfire in my 25 yrs in the business.etc... Ins cos prey on those who lapse policies. it was through her experience with the death of her brother that makes her become the best insurance agent to help all families be secure for their children and family. what ever the case insurance. 2010 . But although I know my life also depends on it.12:16 AM Both are useful products and they cannot be compared without a chrystal ball. and many people make much. Life ins is to COVER THE LOSS OF INCOME.... The coverage offered peace of mind but no real value and they wish they had permanent coverage. 80+ 74 . mortgage etc. I'll make the sacrifice however to make sure my kids get a WL policy while they are young and healthy and rates are realistic. UT @ March 24. submitted by Trish in Sandy. Most often. One has to be committed and able to pay. It's forced savings. 2010 . As we're going through with my father. (my case wanted $4k+) B. but that's about all I can afford to do. at upwards of 1/10 the cost as an example below shows... You and or a spouse need it when you have those responsibilities (kids.03:30 PM Reply i plan on becoming an insurance agent. termlife.).. Children do not have incomes... is used at a tool......11:45 PM Reply I also wanted to add that while I believe that Dave Ramsey and Susie Orman are bright and have the right idea. The problem with this insidious. 2010 .You do NOT need life ins for your WHOLE LIFE (hence the name). I like many people are not disciplined enough to live in the slums until I build that nestegg that I'm too old or sick to enjoy when I'm suffering from osteoporosis or colon cancer. I congratulate people who haven't had unforseen medical bills pop up suddenly that take everything they have.. this is for the better interest of the client and their family. Buy it only FOR THE TERM YOU ACTUALLY NEED IT!.. Whole life was the best thing my father ever bought-and from a mutual company.its just a matter of informing the client and building a relationship with the client to fully understand the situation and from there we can help them by giving them the best option in which they can afford and be comfortable . I congratulate the college graduates and the people who haven't had a spouse walk out on them with a newborn and a 3 year old and nothing in the bank. submitted by John in Maryland @ May 13.Whole Life is great if you want to A. The reality of it is. Not everyone can afford to dump everything they have into Mutual Funds or pay off those high interest cards in a matter of months...

many people who buy whole life often can't afford an adequate face value. Did you know that IF you borrow. especially with rates at historic lows.and without the high commissions of whole-life policies.64 Investing: invest the difference. term life is the best deal for life insurance. $191 per month at 10% for 35 years = $683.225.4% for 35 years = $414. leaving themselves underinsured.The returns quoted by the agent are simply GUESSES .817.6% for 35 years = $146. . when you have all of the money you saved by not giving it to the WL ins co. WHY would you borrow YOUR OWN MONEY-AND pay to do it???.. .Keep your investing and insurance strictly separate. Insane! A traditional funeral is approx $6-10k.Life insurance YEARS.19 Universal life: $213 per month at 4. It is far cheaper and the investing power you have outside of it will make you “self insured” before your death – you won’t have to rely on the insurance policy to fund your estate. Match the term of the policy to your needs. Don't. 7. . because the life insurance industry has a vested interest in pushing high-commission (and high-profit) whole-life policies. 75 .6%.4%.306. Policies with an investment component cost many times more than term policies.S. And some companies keep these guesses of future returns on the high side to attract more buyers. the whole life is an investment.Agents sell the vast majority of life policies written in the U.2% for 35 years = $204. .108. Check out this simple comparison found on the Web: For a 30 year old male in good health. 7. THAT AMOUNT gets deducted from the payout when you die-right off the top.222. Choose Term Life Unless you have complex estate planning issues. your loved ones will just take the 1500 to 10k and bury/creamate you! -You're told you can "borrow" on your policy for low interest. 20 year term life for $500.Buy enough term coverage to fill your needs.000 of life insurance coverage is $22 per month. You buy ins until you don't need it. You want the policy to last as long as it takes for your dependents to leave the nest . One of the quick arguments against this back of the envelope calculation is that most people do not have enough will power to invest the difference that entire time. Life insurance is no place to skimp.or for your retirement income to kick in.09 Investing: invest the difference. That’s a difference of $191 per month! But wait. As a result.88 Variable life: $213 per month at 7. According to Fortune magazine.2%. You can solve this problem by creating an automatic withdrawal each month into a money market account. then in your later years. A whole life (universal life) insurance policy for $500. $191 per month at 12% for 35 years = $1. ============================ and another "Top 10 Things To Know" . for universal life 4. . not bought. you can invest the difference in a high growth mutual fund and be a millionaire at age 65. Let’s do some quick calculations: Whole life: $213 per month at 2. creamation is 1500-2000.Whole life is expensive. There are better places to invest .not reality.000 of coverage is $213. .097. Have the insurance paid from the money market account and have a monthly sweeping take the rest to invest in your choices of mutual funds or in a Roth IRA. and for variable life (invests in mutual funds).Insurance is sold.Whole-life policies are built on assumptions.46 Save the Difference If you take out a term life insurance policy. the average whole life rate of return is 2.

.. but I did run this myself to verify. Fund a life policy wisely for 10 years and if you die your family gets so much more. and Variable Universal Life. Again. I'm no mathematician.. You control how you spend it or use it. 2011 .. or in Excel. You can take out policy loans against the cash value up to 90-something percent.6% for 35 years = $146.. A blend of term plus perm is likely the wisest scenario for a younger individual with a growing family.....Life insurance submitted by LL in USA @ June 15. submitted by Ryan in Dallas @ July 01. Depending on your budget. how did you arrive at: $213 per month at 2. If you don't die.. After 30 years those things should be already paid off.. Get what you need for the time period you will need it in case something were to happen to you. It is foolish to give a blind statement and say..you should treat life insurance the same way. steps of math $213 per month at 2.. Then you are left with nothing to show for. You can take out those loans tax-free.then your spouse and kids will be covered.do it all.which you are likely to outlive. and it works out exactly as shown here if interest is calculated annually. 2010 . The tax incentives are huge.for example. So.000 of whole or universal coverage that will last you for life.but for others who understand the products better know that's not always the best road to take. And that will build cash value.. The math shows whole life is no deal.that will cost you maybe $400 a year or so.. Then things you can do with life insurance are amazing if you do them correctly.so you don't need as much coverage.. and going through the comments here I can see there are some things that people are not considering. Essentially.your wife can pay off the house/debt/college expenses. Utah @ February 05...08:20 PM Sorry to disagree with many that have commented in here.but don't limit yourself to either/or.then get $100. These are great ideas. Fund an IRA for 10 years.07:48 PM Reply I've been looking into getting a whole life policy.817.you can still use the cash value in ways just as you could an IRA.and you can do things with it that an IRA simply cannot do. And just like you would want to diversify your investments.000 of coverage left over that will last you for life. etc for 35 iterations.....19 The math sure is easier with a compounded interest calculator (Google it." Maybe for some people that works. your age and life circumstances are important to look at." Well.. "Get term and invest the rest.. submitted by Jared Stein in Springville.. you have to calculate (($ paid in year 1 x (1 + interest rate)) + $ paid in year 2) x (1 + interest rate). and try a couple different ones).. leaving aside how honest it is (death benefit payout = coverage investment!?). 2010 .... Don't put all your eggs in one basket.and it's tax free... There is no one financial product that is right for everyone.. get $500... "Get term and invest the rest. It all depends on how you use it and what you want it to accomplish for you. I'm a big supporter of Whole life. 76 .817.19? Thanks submitted by student in USA @ July 05..02:14 PM Re.6% for 35 years = $146..and at what stage of life you are in. Blend your life policy something like 80% term and 20% whole or universal or variable universal.if you die you wife gets that IRA cash value and that's it.. 2010 . You will still have at least $100. Use it for a fund for you kids.05:09 PM Reply Can you show your steps in your calculations? For example.... Universal Life.same with life insurance.customize a plan that is right for you and get the most out of your money.. Meanwhile diversify your financial investments wisely.what happens if you are 25 years old and get a 30 year term policy and that's it?? That will give you protection until you are 55.set them up with a perm policy when they are babies and you can pay a chunk of their college with it 20 years down the road..000 for a 30 year term. You get coverage for 30 years in case you die early..

NY @ August 18.. I thought that money was mine but it seems . Would I put every cent that I didn't put into retirement into a whole life policy? Of course not. A 25 year that has a history of financial responsibility and an understanding of markets and investments would probably be better off with term + invest. 2010 . 2. then fund retirement fully. First of all: Taxes. It doesn't make a lot of sense unless you plan to have the policy for at least 20 years.. The amount borrowed continues to accumulate interest. I think ppl should pay off debts first. and each year you max out your IRA and 401k contributions.. that would be the time to consider some permanent insurance.. your returns are more like 4% or 5% equivalent to returns in your taxable investment account. submitted by A Reader in San Francisco @ July 16. You have insurance for your entire life.and you still have a couple thousand dollars left over that you don't need immediately.. At this point in time. submitted by Lynette in NY. 2010 . However we have a whole generation (baby boomers) with negative savings that probably should have purchased whole life 30 . but you can use the money for any purpose if your child didn't go to school. maybe you will only get a 3. Basically in my mind. which could be used. I agree with the above poster (Ryan) that you should have a good mix. Thats why its important agents do their homework. Mutual funds are not for 77 .now I am going to surrender the policy and take out term life or better yet.. Put it into a taxable brokerage account and invest it or 2.not so. I think life isurance is a rip -off for me. then if they find that they still have extra cash.much like buying a house doesn't make sense if you are only going to live in it for 2 years. Assuming you keep the money invested until your are old/retired: With the whole life insurance. Is it worth having access to money in a cash-like account and a also have a death benefit for your entire life? I think it makes sense. You can use that money for things like funding your child's education.. It doesn't pay a lot of return over inflation. that might not be the best return that you could possibly get but consider the following: 1.so when you consider this.Life insurance People who say: "Buy Term and Invest the Difference" might not be looking at the big picture. In that sense it's comparable to a 529 plan.. Still.09:39 PM Reply I'm 60 + years old and I borrowed against the face value of my whole life policy and didn't pay the borrowed amount back.40 years ago.5% percent return.08:48 AM Reply You know what the problem with this term vs whole argument is? you dont know the situation. That money isn't going to go away when the market crashes.. It's even a better equivalent return if taxes go up... to offset estate taxes when you die. if for nothing else.. 3. You could: 1. so much so that I'm afraid I won't have anything left if I should die. However. Buy some whole life insurance. it is like a tax-free cash bank account. you never have to pay taxes on the returns.. or you could use that money to help fund your retirement. You can't do that with a 529. Let's say you're earning a decent salary.. but the money will be there when you need it. and it doesn't count against the child for financial aid (the money in the taxable account would).put the money into a death fund.

But no one I know has that rate! Plus Everyone keeps saying keep the difference and invest. My rate is the same at the time. Look what the big casino selection of products pushed by all the high-profile media types has done to this country. The only possible outcome of blindly trumping one method over the other is hurting your clients and their families.his will more then likely go up since he will now be 52. The power of compound gain which Einstein said was the greatest force in the universe only works provided it is not interrupted by compound loss. with coverage that pays off all the major bills for the wife. I was 24 at the time. I pay $35 a month as a Male Non Smoker with no health problems for $150k insurance. But I have somthing in my pocket. And his policy stops and I cash out. submitted by L Castro in Hollywood Florida @ September 06. You ever here Dave or Suzy or any of the other financial gurus ever .. Not every Adult american has life insurance. 2010 . and we are both back to square one. I am locking in at what I considered a decent rate. For example. IF I need more coverage later I will add a term policy for the what if. Am I rich. I purchased it as a Death Benefit that I could get out of later and not lose everything.Life insurance everyone. I keep hearing people talk about awesome term life rates. ever . Sure it is more coverage but I am not trying to be a lottery ticket of death! I see comercials for like $8 a month term. I purchased a Universal Life Policy for me and my wife the year we got married. but I have talked to more then just my friend who pay as much if not more then me for their coverage.000 In 28 years I will have paid in $11. Enough already. or E-mail. submitted by Sam in New York @ August 27. My friend who is now 32 just purchased a 20 year $200k Term Policy that is costing him $50 a month. There are other ways to go that will put the power of compound gain to work while eliminating the setbacks of compound loss. My thought was exactly that. And I know not every american is investing. Sure if we die in a car crash together his wife gets more money! But lets say we live. neither is term or whole life...760 (adding the 8 years to make us even on dates) So when his policy runs out we will have paid the same amount in.05:17 PM Reply Dave Ramsey and Suzy Orman don't know what they don't know about the benefits of different forms of permanent life insurance. 2010 . The flip thought is if we keep our policies. show me a financial product that can beat the safety features and tax advantages of a life insurance contract. This is the age of Financial Conservation. or Long term care. In 20 years he will have paid $12..no. People need to get informed. 78 . It is one of the greatest wealth/preservation vehicles out there for both living and legacy benefits.repeat. Its situation specific.talk about what can happen when hit with compound loss For people who know what they're talking about. anybody who is using what is known as Fixed Indexed Universal Life as a cash accumulation vehicle has sailed right through the Financial Crisis WITHOUT LOSING ONE DIME! How many of Dave or Suzy's followers would like to be in the same position.05:37 PM Reply Here is a Real Life Apples to Orange-Apples. It is easy to no save that $20 a month savings.

"Fine". Oh yeah. 2010 . you don't "cash out" your cash value. so in fact your heirs do get access to the cash value of the policy Second. That's said. as if our lives weren't chaostic enough. you need to PAY IT BACK plus the INTEREST. all of which would be his money. the money will be deducted from your death benefit. 8%-$8894. This can be problematic as the taxes on earnings may have to be funded by an source of funds not contained in the investment. he was 32? Thats barely a fair comparison." But wait a second. there are GDIUL policies which are less expensive than a traditional UL policy. what will your beneficiary gets then? Nothing. 2010 . First off you can buy a UL policy that has an increasing face value as the cash value increase. Which is better? Term or whole life? 79 .10:47 AM Term vs. Third.. taxes on earnings have not been considered. not the insurance company's. 2011 . Not that I think term is the best solution for the whole mass.08:29 PM Reply This is worse than a discussion about religion. and generate very little cash value. submitted by rottenkids in so cal @ February 24.Life insurance Just my thoughts. as we all know estate taxes are back and liquidity is needed in your estate to pay taxes.) Anyhow. term.04:43 PM Reply apples to apples? you were 24.10:18 PM I think a lot of people who advocate whole life insurance miss one crucial point: even while you are alive. in all the calculations I have seen thus far. you are just handing your hard earned money to the blood sucking insurance company that charges mysterious management fee and commission (for they don't disclose the allocation of your premium. 114 replies I am finally taking my dad's advice and getting some life insurance. whole life insurance. Spending about $4800 over the life of the policy. provide coverage for life.12%-$14987. Fourth. your agent tells you. Think of them as perm. it is just straight forward. which is better? Posted in Life Insurance Questions over 2 years ago. submitted by Maitin in PA @ March 16. 2011 . But the example I gave is thr truth.10%-$11485.. So it makes sense to me. In each case recouping a lot more than he spent. compares to other over packaged products. if you borrow against (or "cash out". he would of gotten it for about 2/3 the price of yours around $20. submitted by money works in america @ November 11. but no. Now investing that $15 he saved for 20 years at an agressive rate because of his age. submitted by Chris in Ohio @ October 05. if that sounds more comforting to you) all the cash value/death benefit. "you don't need to pay it back if you don't want to. I never claim to be right. you BORROW against your insurance. this is often easier to do with insurance that is certain to be there at the time of our death. I'm still quite skeptical about any life insurances other than term. In fact if he would of purchased his term at your 24. and what about your $7000 funeral expenses? You'd be thinking you are saving money for yourself each month.

You are trying to solve a permanent problem with a temporary answer. submitted by Nate Hill in Long Beach..all other things being equal. You cannot compare apples to apples when comparing whole life cash value returns and mutual funds.there are companies out there that actually increase your death benefit as well as your cash value. If you want to disucss and understand what the deal is I can be reached through my wed site johndelaneyinsurance. 2008 . 2009 .universal variable is all a RIP OFF.. universal life..but on steroids.CA @ August 31.04:01 PM Reply You have likely made a decision by now but in truth. 2009 . but bad because they just wasted all their money. Buy Term and invest the difference is such an easy cookie cutter answer. Banks and Corporations buy tons of Whole Life but Banks sell term and want you to invest in their lousy investment products that pay minus 40%. Attached is a chart we put together describing the differences between term. Lastly.. look up PRIMERICA there a AA+ rated company & they do whats right for the customer 100% of the time. universal and variable. 2009 .2008 could happen again. 2) You are making the assumption someone would have the discipline and determination to invest the difference.. 3) Solving Estate Planning using term insurance is short sighted. Whole Life is a far better choice than term . Most Life Insurance Agents don't understand what they sell. also you can checkout thestreet. buy term & invest the difference is the only way 2 go. Mutual funds are risky. How did that investing do the last 2 years for you? You are making tremendous assumptions: 1) people will not need insurance after 20 years or they will still be able to qualify for insurance.would you want to take money out of your investments after or during a year like that? submitted by Brian Todd in Livermore. (Click here for the large version of the life insurance comparison chart. submitted by Ronald Belham in Philly @ July 16.02:57 AM 80 . term insurance is what makes all the money for insurance companies unlike what Dave Ramsey tells you. They have done such a good job of selling this product that even most agents don't understand the products they sell. companies outta the 1400 thats in north America. ive seen slick talking insurance sellsman selling people accidental insurance not really informing them that they have to die of an accident on the scene for the company to pay out. guaranteed. tax deferred..) Feel free to contact me via the contact form if you want some help with your decision. level term has no stipulations its exactly what it is.. whole. Insurance is not an investment. Insurance companies pay out less than 3% on all term insurance policies. No one life insurance product is better than the other and you'd be best served to talk with a specialist who can help you to determine what is best for you based on a variety of factors. It is similar to using a CD. It grows yearly. CA @ September 01... which is good for the individual still living.com .whole life is risk free (as long as you use a strong company). flexible.. It is our job as a Financial Services Professional to find out more about a person's needs and make recommendations accordingly.com it talks about the top 22 life ins.Life insurance submitted by ed walters in athens georgia Ed. Companies make much more money on Term Insurance as less than 2% ever pay off..03:11 AM Nate-Unfortunately you don't know what you are talking about.09:40 PM whole life.Best of Luck! submitted by John DeLaney CLU in Louisville KY @ May 24..

MY QUESTION IS IS THIS AGENT JUST LOOKING OUT FOR HIMSELVE TO MAKE MONEY. Permanent policies are 3x's more expensive then term life insurance. If no one is relying on your income you don't likely need much.Life insurance I compliment your chart.00 BECAUSE MY CHILDREN HAVE GOOTEN OUT OF COLLEGE AND MY TERM WAS FOR MY WIFE AND COLLEGE BILLS / COLLEGE IS PAID OFF. I AM 53 YEARS OLD HAVE ENOUGH MONEY INVESTED IN OTHER THINGS . 81 . submitted by Byron Udell in Wheeling. 2008 . realize that we will live longer then the policies we buy submitted by Edwin in Providence. With the volitility of the market today. "How much can I afford per year?" If your budget only allows a few hundred dollars then term life insurance is probably best for you. How much did a person lose in their whole life policy? 0%. 2010 . Whole life and Universal life are designed to make the Insurance companies $$ not you.if you die before the cash out date then you don't get both.08:03 PM I WANT TO CANCEL MY TERM INSURANCE WITH MY AGENT $635000. I know this because I used to work for these companies.what most agents of whole life dont tell you is that the first three years of your savings goes right into the agents pocket for their commission. If you die. One thing to ask yourself is. 2009 . MY AGENT IS TRYING TO TURN MY POLICY INTO A WHOLE LIFE TRYING TO SHOW ME THAT IT WILL MAKE ME MONEY.06:20 PM Term Term Term.. also. 2008 . 2009 . My point is.. unlike most of us. RI @ February 16. Why? Because no form of life insurance is good if you let the policy lapse because it becomes unaffordable.07:15 AM Reply Ryan. submitted by Ronald Belham in Philly @ July 22... they. I wish this would be in more places for more people to see when they make the huge decision of purchasing a policy. @ March 14. IL @ July 17. Focus on keeping your investments and your insurance seperate. Who ever sells you a Whole or Universal policy makes a boatload of money compared to Term. only future performance of investments hold the answer to what is right. Whole Life is becoming more attractive as an asset class. term or whole. also. submitted by Ryan @ July 24.Buy Term and invest the difference. they make their $ on selling term.09:57 AM The bottom line is this. 2009 . 2008 .01:08 AM not to get into the entire debate of whole life vs.11:07 PM Ron's chart is very useful... submitted by Ken B in MN @ April 03.. The Purpose of Life Insurance is only to provide $$ to your family to take care of your financial obligations.. For one thing. submitted by Matt in Kansas City @ February 04. This is because they make the companies much more money.ie. submitted by RICHARD HAGGERTY in STAMFORD CT. How much money did investors lose by buying term and investing the rest in the stock market? 20%. Any financially savy person will tell you that you should always keep the two separate. term but actually insurance companies pay out on 1% of term policies. 30%. you will be further ahead financially. your rate of return within the savings acct isn't as good as when you invest in other options.10:18 AM Reply Thats also very good and prudent advice that Byron has added about budget and ensuring you can afford the policy for the life of the policy. If you take the savings from Term plans over Whole or Universal for the same dollar amount and then invest the difference.

sure it's only for $10. Insurance is just that. you have to give the box back to Micky D's.will any other investment do that? submitted by Brian T. married. GA @ July 01.06:18 PM Buy Term and invest the difference is the most over used over stated financial anecdote in today's world. Its like paying for a happy meal. Help!! submitted by Robin in Fort Wayne. I've gotten some good information here. permanant.. So my question is how can anyone say term life is better with these kind of fees. Indiana @ July 27.A policy that has a 99% chance oof NOT resulting in a claim and you get to keep all the spent premiums (and all you were on the hook for was the risk). If you are interested in saving then do that separate! Make sense? submitted by Audrey Collins in Boise.Life insurance the savings goes to them and you get the death benefit. 2010 . 2009 . 2009 . I want the most for the least amount of monthly payments. in San Ramon.08:39 PM I just received in mail a whole life quote for$25.08:51 PM That's the same here.. TN @ August 08. Now I'm wondering if I made the proper decision.. and have 2 boys 10 and 13. Also. who does invest the difference? What a whole life. 2008 . If you want them you have to borrow the money.00 when at 70 yrs.. even if you did invest the difference are you taking into consideration tax consequences? A whole life policy can and will continue to grow even if you borrow or take from it. 2008 .. term life is better. submitted by Josh in Macon. Please advise. First of all.or a policy in which you are contractually obligated to return every dime of a customer's premium if they so choose to take that option at some point in the future? If you chose option A. ID @ May 06. Just imagine if you owned a life insurance company.. CA @ May 28. I already had term life through my job.what are the tax advantages? I am 45 years old and have a life insurance policy through my work. Although you are correct that most cash values do not grow as fast as some other investments.09:15 AM Reply make sure what you have at work is life insurance and not accidental death submitted by kevin in crown point indiana @ March 22. 2009 .. I recently updated my insurance and added whole life.but unfortunately very far from the truth. submitted by Bridgette in Memphis... That would be considered dumb and a waste of time right! submitted by Get Real Sucka in Georgia @ November 16... I should just save this amount every week. Maybe for white collar workers? but blue collar workers who will be on social security need realistic insurance submitted by BK @ February 02.000 but I can afford this when I'm 70 as opposed to the retarded rates for term. then I think you need to re-think your postion on term vs.with no rate increases..in case you die. Which would you rather your customers buy.. old( like i could pay that then!). 2010 . or permanent insurance policy does is force people to put themselves first. So you decide..75 a month .04:10 PM All i'm saying is what fool would borrow his own money? If its my money then why do I have to borrow it from you? "Cash value" is like having " equity" You don't own either of them. I knew I wanted more insurance and that's what I did. My question becomes .01:38 PM Your response is a very common one Ryan. I'm 40. 2009 . however where is the risk? Not in whole life! Also. they make it to where your savings will usually never be grow higher than the death benefit.. I probably won't get that much money from whole life over the years worth paying for. did I do the right thing? From reading the comments and reading Suze Orman book.12:44 PM I'm really ignorant when it comes to life insurance. something to leave my son and his family. over 200. But I want more.08:57 AM Reply 82 . and having to borrow the box it came in to take it home and when your done eating.

the last 10 years. IN @ October 27.. You get term insurance strictly for the protection / death benefit that you would want your beneficiaries to receive should something happen to you. Keep in mind. then we can give you your money back plus something in addition to that. Or for a little more money. If you get a whole life policy from a company such as Northwestern Mutual. we will pay a claim.000 whole. yes. But you will be paying taxes on any interest gains compared to tax-deferred growth you can receive in a whole life policy. submitted by Michael in San Francisco. "term and invest the difference" probably isn't the best option for you. Insurance companies make so much money because everyone buys term and they hardly pay claims!!!!!!! Now I would rather have someone buy the correct face amount rather than less amount beacuse of the product.. 2008 .. so will you die within the next 10. NYL Financial Advisor Series 7 & 66 Registered Investment Advisor Final Note: Beware of "advisors" that have a 63 series license compared to a 66. 20 or 30 years? So if you know when you will die. I'm talking strictly permanent WHOLE life insurance. Go with Whole Life. Now you could save the amount in a savings account. Now with whole life. CA @ April 22. we can gurantee that regardless when you die.11:25 AM Reply A couple of facts: 1) Only 1% of term policies pay a death claim. & strongest mutual/private company) for example has paid a dividend to our policy-holders for the last 160 years. 2) 90% of Term policies are cancelled.. Just my two cents. Even better. My point is to buy majority of term. submitted by Andrew in Greenwood.. or New York Life. if you dont want the death benefit. NYL (the largest.06:41 PM That is horrible advice!! Do your research! Ughhh 83 . The best policy is to buy is the one that is in force when you die. thats the one you should go with. replaced or converted within 5 years after purchased.000 term and 250. What does that mean to you as a consumer? It means the likelihood and peace of mind knowing you can get an average after-tax interest return of 5%. so buy 750. stock market has averaged returns of 4%.Life insurance It all depends on what you want. submitted by New York Life Financial Advisor in CA @ September 16. 2008 . Suze Orman suggests an old school train of thought where you buy term & invest the difference.000 term and 100..000 whole? or 900. 15. TIAA-CREF. you get it if you think you're going to live a long life and want the "living" benefits that a whole life policy can give you. 2009 . oldest. These 3 companies have the highest possible credit ratings an insurance company can receive out of the 1200+ companies that are out there and because of our financial strength.000. The cash value accumulation will be affected by which company you buy the policy from since not all WHOLE life policies are the same and also how much you plan on saving per month for your policy. but why not buy an additional whole life with it? $1. Unless you can really say to yourself that you're investment savvy. In addition... in today's market. I'm not talking UL/VUL policies. Take out taxes and that return isn't enough to even keep up with inflation. you can expect after-tax returns on average of 5%.000 =Total need. 63 licensed agents have no fiduciary duty to their clients and do not have to look out for your best interests. interest rates on CD's and money market accounts are laughable. There's nothing wrong with that as long as you are confident you can make 5% after-tax doing investments.11:56 AM Term insurance actually makes more money for insurance companies than whole life does.

It serves its purpose when you have large needs and limited budget. 2008 . Which is why clients for the first 1-3 years don't accumilate any cash in thier "Savings component" #2 Whole life agents also get residules on a "as earned bases". and I believe it's in the client's best interest to go with the best company. #1 Whole life policies provide the company with cash for 1 to 3 years from the savings of client. You can purchase a tax deferred investment that invests into equities without all the fees that take away from earnings. With the rate of return in the stock market being so nominal over the years I don't see the additional risk in purchasing this type of policy justifiable. Variable life has many fees and administrative charges. NY @ November 13. submitted by Mike in Westchester County. which yields dividends. and the subtraction of what you borrowed from yourself.000 riders for her kids $49 dollars a month Now you pick Oh they will try to give you a better deal when they are about to lose your business. Yes.11:17 AM Reply What everyone overlooks about life insurance is this . Buy term insurance and invest the difference! submitted by Ronald Belham in Philly @ November 13. 2009 .00 riders for the kids $80 dollars a month! We did a new policy 250.06:20 PM Don't let the stupid people who sale Whole Life fool you! I just did a policy The woman had 25. Some people also use whole life as a savings vehicle to create tax-free cash flows for retirement.08:14 PM It is my belief that if your primary goal in purchasing variable life policy is cash accumulation then I believe there are better ways to accomplish this. The death benefit is not guaranteed. But why do you have to ask for a better deal ? that's because they are to busy lining their pockets! submitted by Robert in Georgia @ August 30. I found that most wholelife. I hope those Term insurance guys kick your butts! submitted by Get Real Sucka in Georgia @ November 16. ID @ May 06.Life insurance submitted by Audrey Collins in Boise. There is a possibility that you may have to increase your premiums over the years due to the poor performance of the policy. but term gets more expensive as you get older. 2008 . but it's better for the client in the long run.10:09 PM Reply I am confused with the current down turn in the economy My husband and I are 58 &59 yrs old with IRA's but no life insurance at all Is it too late to get term or is whole life way to expensive for us at this age (we are in very good health) 84 . the Borrowing of your own money. 2009 . college. I sold whole crap and variable crap and universal crap. to motivate them to sell these products. which have the potential to pay your premiums for you until you die. The cash value is also not guaranteed. etc. whole life (Permanent insurance) is the only way. hence its name. wasn't explained. you'd have to be one evil person to set up something like for a family. ("Whole life" lasts for your whole life. ChFC) before making a commitment. and not the one that pays me a higher commission.how long do you want it to last? Term is cheap because 99% of the time you will outlive the term of the policy. And I won't be coming back in two years to replace your policy with a new one (thereby earning another commission). Meaning everytime a client pays. 2009 . Whole life has higher level premiums up front because it builds a cash value.from your face amount! I mean damn.06:29 PM Term insurance does not make more money for the company than whole life. and at some point you won't be able to get any more because you're too old and in poor health. Cheaper is not always better! Here's another hint: so-called "independent" insurance brokers are often paid higher percentage commissions on term from weaker companies. and be sure to go with a solid company. I saw that families were being ruined and lives were being hendered because the savings was kept by the company.000 3 10. we make more commission on whole life because the premium is higher. Consult a knowledgeable insurance professional (CLU. not the cheapest. agents get a small portion it. When I represent a certain AAA-rated carrier it's because I know their products and underwriting standards. and cash value agents actually have term insurance! Now if you don't believe in it for your family why would you sell it mine. and the insurance company will keep your premiums and never have to pay out a death claim. sometimes more than 100% of the first-year premium. Ironically enough.) If you want a guaranteed death benefit and a very efficient tax-free wealth transfer vehicle.000 and 3 10.

you need to talk to a financial advisor. First never use word investing …. I think life insurance makes good sense for you and your husband. the first thing you should do is find a high quality variable annunity that works in some guareentees and stick yoru money in there.11:45 AM I also want to make it simple … First of all. well. 2008 . Of course not b/c interest is adding every year to the loan. At your age. When you buy whole life insurance. When you are buying Whole Life Insurance (doesn't matter which one) you think you are buying Insurance+Investment …. I agree with some of you. indirectly. Be careful though. All that being said. Depends on what kind whole life insurance you bought (straight. when the policy amount is higher than your premium company start taking money from your cash value account and keep open account until you have money there.000 with 8%. bank tells you "yes we can give you money (remember your money) but as a loan with 8% interest rate". From some of my Clients I heard that Agents told them that they do not have to pay any interest on it …. 2008 . then your policy lapse. I am Financial Advisor.. Never both. If you want to take money from you policy. I would probably buy some whole life insurance on your husband. so it goes up and up.. so their responsibility is less and less from year to year. If he outlives you. IN @ November 24. What that means? Decreasing Term means company is paying for your insurance less and less b/c your cash value is accumulating. and that money will be replaced by the life insurance upon his passing. I would never give ironclad suggestions on the internet. Life insurance is only income replacement … remember it is only income replacement in the event something happen to you and you won't leave something behind. ART means that company renew your policy from year to year. but I am paying also into my investing" …. we should said that life insurance is not investment vehicle. you must borrow against it (usually 6-8%) !!!! It's like: you go to the bank to put money into CD for 3%. after 1 year you go to the bank … to take it but bank tells you "sorry mr/mrs but the value is ZERO". because some of them will dismiss the life insurance. and I also believe that if you want to help someone... so. I believe in term b/c in my opinion Is should have (or my family) maximum protection for less dollars for some period of time until I accumulate enough money to spend on my retirement. Of course. but you still paying the same amount. Moreover. Some VAs can actually give you the better of 7% or whatever the stock market does in a given year. it's not make sense if you only buy only term insurance (although it's better than nothing) . he is still getting an income from the VA. universal. People can say "yes.Life insurance submitted by Linda in Gig Harbor WA @ November 19. submitted by Andrew in Greenwood. Put the VA only in his name to get the highest payout. so if you take a loan for $10. variable) you are buying: Decreasing Term or Annual Renewable Term. To be completely respectful in discussing this. DO you also have 401ks at work? Secondly. go to the bank after 5 years. and you could outlive him by 8 years. sit down with him/her/them and see what their situation is and decide how to do help. usually your investments in whole life insurance are between 2-4%. What's more. that everyone situation is different. that the second nice benefit is cash value … disagree …. and I saw many disclosures from insurance companies (whole life) … people believe me it was terrible. I think.. then after the year you loan is 85 .07:46 PM Reply Linda. You get the better of the two. even though you may end up wanting it for legacy reasons. you wait. my question is why you never received both of them: when you die you received Death Benefit (if any) and company keeps your investment or if you will live until age 100 you received your cash value (if any). you're also buying TERM insurance. is it can guareentee you an income for life.. he will probably pass first. why? someone wrote down.

Would i be better off by investing my self if i have term or should i be letting the whole life insurance company do that if i buy whole life at higher premiums? please suggest if i've written clear enough. The cash value that accumulates inside the policy is tax deferred until withdraw. In long run investment is always good. let me know. 2009 . nobody else … always check statements at least each 3 month and at least know what's going on the market. At that time any profit (premiums minus cash value) would be taxed at the policyholders tax rate. appreciate it. Term insurance cannot accomplish this. submitted by Paul in Vancouver. 2008 . then medium (3-5 years for some purpose). mortality or any other factor. so long run. Whole Life Insurance is designed to provide permanent protection and a long term means of accumulating cash.02:27 PM Reply Bottom line.02:03 PM Reply Whole Life Insurance has a guaranteed death benefit. submitted by Ronald Belham in Philly @ December 29. submitted by Ronald Belham in Philly @ December 16. Also so much of term insurance i've heard and read on the internet that its cheap and invest the difference. because it does make a different. let me know: info@ezconsultingcorp. IA @ December 16. Dodge. but for me always is: First . emergency (in the event something happen and you need money right now). have to pay interest on my own money if borrowed and less cash value if i die. Canada @ December 27. The death benefit would not be effected by interest rates. and more …. One more word to the person that wrote: Final Note: Beware of "advisors" that have a 63 series license compared to a 66. It's not a simply case. keep eye on it.Client. Most people lose big bucks b/c they portfolio was design not appropriately at current situation … that's all.800. Guys. still somewhat(lots) confused. Saying that there's no difference between insurance companies is like saying all car companies are the same. and so on … of course you do not have to pay interest.com Investment: it's another case … "buy term and invest the difference" … means invest for your retirement. 2008 . Then when loan exceeds the value of the cash value. Always remember. no or less interest earned on premiums for frst two yrs.Life insurance $10. In whole life. call your advisor and ask him/her. I can write.30 years depending on what company you go with. Of course. and write … if someone needs help. You may then accumulate significant values that are tax deferred.08:12 PM Reply The main purpose of whole life insurance is to provide permanent life insurance protection for your entire life. If anyone needs help. it's not a NON-PROFIT Organization. Everything is based on your ethics … for me it doesn't matter what license someone have. 63 licensed agents have no fiduciary duty to their clients and do not have to look out for your best interests. submitted by Daniel in New York @ February 24. 86 . The cash value of whole life insurance is can be very beneficial if measured it in the long run. If you do investment remember that you should have: long term bucket. cash value guaranteed and tax advantage? I saw that whole life provided all those(from the chart)but I have no idea what they mean?? submitted by Vicki in Ft. Second-Commission. That's my opinion. medium bucket and emergency bucket … Start from long (retirement). If you are not sure. the policy lapse (you have a chance to pay it back in 30 days). i'm 43 yrs. b/c if you are not a good person nothing will help you. Whole life insurance yields pretty high returns over the course of 10 . 2008 .02:29 PM Reply well. This is your money. there is more and more. you need to determine what insurance company you buy insurance from. 2008 .12:25 AM Would you please go into detail about death benefit. after 2 years $11664. married and have two daughters 11 and 9.C. B.

Do not sacrifice cash values for life insurance benefits. New York Life. Imagine.000 when they should have purchased 250. variable life or index life insurance. Whether you purchase term insurance. You buy a house because you want to own it. and have an asset to call your own. is ridiculous. Like many others have said. The cash value is a nice secondary benefit (although you do want the highest possible. What should I do! would it be pointless at this time to cancel the polocies after paying into it all this time! submitted by Renata in Ontario Canada @ December 04. Buy term and invest the difference became popular when stock brokers became able to sell insurance due to deregulation. the cash builds up significantly and you've successfully protected a large amount of your assets. 2010 . People buy it because they want the death benefit to be permanent and guaranteed to pay off at death. if you go with any of them aside from the 4 mentioned above. If something unfortunate happens. The rate of return is a nice aspect of home ownership but not the primary concern.11:23 PM Reply I bought a Term 100(with values) 10 years ago for both myself and my husband monthly payments of $85. whole life. Naturally the stock market should give a higher rate of return over the long run than your primary residence.01:08 PM Reply The idea that "buy term and invest the difference" is the right choice for everyone. by paying high premiums. If your policy lapses your withdraw may be considered taxable. the family gets a much higher return than what you put in.00 per month for life! with the Westbury Canadian Life Ins. Mass Mutual. I believe the most important aspect is getting the proper amount of coverage for your family. I've been told by many that I would have been better to have bought into a term and placed the remaining amount into rrsp'. Louis @ January 19. and Guardian are 4 companies that will probably yield between 5 9% returns depending on the company you choose. 2009 . pay it off. it can be used not just as life insurance but as a tax shelter for your money. 2009 . Whole life is very similar. For the older folks. where as term is like renting. At this point in my life I'm asking if I bought into the right policy! or should I cancel and buy into a term policy with another company.Life insurance Northwestern Mutual. PA @ January 27. no matter what their situation is. If you live strong and live long. it depends on your situation. Always consult with an accountant. But out of 1200 companies. so he would get paid for it) and take the difference between your mortgage and your rent and invest it in the stock market. 87 . Sometimes individuals will purchase a whole life policy for 100.09:45 AM Reply I agree with Ed. submitted by Alex in St. A good example for those who may be somewhat confused is that whole life is like owning. People who say term is always right (Orman et. submitted by Ronald Belham in Philly @ January 20. When withdrawing cash from a life insurance policy be careful of the interest rate charged by the insurance company. Imagine if your stockbroker could suddenly sell (and rent) real estate and explained to you that you should sell your home. al) have a very simplistic view to the financial planning process and probably are much more focused on making money for themselves than they are the well being of their "clients" or the people they "serve". even when it comes to financial planning. There is no "right or wrong" kind of life insurance. submitted by Ed in Pittsburgh. Both serve a purpose.04:22 PM When purchasing Whole Life or Universal Life insurance the company you pick is extremely important to your long term cash accumulation. so why pay a mortgage when you can get a higher rate of return on your money elsewhere? You would never do this because rate of return does not dictate every decision in your life. you might as well buy term and invest the rest. you're building up your cash values quickly. 2009 .000 of term insurance. rent a similar apartment (from him of course. Everyone is different. The cash grows tax deferred and can be taken out tax free if done properly. I would also consider Prudential and John Hancock in the group of companies to consider. hence the importance of a good company as others have mentioned).

the insurance company pays out the $200.... submitted by Ronald Belham in Philly @ February 06.618.02:33 PM Reply The type of life insurance policy a individual purchases should not be based on what type of insurance is most or least profitable to the insurance company.com David J Horsey Jr. A 30 year term for $100.000 would cover that need. MO @ February 06. submitted by Ronald Belham in Philly @ February 17.10:37 AM Reply Term insurance.000 goes away. Your purchase which is based on your needs should be the primary focus. Email me if you have questions. which is lower premiums and accomplishes your goal of a lifetime of insurance. so why do you want that money associated with the life insurance? The word "investment" should never be used with life insurance.000 and the $50. 88 . There is no wrong or right.. Cost and coverage are the primary reasons why. Everyone is different.. You have a $200. you can get whole life that is guaranteed insurance for your entire life with no equity growth.don't pick term or whole.000 policy with $50. CLTC Clearview Insurance & Finanacial Services submitted by David Horsey in Springfield.. 2009 .. In all reality. My advice. you purchase a house and take $100. if you do a solid analysis of your own personal situation. return of premium term insurance. indexed life insurance. Everyone has different needs. variable life insurance.there are so many different types. The only bad decision is the decision not to purchase life insurance.. For example.. you do not get the cash value when you pass away.. do it in an investment product. 2009 . These are the types of events that should be covered with whole.000 of cash value at death.. I would never say that whole life is bad for everyone nor would I say that term insurance is bad for everyone. you should really look at your life insurance probably about every 4-5 years as your needs change over time. so why overpay on a whole life to cover a specific need? If you have a 4 year old and want to cover college expenses you will not have that need in 20 years so term works well. 2009 .01:51 PM Reply Make this simple.12:35 PM Reply In reply to Tim's question. the analysis will tell you how to set up your life insurance. On the other hand. the need to replace income never goes away.00 This policy has accumulated dividends over the years which are paid at death. Term life insurance gives you a death benefit for a specified amount of time. most of the time a blend of the products is the way to go. If you want to accumulate money. funeral expense never goes away. One thing you must understand about cash value in whole life policy. The best way to set up your life insurance is a blend of term to cover specific needs and whole life to cover needs that never go away.Life insurance submitted by Ronald Belham in Philly @ January 28. Term insurance is popular for a reason.dhorsey@myclearview.000 loan for 30 years. whole life insurance. 2009 . If you want to guarantee no market downturns. I am not a believer in equity (cash value) building life insurance. The death benefit that is paid to your family is the 13.unless you have a policy that adds the cash value to the death benefit (which is much more expensive). The type of insurance you purchase depends on your individual situation. look into equity indexed annuities. and you should cover specific needs with specific insurance. To be properly set up.

usually your investments in whole life insurance are between 2-4%. let me know: info@ezconsultingcorp. Of course not b/c interest is adding every year to the loan. when the policy amount is higher than your premium company start taking money from your cash value account and keep open account until you have money there. so if you take a loan for $10. One more word to the person that wrote: Final Note: Beware of "advisors" that have a 63 series license compared to a 66.com Investment: it's another case … "buy term and invest the difference" … means invest for your retirement. then your policy lapse. Never both. Most people lose big bucks b/c they portfolio was design not appropriately at current situation … that's all. Moreover. why? someone wrote down. nobody else … always check statements at least each 3 month and at least know what's going on the market. but you still paying the same amount. there is more and more. Of course. and write … if someone needs help. This is your money. the policy lapse (you have a chance to pay it back in 30 days). then medium (3-5 years for some purpose). That's my opinion. It's not a simply case. bank tells you "yes we can give you money (remember your money) but as a loan with 8% interest rate".12:30 AM Reply 89 . emergency (in the event something happen and you need money right now). medium bucket and emergency bucket … Start from long (retirement). so their responsibility is less and less from year to year. Depends on what kind whole life insurance you bought (straight. my question is why you never received both of them: when you die you received Death Benefit (if any) and company keeps your investment or if you will live until age 100 you received your cash value (if any). let me know. indirectly. and more …. Then when loan exceeds the value of the cash value.05:20 PM Reply I also want to make it simple … First of all. and I saw many disclosures from insurance companies (whole life) … people believe me it was terrible. that everyone situation is different. you must borrow against it (usually 6-8%) !!!! It's like: you go to the bank to put money into CD for 3%. I believe in term b/c in my opinion Is should have (or my family) maximum protection for less dollars for some period of time until I accumulate enough money to spend on my retirement. so.Client. If anyone needs help. If you want to take money from you policy. it's not a NON-PROFIT Organization. From some of my Clients I heard that Agents told them that they do not have to pay any interest on it …. it's not make sense if you only buy only term insurance (although it's better than nothing) . you wait. variable) you are buying: Decreasing Term or Annual Renewable Term. that the second nice benefit is cash value … disagree …. I am Financial Advisor. so it goes up and up. call your advisor and ask him/her. universal. In long run investment is always good. Everything is based on your ethics … for me it doesn't matter what license someone have. I agree with some of you. When you are buying Whole Life Insurance (doesn't matter which one) you think you are buying Insurance+Investment …. Second-Commission. then after the year you loan is $10. so long run. 63 licensed agents have no fiduciary duty to their clients and do not have to look out for your best interests. and I also believe that if you want to help someone. go to the bank after 5 years. after 2 years $11664. 2009 . we should said that life insurance is not investment vehicle. Of course. If you are not sure. b/c if you are not a good person nothing will help you. First never use word investing …. you're also buying TERM insurance. but I am paying also into my investing" …. When you buy whole life insurance. after 1 year you go to the bank … to take it but bank tells you "sorry mr/mrs but the value is ZERO". but for me always is: First .000 with 8%. sit down with him/her/them and see what their situation is and decide how to do help. keep eye on it. People can say "yes. Guys. and so on … of course you do not have to pay interest. What that means? Decreasing Term means company is paying for your insurance less and less b/c your cash value is accumulating. ART means that company renew your policy from year to year. submitted by Daniel in New York @ February 24. I can write. Life insurance is only income replacement … remember it is only income replacement in the event something happen to you and you won't leave something behind. 2009 . Always remember.Life insurance submitted by Ronald Belham in Philly @ February 23. I think.800. If you do investment remember that you should have: long term bucket.

money making investment.. I would be wary of any non-guaranteed portion of a Whole Life Illustration. unless you have a MEC). Even if your agent says "We've always paid around 5%" You may want to see if that's the guaranteed dividend. however. Compare that to a 10 year T-Bill rate of 2. As a pure.49%. 2009 . WI @ February 25. So.17% in the first 10 years and 2. grandchildren. then yes. they also recieved yearly dividends. it is not just that my investments equal my death benefit. then DEATH BENEFIT needs to be my calculus.10:33 AM Reply 90 . putting the money in the stock market makes more sense. it is the bedrock foundation. but my company has paid dividends since 1865. WL is like buying a bond. life insurance would be a wise purchase.01:52 PM I am a financial advisor with a major wealth management firm. NOT cash value (though they are tied together.03:29 PM Reply All the questions I've had for years have just been answered! Thanks for a very good web site. @ April 12.78% and a 30 year rate of 3. submitted by Andrew Burks in Salem. submitted by Wanda Sobota in Hilliard . that I would be happy to share. Investment monies are taxed (outside of the Roth). a permanent life insurance product is the best tool to use. when it comes to making sure my wife and I can live it up on our savings (investments). Also. Just a comment from someone who's family has been screwed by uncle sam. when so many financial companies are having to cut their dividends because of market losses. IN @ March 30. Also. 2009 .9% in years 10 to 36.02:29 PM Reply Comparing Whole Life to other investments must be done apples to apples. I would never recommend a client do that. while WL death benefits are exempt from Income tax. INTENTION is important in the illustration. whereas I plan on retiring on my Cash Value and Dividends. Fla. If you look just at the guaranteed portion of the illustration. submitted by Ronald Belham in Philly @ March 16. submitted by Blair in Georgia @ February 25. Do you need life insurance forever? Is your estate large enough where you will be subject to estate taxes. we buy WL. dividends in long standing mutual companies are historically sound. 2009 . it came out to earn 1. Firstly. 2009 . that she is taken care of after I die. when it comes to estate planning needs. As a financial planning tool. but also that they beat it. 2009 .Life insurance Of course WL shouldn't be looked at as an investment. submitted by Brian in Middleton. If I am using WL as an investment tool. If your term insurance purchase was based on sole purpose of providing protection while your kids were in college than maybe you should cancel the policy. If so. and that our children. Perhaps in your financial planning you haven't done a lot of estate planning so you haven't come across the need for this. If my objective is RETIREMENT planning for myself and my spouse and my hiers and my charities. and other charitable organizations are taken care of after she passes.01:24 PM By converting your term policy to a universal life policy you will guaranteed life insurance protection for the rest of your life. etc. Policy owners during the Great Depression recieved not only their gaurentee interest. I recently completed an analysis of a NYL Whole life illustration. DB is always higher. Especially in light of the current economic environment. I will not speak to other's dividend history.

is the flexibility you'd have if you bought the whole life. guaranteed premiums. Term insurance is not a waste of money.10:06 PM 91 . Cash values can only go in one direction. Life insurance should be permanent and forever. Insurance costs . theres pretty much one choice and one choice only. The likelihood is STILL there that a death could occur.000.UP! submitted by Sabre in NYC @ April 22.are generally the same across all policy types. Why would I buy a term policy during my working years when the likelihood of death is basically 0%.000.000) that totals $1 million. right? Otherwise it's been a waste of money. thats money paid to an insurer and is not returned to you. varied and give the consumers objective advice.Life insurance I enjoy this site because the questions are real life situational questions that are asked every day. Why make that decision now. submitted by Ronald Belham in Philly @ April 13. then decreasing the term insurance benefit as the whole life increases in value (so you maintain a steady $1 million of benefit up to age 85). There are a lot of reasons. leverage your other assets. and I grin every time I write out a premium check because I know it's safe and secure. the money you pay in comes back with dividends. and I'm already making more in dividends and cash value increases than the amounts I write in premiums. Loss 100%! Ofcourse in some situations it does make sense. though. availability of using dividends to offset premiums in the future.live off the interest.. The presence of whole life in your portfolio provides you with options. we still buy it because it's cheap and you never do know whether your time is going to be up tomorrow or 50 years from now. Why not purchase a large term life insurance policy during the families growing years and then later in life convert your term insurance to whole life or buy a new policy.04:58 PM Reply Term is so cheap because they do not pay alot of death claims. If you're paying $300 a year for a $1 million term policy.. flexibility to use cash values to pay premiums when I need to.000) and whole life ($300. Whole life is an investment. etc. will cost around $370. Dividends.when measured over a lifetime .04:22 PM Reply Term is an expense. then renewing every 10 years until age 85.. Assuming you're 35 years old now and you want to have $1 million of life insurance in force until the day you die (assume age 85): -Buying 10-year term policies. I spend a lot on whole life insurance every year. take the pressure off other assets to perform. -Buying 20-year term policies will cost about $380. Which is the most expensive? Hard to say. Can we say the same for our mutual fund accounts these days? No way..eg. I believe this type of site is more informative than most. guaranteed death benefits. The answers are direct. guaranteed cash values. do you think there's a bat's chance that the insurance company expects to pay out on your policy? Definitely not..000. The protection and low cost are invaluable! submitted by Ronald Belham in Philly @ April 22. submitted by JB in Denver @ April 21. You may not even need life insurance when you retire. will cost about $375. Of course. Whole life doesnt care why you bought it.04:50 PM Reply Why is term so cheap? Think about it. No risk. -Buying a combination of term ($700. The difference here. If you had to live through retirement just on your other assets. Here's something interesting to chew on. I might as well make sure it's going to be in force when I actually need it.. 2009 . 2009 . then drop it during retirement when the likelihood of death during retirement is 100%? If I'm going to buy insurance. when you retire and dont have the need for insurance then you can use it for anything else that you want. Putting other assets at lower risk mean your chance of success is greater. the chances being more than 1%. 2009 . 2009 . Guaranteed returns.

. 2009 .10:07 AM Reply There are many choices when deciding what is the proper type of life insurance for a person to buy.11:54 PM Reply I dispute the idea that term insurance is only for people with modest means. Is the correct answer: term insurance. Everything else depends on your own finances. submitted by Ronald Belham in Philly @ May 12.all of the money you would have paid for whole life. I would argue that its rate of return is competitive.Life insurance Reply Term is for you if you are of modest means and expect your income to remain relatively stable. 2009 . is the decision to purchase a policy.01:25 PM Reply Term is excellent coverage for working families with children. liquidity and tax advantages.. The most important decision. and the retirement saved up to that point should be sufficient. there is only a 1% chance that it will pay out over... I already saved for retirement(money that would have gone to a whole life policy) and that money is there for them. has an actuarial cost with the assumption of a much greater chance of claim. hence its higher cost. You simply need economic replacement of your life in case of a catastrophic loss....03:30 PM Reply The financial advisor (also an independent agent) who is working with us wants us to only contribute up to the match in our 401K and use the rest for whole life insurance. 2009 . I feel very uncomfortable with not maximizing the 401k first before investing in life insurance. whole life insurance. you'd be hard-pressed to find an investment that could return the equivalent taxable return on a linear basis (between 7&8%) that shares the above mentioned benefits. the need for a large death benefit is gone.. submitted by Ronald Belham in Philly @ May 26. then there is no death benefit for me(unless I have group through a job).00 that purchase term insurance. 2009 . We are both in our 50's and have been maxing out on our 401k's for a few years now. Decrease it to your needs at the time. I personally know alot of people with incomes over 250. Children are grown. this is the essence of all insurance. TX @ May 11. However. specifically whole life.before retirement and a few years after Term as been cancelled.Does this make sense? submitted by Mary in DC @ June 01. variable life insurance.. 2009 . I firmly believe that any reference to a whole life policy as an investment product is wrong. You do not always need economic replacement of your income for your entire life.11:08 PM 92 .. An insurance company is willing to be on the hook for hundreds of thousands in death benefit for a very small premium because they know there is a miniscule chance a claim will be paid. If you have a linear 5% rate of return tax-free and your tax bracket is 35%.well I do not think my family needs an infusion of hundreds of thousands of dollars.. submitted by Chris in Texas @ May 22. The second most important decision is to buy the correct amount of coverage.Also he thinks my husband should take out the single annuity pension when he retires because we'll have the whole life for me. There are many different ways to approach the solution without any answer being wrong.. then obviously you wouldn't want to cancel since your need has just increased with medical bills. If you get cancer and will probably die sooner.. If I die at 75. It has multiple benefits no other financial instrument possesses: Creditor protection. Permanent insurance. Of course it would make sense to look at your situation every few years and perhaps decide to decrease term coverage instead of cancelling.could be in savings account ready to go when needed any time.. The point of life insurance is to provide for those who need it in the small chance that you die. If I die at 60(worst case scenario). Situations are different. But remember.say 20-30 years. But the amount you are willing to give up is very small compared to whole life over those years.should be very few bills. I don't understand the logic.. Yes. indexed life insurance or universal life insurance.. submitted by Axel in Houston.house should be paid off.. and what you want out of the program.

we are told to live off the interest of the principal. and new products will emerge. we are scraping cream off that top (interest). considering the future tax liabilities. If my wife and I retire at age 65. We may have to touch our diminished principal again in order to keep up our standard of retirement living.e. The market rebounds next year. 93 .04:32 PM Reply Ron. Has the market consistently gone up EVERY year over the last 25 years? Has it ever done that in ANY 25 years stretch? No. inflation. and then it is getting taxed at what will be a much higher rate for EVERYONE in the future (so what's the point of pre-tax?). eventually. We are not making a fair comparison. If you retired in 1985. our advisor gave us the same advice. and now the nest egg is less. especially when a market like this or 1987 hits (those are within 25 years of each other) . This is a multi-hour discussion I will try to boil down to this: When ever we have the nest egg strategy. PA @ June 04. When he crunched the numbers. we may want to consider living on LESS than the full interest amount. submitted by REA in York. Should you limit your lifestyle (and let's face it. The rational was the lack of flexibility for use of the funds inside the 401k (i. right now. penalties for withdraw. etc) plus the potential higher tax rate at retirement. Additionally. 2009 . what is around today that was not around in 1985? No one had a cell phone in 85. you probably currently do not). there is a 50% chance one of us will make it to at least age 90 (probably her). and your retirement income DID NOT increase for 25 years. which reduces the size of our nest egg. Now. I respectfully have to disagree. So. and lifestyle. you have to touch principal. just because you locked yourself into the "nest egg" situation? So. you would have a terrible time living on 2010's prices. but that is another thought. our 401k's give us a tax break now. but the TRUE rate of return must be measured against increasing taxes. That's 25 years. things will continue to evolve. Remember. let's see how a Whole Life policy gives us a pass to use our 401k account more freely.10:55 AM In regards to your decision to either maximize your 401k contributions or paying premiums on a whole life policy I believe the better choice is to maximize your 401k contributions. 2009 .Life insurance Reply Regarding the decision to maximize 401K contributions. the return did not look that great for funds invested over the company match. based on re-thinking what exactly we are comparing. but our interest is based on a smaller principal. but could anyone reading this imagine their lives without one now? Anybody keep the black and white 18'' TV from their childhood? Or did more people on here go out and buy a 42'' plasma? The point is. we have our bad year. The 401k (pretax) contributions will out perform the whole life thereby giving you a larger nest egg! No comparison! submitted by Ronald Belham in Philly @ June 02. as we will need to GROW our nest egg DURING retirement AS WELL. Further.

and it should be the "bonded" part of an individual's portfolio.so. This Cash Value is available for you to borrow against the policy. I appreciate anyone who took the pains to read this far.which is better depends on your situation and tax bracket. BECAUSE WE BOUGHT WL ON BOTH SPOUSES. and the other 20k comes to you tax free.. We are free to spend down our retirement accounts.1---about $31.... because when one person dies. You are now in the 15% tax bracket (only the qualified money is taxable). tax free in retirement is the way to go.. Whole Life is funded after tax...com/webdocuments/The%20Whole%20Story%20of%20Whole%20Life%202005.that money in a 401k enjoys tax deferred growth.so. because we used part of our money on the premium dollars for a whole life policy. No longer do you have to live on interest. you can pull 20k out of your WL and 20k out of your 401k.. as we can safely allow the interest of that loan to compound inside the contract. as it is in the form of a loan on the contract. But what if we spend the assets before we die? Simple answer.. 2009 . this is the most diverse financial tool available.. (quick aside.. instead of pulling $40.000 out of your 401k to live on. As a matter of fact.000 after taxes EX.. at least STOP putting money in your 401k after the match is meet.Life insurance WARNING------WHOLE LIFE ADVOCATING------WARNING!!!!!!!!!!!!!!! Our 401k is less than in the first example. with the balance going to the beneficary.... and having it taxed in the 22% bracket. Here is some recommended reading: http://www. Why? Now. and I'm afraid it is just the tip of the iceberg on the Whole Life story. because you have a smaller amount that is taxable at a lower rate than in the first example. Andrew Burks submitted by Andrew Burks in Salem. you should have accumulated a decent amount of Cash Value..this is money we never intend to repay. your actually get to have more money with the second strategy.pdf Basically...2---about $37.. and plug it into a ROTH) Whole Life becomes the PERMISSION SLIP for you to go out and spend down that 401k account.000 after taxes (the 20k from the WL policy is tax free) It's a beautiful thing.. you could use one of the spouses policies for this very purpose IMMEDIATELY when you retire. That was a lot of information..12:34 AM Reply 94 . IN @ June 05.for most people. EX.. If you have a QUALITY WL policy. the other has a large influx of cash they can use to live on the rest of their lives... but the money in a whole life policy is NEVER taxed as income. we are paying taxes on the money right now. even if you hate my WL talk.lifetax. Moreover.. at which upon death it will be paid back.

. Variable Universal. Universal.. First of.or last 30..heres a good question for the "advisor" who is really an agent.. both products provide value in and of themselves. It is such an easy sell. Here's a question. I'm 41 and am more confused than ever. If you put all your money in WL.or term? Be honest.do you think you will be in the same or better health when you are 65? Also.. 2009 . it's not that intelligent and that can be seen by the multiple baby boomers who have to work longer because the market tanked. there are only about 4 companies that are even worth mentioning. What has it averaged over te last 20........ A 30 year yield of 7-10% sounds pretty good to me..where does it all go? Obv. submitted by JW in Lansing. Believe it or not just because you average 10% a year for a number of years. you can really tell what companies each of these people work for. Have your "advisor" run a side by side including all fees and tax implications based off of your actual tax rate.. CA @ June 07.12:31 AM After reading a lot of the posts. anyone who believes buy term invest the difference has not compared WL products vs investment.where do you earn higher commissions? Whole Life. There's nothing wrong with asking this and they should have no problem telling you. I want my family taken care of when I die but don't want to waste my money getting there.Life insurance Andrew. Bottom line..01:45 AM Reply I have both Whole and Term... 2009 . One more thing. I could not have said it any better myself!!! Like I said earlier. submitted by Alex in St.05:36 PM Reply Boy. I love how no one brings this up when they address guaranteed values in WL.. it's also not that intelligent because you're denying yourself gains that could allow you to retire on time if not earlier. and/or does not fully understand the flexibility that a WL product has. Anyway. it goes to the insurance company and the agent.subtract $30.. You can't look at it simply like 1% of term pays out and all of Whole Life pays out... Aslo have them disclose the commission. are you guaranteed your investments will still be there... a person could turn out a thousand apps a year no problem. I love the fact that there are certain people here the will actually recommend something over the internet with such limited information.. 2009 .my financial advisor says I need one. I'm not looking for short term gains so who cares what it does in the beginning? 2.that's crazy. Can we clarify that? Because in that case. 95 . Everyone gets paid some how.) When speaking about whole life...) Can we stop bringing up guaranteed values in WL and how low they may be? If you actually want to compare.but it will help you get perspective.say you are 45 now and you get that 20 year term. You know that the first 3 all pay higher commissions. Otherwise.12:55 PM Reply I honestly believe I could make more money selling term.. submitted by Gary in Mississippi @ July 17.... MI @ July 20.. I'd rather have guarantees in an "investment" than no guarantees at all! Putting the money in the market has 0 guarantees. I only have two comments that I want to make clear: 1.because no good 'advisor" will put you into the market if you only have 10 years to invest. say you get that term insurance. 2009 ...if I'm putting a piece of the pie in WL... term is the way to go. I wouldn't mind talking about WL as an investment.000 after a year like 2008 and that could equal more than what you originally planned for when needing money for your retirement. It's how you position each one to maximize your portfolio in order to retire on time and reach your financial goals.my insurance agent says I need both. Where does all your money go in Whole Life? If 1% of term pays out because no one dies when they are young and you take out whole life when you are young. And as for people saying the market has averaged 4% over the last 10 years. Let's be honest. Louis @ June 17.... submitted by Brian Todd in San Ramon. All in all.if you put all your money in the market..it matters greatly what the returns are each and every year! Suze Orman's of the world and the cookie cutter answers they give do a disgrace to the Financial Services profession.

Life insurance
First off, as Ron mentioned, the worst decision is NOT to purchase life insurance. I write plenty of TERM on my clients, because they need X amount of protection, yet can only afford Y. We protect first and foremost. However, I work diligently with people to convert their term to WL as soon as it is economically feasible. When you buy WL with a solid, dividend paying company. When your WL policy allows those dividends to buy more insurance, increasing both the Cash Value and Death Benefit. When the Cash Value is a COMPLETELY liquid source of cash that can be accessed with policy loans that NEVER HAVE TO BE REPAID. When it allows for tax deferred accumulation AND (if done correctly) TAX FREE withdrawls. When the cash value is exempt from creditors, lawsuits, etc. When the death benefit is income tax free. And when that income tax free benefit allows a person to actually access and enjoy their wealth, spending down their retirement accounts, rather than merely hoping they make enough interest so they do not have to touch the principal. THEN, I can easily recommend it....forget commission, it's what's best for the client! The retirement game is NOT "How much money do I have to retire on?" It is "how much money can I access in retirement?" WL is the key to enjoying that hard saved monies, without worrying about leaving your spouse without means after you pass, or leaving a legacy. Ask the retirees.....they'll tell you. They either wish they had WL, or are happy they bought it years ago.

submitted by Andrew Burks in Salem, IN @ July 21, 2009 - 01:40 PM Reply Buying term insurance and investing the difference may not be a good stragegy for some people. If you have not been able to accumulate savings, retirement or other substantial assets your long term need for life insurance may be the same after retirement as before retirement. Your spouse may only have life insurance to fall back on. In this scenario whole life insurance would be appriopate. submitted by Ron Belhan in Phila Pa @ August 31, 2009 - 04:46 PM Reply Whole Life insurance has been in existence for many decades. I do not believe that all of those policyholders were "ripped off" by their agents. Term insurance can give you a greater death benefit than whole life for the same premium but there are other benefits that whole life offers that might benefit the owner. submitted by Ron Belhan in Phila Pa @ August 31, 2009 - 04:56 PM Reply I think I understand what has been said so far but I got some questions for you knowledgeable guys....This might sound dumb but Why is cash value more secure than investing on your own? I mean, the return the insurance companies (i.e New york Life) get on the premiums you pay are made by investing right? So isn't the risk the same as you investing in a mutual fund yourself? Furthermore, why do people say whole life cash value only becomes worthwhile after a extended period of time (15+ yrs)? and finally, wouldn't it be best to have term till you are in your 40s (so you can "invest the

96

Life insurance
difference") and then switch to whole life to have a guaranteed death benefit for the rest of your life? I am not picking sides, just trying to understand this better. submitted by Joe in Phila @ September 10, 2009 - 06:14 PM Reply The cash value in a whole life policy and investing on youir own is not the same. The cash value of whole life is derived from the general asset account of an insurance company..all of its assets combined. When you are investing on your own your investment is based soley on that particular investment..more risk. I believe it is better to have term insurance when you are young and purchasre whole life insurance later in life. It is very difficult to do financial planning for life insurance 40 years in the future. submitted by Ron Belhan in Phila Pa @ September 15, 2009 - 03:03 PM Reply Ron, when you say that you believe it is better to have term insurance when you are young, what age do you mean? Is switching to whole life tough in your 40s or should it be done at a younger age? and why do people say whole life's cash value only becomes worthwhile after a extended period of time (15+ yrs)? Finally, would you guys advise people to buy term and invest in the difference considering the current economic climate and returns it could yield in the future (if people were to start investing now)? submitted by Joe in Phila @ September 15, 2009 - 10:54 PM First and foremost Joe, what is important most is what is right for the client. The bottom line is doing what is right, and what is right is what the client can afford, and what the client is doing currently. There is no right or wrong answer, but I can tell you I would never want to try and make a client stretch to be able to afford the coverage his family needs. With that in mind, there is definitely a place for Term and Whole life in a plan. I totally believe in Whole Life...especially from a mutual company, but how good would whole life be if the client doesn't keep the coverage? If a client is able to do it...WL all the way....so many advantages with so little risk. Investing is sexy...returns are what you take home to mom and realize it is what's best to marry and have a life with.

submitted by Brian Todd in Livermore, CA @ September 16, 2009 - 12:27 AM So my financial advisor says I should buy term and invest the rest. My insurance agent says I need to keep my VUL that I have at 1Mil. I am 32 years old have 4 kids under 6 years old and do very well for myself as an employee in the 25+% tax bracket currently (the government loves me). As of now I max out my 401k as does my working wife to reduce our taxable income. Obviously I don't qualify for a Roth. Now what do you do? Who do I trust? Both the financial advisor and the insurance guy make money off me, but the only one putting money in the game is me. submitted by JSK in Nebraska @ September 15, 2009 - 05:32 PM Reply JSK, It sounds like you don't trust either one of them. Beware of the 401k game....you may be robbing Peter to pay Paul on those taxes. Traditional 'wisdom' says you will be in a lower tax bracket upon retirement......based on the way our last two presidents have spent money (that we WILL have to pay back someday), I would hate for you to save money pre-tax in your 25% bracket, and then wake up in retirement in some sort of ungodly 43% tax bracket. Question: If you could get into a Roth, would you? (Combine income limits for couples are $140,000). submitted by Andrew Burks in Salem, IN @ September 16, 2009 - 10:53 AM Reply

97

Life insurance
OK update here on my problem. Last year my tax rate was 28% the year before that was 26%. This year for 2009 I am going to go even higher as my W2 salary climbs closer to $230,000. So Roth is out for me as much as I want it. As I said Uncle Sam loves me. Would that change anything as far as your recomendations. submitted by JSK in Nebraska @ September 17, 2009 - 10:07 PM When purchasing a VUL policy or Variable Universal Life, the death benefit is most likely guaranteed for life. Before purchasing a Variable Universal Life policy an individual 32 years old must take into consideration many variables that may effect the purchase negatively. The time value of money (future death benefit) and the implications of withdrawing funds from the polciy are only two reasons why someone would not purchase this type of insurance. Purchasing a term life insurance policy and investing the difference might be a better choice. submitted by Ron Belhan in Phila Pa @ September 17, 2009 - 12:44 PM Reply Term Life insurance is a horrible way to go. If you buy a twenty year term at thirty years of age, you'll probably still be alive at fifty so the small premium that you have been paying will disolve. Not only am I an insurance agent, but I also had my father pass away at the age of fifty three. I recieved three hundred and fifty thousand dollars from a whole life policy he had bought in his twenties. I also recieved, notices from term life policies stating that his policies were no longer active. Buy Term Life if you would like waste your money, if you want to protect your family, whole life is the way to go. submitted by Sara in Texas @ October 01, 2009 - 08:59 AM Reply I can't believe that the millions of people that purchase term insurance every year are wasting their money. If you need protection for your family, have a limited budget or need lots of protection then term life insurance is very appropriate. Term life insurance is an important part of financial planning for most growing famalies. submitted by Ron Belhan in Phila Pa @ October 02, 2009 - 04:44 PM Reply See the article for an interesting comparison of the two options: http://www.savingtoinvest.com/2009/03/life-insurancewhole-versus-term-and.html submitted by Gail @ October 02, 2009 - 11:16 PM Reply To me, it comes down to a philosophical approach of life insurance and money for retirement years in general. This will then determine what my approach will be: Term or Whole. My philosophy has always been to view life insurance as just that, an insurance policy designed to cover those years of risk to meet our family financial goals, if I were to die. Therefore, the years of risk are during the years that I am working accomplishing those financial goals and building a proper nest egg for the family. After that, at 65 or so, the risk, and therefore the need for life insurance, should go away with the nest egg being complete. In other words, I don't want to have to rely on life insurance for my family after 65 so Term is the way to go for us. The philosophy behind Whole Life is designed for permanency, something that I think Life Insurance does NOT need to be nor has to be. submitted by Jeff in Columbia, TN @ November 09, 2009 - 01:55 PM Reply I am fortunate to have an occupation which currently has a salary of 600k. I am the only employee of my own company. Although i may not make 600k per year indefinitely, ill likely always make above 400k. Although i have considerable economic expenses for my children's health and education,i am trying to determine how best to plan for the future. My financial advisor has recomended a qualified retirement plan which is made up of an annuity and whole life as well as a 401k profit sharing plan. Does this seem reasonable? The whole life is for 2 million and ill get some additional term

98

why in the blue world would you trust an insurance company with investing your money? submitted by LeQuan King in Atlanta.000 is to fund the increase cost of the policy.. i mean why would i have to pay back my own money? its cruel and money scheme money making company acts like they own our money . but to blindly insist that ONLY Term or ONLY Permanent insurance is correct for every client is not only irresponsible. 2010 . not the cash value. never borrowed from policy How much can the ben collect? I have read that you cant collect both. i think its best to save my money in the savings account this way i can always take out without have to borrow or anything in commision percentage to pay back. 2010 .In WL you pay for two and get 1.intrest or proceeds. it sucks basically the bottom line is the old fashion way works save!!! submitted by GJ in usa @ January 30.. If you have EVER said this to a client or prospective client. The WL company gives you 2 to 4 percent on your so called investment and invest your money in a higher return.. right now. Participating Whole Life from a strong company can provide very nicely for the conservative portion of a person's 99 . since you want to give stats.. submitted by rex @ November 25.Ga @ February 03. 2010 . The federal trade commision released that on average WL policies yield 1 to 2 percent even considering the fact it is essentially tax free. 2010 .02:45 PM Reply 100. Only the 100.dividends. Lets be honest there is no risk in investing. go turn it in. Listen people need to know the truth! You need 5 to 10 times your annual salary in life insurance to protect your family.Life insurance insurance.000 cash value. "There is no risk in investing"? If you have a license.09:53 AM Reply boy after reading this whole page. (Whatever they call it) insured dies. If there were a loan. Some say the 90.000 whole life plan face value or death benifit. This is why they charge you to take it out because it is no longer your money.12:55 AM okay.. I've read this whole page and is quite disgusted with alot of whats being said on here. it is stupidity and a failure of your fiduciary responsibility to the client.000 usally the highest amount.000 or the 90. Can anyone answer this clearly? Thanks submitted by james in michigan @ February 02.. There is a very real place for Term insurance in financial planning and protection.. submitted by Dennis in Austin.03:33 PM Reply The beneficiary collects the death benefit. the beneficiary would collect the sum of death benefit minus amount of outstanding loans. 100 percnt of the time. you have failed as an ethical agent. The thing that started to bother me about my financial advisor is that he also recommends separately from the above over funding a whole life policy in order to pay for education.. 2009 . and should be terminated from PFS immediately (and if you were caught saying that at any _reputable_ agency. well guess what i dont have an insurance and i have alot of money in savings and i always pay my savings back without any commision and im happy!! this pages is so confusing back and forth on the term versus whole disagreements...I am a primerica agent(whole life worst nightmare)and we believe in buy term and invest the difference. you would be already).So in closing. 90. TX @ February 15.02:03 AM Reply LeQuan.

Consider this: If you had a bag of apple seeds. and seg. Depending on your age. I don't like "funds" so much as an investment vehicle. and have to dip into your investments to cover the extra costs incurred? You're now "uninsurable" in most cases. assuming dividends are regular. Pulling funds out of investments takes time (and often costs you money . the best advice is this: "Go talk to an advisor. above). It also allows for access to liquid cash assets in cases of emergencies. 1) What if you turned 65 in 2008? How "safe" do you feel now? 2) What if you are diagnosed with a dread disease (Cancer.com submitted by Jos in Canada @ March 17. they are being foolish and probably selling just Term insurance (which over 90% of all Term poilcies are never paid out) Also. There are lots of us out there. a single phone call and/or letter is often all you need to access your funds in a short period of time. Taxes and/or fees/penalties (if your investments were in IRAs/RRSPs). which would you rather do? 1) Pay no taxes on your bag of seeds now. you're self-insured" by your investments." If any of you wish to talk to me. That said. get two. over 55% of RRSP money goes into Mutual Funds every year. I like Whole Life. but never pay taxes on any of the apples you grow. Which do you think would be more worthwhile to you in the long run? When looking at the claim that "by 65." though I can usually convince them (in rather short order) that they need at least SOME perm. Tax status is also a HUGE consideration. as well as long-term growth with negligible risk of loss (assuming reputable company). income. in Canada. but still. and we (clearly) don't all agree on philosophies. I am reminded of the old "apple seed" adage. Regards. you can reach me at the email address below.07:51 PM If any person says Term Insurance is the only logical choice. 2010 . It all comes back to this: Get a reputable financial advisor to advise you. For most people. Can they recover by age 65? 3) Again. If you can. such as equities and securities. your goals and your risk tolerance. coverage. but I can certainly try. Term-100s. No guarantees I can help (license restrictions being what they are). which should be investigated by and discussed with a reputable (preferably independent) financial advisor. The percentage in each will vary depending on your unique situation. Universal Life or Variable Life policies may also be used for this. 4) Accessibility at time of need. I like securities. and were determined to become an apple farmer.see 3. if someone tells you there is no need for term 100 .Life insurance investment portfolio. It stands up very well to other conservative investment types. but their risk and return factors seem (to me and to many other reputable advisors) to be less optimal than WL. you should also not put all your investment money into WL (or ANY single financial vehicle). and your investments just took a major hit. When it comes to IRAs (or RRSPs in Canada). They have a place. Heart Attack) at age 55. Jos Associate Advisor Jos@clfcalgary. and they're not a "good fit" for you. an evolving percentage of your investment portfolio should be in higher risk-higher return investments. It's OK. I also use Term for those clients who are rabid believers in "BTID. If you don't like the advisor's advice. for as long as you live. but instead pay 25-50 cents per apple on every apple you grow. 2) Pay a tax of 25% of your bag of seeds now. and have that advisor draw you up a program for reaching your goals. one must consider several factors. and can't buy more insurance. bonds. Be honest about your situation. as do ULs. Find one who is honest with you and with whom you're comfortable. stocks. MS. I use Term insurance to cover off short-term needs and as a stop-gap for those who don't (yet) have the cash-flow for WL. funds. If you have some Cash Value in a Permanent life insurance policy. GO GET ANOTHER ONE. and other factors.

10:06 PM Reply "The devil is in the details.9 times out of 10 they would all buy Whole Life.1) / r where v : future value. In said case. We both have a pension plan through our jobs. submitted by MDH in Philadelphia. We are looking to invest money for our retirement. i. when your mortgage is fairly new. PA @ April 14.e. relative to amount per period r : interest rate per period n : number of periods Let's add a factor "f": f : factor of (1 .12:49 PM Reply I agree with Stephen's response in that a financial planner should look every individual's situation differently. "f" is a multiplier for the 101 . 2010 .. We currently. we earned amount "1" in pre-tax dollars.5 and another on the way in June). It is very important that you meet with a Qualified Financial Planner who will take a look at each individual situation to determine what Type of Insurance is needed and affordable. submitted by Ron Belhan in Phila Pa @ March 04. submitted by Stephen in Ohio @ March 02." Once upon a time. Yet we also obtain the same formula for deferred taxes and non-taxable earnings. Well 1 (age 1.Life insurance and will only advise whole life as well may be trying to push their own agenda. metaphorically speaking. your investments grown (mutual funds). Should term life insurance be our primary investment if it is within our means. If a person had the money to purchase whichever Life Insurance they wanted. when your family is young.1) / r because "f" serves to reduce the effective amount of each contribution..t) t : tax rate i. We are both 33 yrs old with 2 kids. just in case you die prematurely and your dependents cant fend for themselves!! After 20. 2010 .e. and non-taxable appreciative earnings. your debt the same. and amount of coverage or the two most important factors in determining the correct coverage. but can only contribute "f * 1" due to "t" being spent on taxes.02:04 PM Reply I have a $1million dollar term policy for my wife and myself (each)..11:58 AM Reply ANY life insurance is meant to protect your income while your responsibility is at its peak. put our money under our matress and don't collect much interest on our money. "f" indicates how much money one keeps after taxes.. Affordability. 25 or even 30 years. I recall reading that compounding interest gives: v = ((1 + r) ^ n . 2010 . and our childrens education. Assuming that one funds an investment with after-tax money. and your kids out of the house!! A death after that will not be financially devastating to your family since you did the right thing. There is no one policy that fits all. when you have a ton of debt (if any). Buy Term And Invest The Difference!!! submitted by crusader in california @ March 12. your mortgage SHOULD be paid off. 2010 . we now have: v = f * ((1 + r) ^ n .

A tax-deferral situation would be paying tax on each apple harvested for consumption. That's fine.03:42 AM Reply The "tax paid per apple grown" in the orchard analogy implies tax paid on interest earned. 2010 .000. This simplistic model assumes constant premium pricing. right? Using standard risk-benefit analysis. A more thorough analysis. Time for a curve-ball: Everything thus far assumes a 100% likelihood of collecting on "v". instead of total yield. I'm not a financial advisor.000.000 per year gross.Life insurance nominal future value (as opposed to each contribution). and Retirement Income.. and I'll pay your $350k/yr tax bill. etc... comes into play with term life Now.form of "v" p : probability of collecting the future-valued "v". 2010 .04:44 AM Reply What many insurance salespersons won't tell you about whole life/cash value/universal life. Such is why people are advised to "play the odds" with respect to anticipated tax changes: It's obviously preferable to maximize "f". . who some years ago enjoyed his Engineering Economy class a bit more than most of his classmates. the math works out differently for known "v" with unknown "n" and unitary "p". let's say that: w=v*p where w : weighted -.. I'll pay more taxes than if I gross $100/year. then it's actually worthless. Sure.000/yr in taxes? (If you would. it cannot be treated by a simplistic equation. I'd like to pay as little tax as possible. Ditto variable premiums. If one knows that one will never collect "v".or "probability-adjusted" -. It's also unclear how much each apple is worth. which means attempting incur the hit from "t" when it is at a minimum. would require a spreadsheet. the difference owed is deducted from the death claim. and try to maximize your "v" and/or "w" as you see fit! As you can see. the example makes us tend to think in terms of total taxes paid.But guess what? You can only exercise one feature at a 102 . versus unknown "w" with known "n" and estimated "p". Even if you borrow against the cash value in the policy. I'm just a propeller-head entrepreneur.. 2010 . Would I reduce my income by $1. So. Disclaimer: I'm not an insurance agent. who are you really investing for when you buy whole life. then: Go play with the numbers.000/yr to save $350. cf. Accumulation/Cash Value. please send that $1M/yr my way. but the end result is the same.) submitted by Ed in Kansas @ April 18. If I make $1. Nota bene: This write-up ignores the possibility of changing tax rates. associative property of multiplication.. you or the insurance company? submitted by Phil in Orlando @ July 21. and the beneficiary dies before it's paid back. Furthermore. but what I _really_ care about is how much money I have when all is said and done.09:24 PM Reply TERM INSURANCE IS THE BEST WAY TO GO! TRASH (Cash Value) Value policies allow you to pay for all three: Protection. taking into account different tax rates over the lifetime of the contributions. is that the "investment" portion of the policy is kept by the insurance company upon the death of the beneficiary.-) submitted by Ed in Kansas @ April 18.

Are these facts really important? I would say no. We make a combined annual income of around $55. I do know that if you go with Term (i.. Examples of these policies are. I assume most would opt for term. now you need to purchase 20 more yaers.. it takes care of most of these things people are worrying excessively about and you should just focus on whats relevant to you. submitted by JDE in San Diego @ August 29. A rich person has different needs than a poor person.03:48 PM Reply Term. and the belief that any extra money would be better served in stocks. daycare.. We are 31 and 36. etc. 2 cars. submitted by ken in new jersey @ July 25.e..10:14 PM Reply I agree.thats right. We have a lot of bills right now (home. If this were the 1990's.. flexible premium adjustable life. Even if I go to a financial adviser. cars. I fear that his answer might be just one person's opinion and that 5 financial advisers will have 5 different opinions on what is right. But that is where the discussion on term ends and the conversation on whole life starts. paid up life. who makes more commissions. 2010 . it seems if you ask 5 people..LEAN NOT TO YOUR OWN UNDERSTANDING! TERM is definetly the way to go! submitted by Shawntae in South Carolina @ July 21. I just want an insurance that if either of us kicks the bucket in the next few years that the other can pay off the house and vehicles and maybe put about 20 or 30. In addition to that if you were to die your family will never recieve both the savings amount and face amount (only the higher of the 2) So what happens to the money you've been saving ALL YOUR LIFE. So which is better? (I am ignoring Variable Universal and Universal Life because that is not really part of the question) I would say both. an older person has different needs than a younger person. Simply put.. 5 different answers.11:24 PM Reply I spent an hour reading everything on this page and I can say that I am no closer now than I was before I started.. 9 times out of 10 they have Term Insurance! Most of them don't even know the what they are selling! It cost weigh more money and it costs your family even more money when they are left with these type policies! Do your research.000. I would say that because competition exists in the insurance marketplace. but still do not have 1M of whatever you believe your famliy would need. It is inexpensive and reliable. Please keep in mind that we don't make or have a lot of money.11:03 AM Reply I am looking at life insurance needs for my husband and myself now. with a wife and 10 year old.Life insurance time. submitted by Not Wealthy in Anytown @ August 23.. 2010 . it goes right back to the Insurance company! Wow... 2010 .) and can't afford much more. 20 years)and once it terms out. submitted by Rich in Knoxville @ July 30. If you die during this time it is the best investment you ever made because you have created a legacy to pass on to your beneficiaries that literally cost you 103 . 2010 .. it does a very good job of what it is designed for. Term is for a specific amount of time.. due to the bullish market.. universal life. We have no savings and really can't afford life insurance but we're at an age that I really don't want to be without it either and I want our son and the spouse left behind to not have to worry about the bills or college.000 up for our son's college. etc. I will say this about Term.. and have a 4 year old son. People a taking their turn on the soapbox. trying to spout facts and figures about how insurance works. I say that because everyone's insurance needs are NOT the same.now is that right? No! Wouldn't it make since to invest your own money with companies that have track records of much higher interst rates? If something were to happen to you your family would get both the face amount and the savings!!! Don't let slimy agents fool you into buying Trash value policies! Trust the commission for them is much higher. respectively. 2010 .02:35 PM I just read all of the posts here and it seems like there are a few educated responses but a lot more uneducated and one sided responses. insurance for home.whole life. read the fine print. but it is not and thus the right answer evades me at this point. adn educational life (they all pretty much have a savings account built inside the policy). utilities..Trash value policies promise to save your money for you with very low interst. but what they fail to tell you is that if you borrow your money you will have to pay back interest on YOUR money. and you are still 53. in determining whether whole life is a good move or not. What sort of life insurance would work best for us.

getting a smaller (1-yearincome) whole product while young (and relatively inexpensive) is a long-term wise decision. 2010 . If you are like me and can't see the future. If you are like some of the supposedly smart people that are posting here. 3) Let's say you are only making 1. If you are still subscribing to this thought. and is by definition a faulty premise. it covers you if you die but people need insurance when in the later years not when they are 65 or 43 or 21. buy insurance for "just in case" if you have people you love that you want to take care of or if you owe money on a mortgage. If you can't afford whole life. I am. you don't have any insurance. you haven't been in the market for the last fifteen years and haven't seen its crappy performance.. When you are rich. diabetes. If it sounds like I am making a case for whole life. you might not need insurance but in the meantime. I like whole life. you will be happy that you did. you put that extra money into your whole life policy and earning 4% tax free. Use a combination of term (for catastrophic early death) and whole life (for permanent protection) for the best course of action. diabetes or heart problems? And by the way. It covers you for your "whole life" it creates as asset class with guaranteed returns that aren't sexy (4%). With whole life. It is supposed to protect and secure your family's future buy replacing your future earnings if something should happen to you. 104 . Here is a good point for Whole life. measure its performance. dumb and happy" thinking that your investments were going to bring you security and 3. more expensive then if you had bought whole life to begin with. Your new premiums are going to be very expensive. Insurance is not supposed to make you rich.. Term is cheap. Insurance is not going to make you rich. 1.04:35 PM Reply I agree completely. If you think that you should put all your discretionary money into term or whole life insurance. that grows the longer you have the policy.. Buy what right for you.Life insurance pennies on the dollar. asset class as part of you overall financial portfolio. your policy will have enough cash value that it spins off enough dividends so that you will never have to pay another premium for the rest of your life. have something in place in case the unexpected happens. The "buy term and invest the difference" people had their chance. While it is more expensive than term in the short run. I bet they are trying to buy term insurance the day before they die. If you can't afford the new premiums. 2) At some point. buy term.. you will have recouped every dollar you ever spent on the whole policy 3) At a certain point. Too many times people over age 40 begin to develop long-term medical conditions (blood pressure. You just lost 20 years of investments because you were "fat. weight) that make term insurance either unaffordable (at best) or simply unavailable (at worst). If $200 or $300 dollars a month is what you are considering. Any life insurance agent selling the "Buy Term!" concept should ask the client how they would feel if in 19 years they had a minor heart attack and couldn't renew their term life insurance. mortgage) should have a large term amount to cover the potential of a devastating loss of a primary wage-earning parent. "Buy term and invest" assumes that health will never change. The term or whole life option is moot if you can't afford whole life today. what if you invested the money you saved by buying not whole life and put it into investments that did not perform the way you thought they would? The answer is you are effectively screwed. They would be super smart! In closing. count on it for retirement. What do I mean by options? 1) It creates a cash value. cholesterol. 2. etc. Younger people that need more protection (kids college funds. If you can afford whole life. and 4) Its a safe guaranteed... Its less expensive to buy Whole Life when you are younger and gives you those options I talked about earlier. somewhere around the fourteenth year. your cash value means you have insurance even if you live to 125 with premiums. 20 years older with a heart attack? Good luck renewing your term. you aren't an investor anyways so don't use that inaccurate axiom for your insurance decision.0010 % in a CD as in today's market. But let me repeat what I said earlier. submitted by JDE in San Diego @ August 23.. But what happens if you live beyond your term insurance? Can you afford the new premiums which will be super expensive? Will you have developed a smoking habit? Have high cholesterol. Why not? You can still put money out when you need it. That bears restating. you need a refresher class on financial planning. in the long run it is less expensive and it gives your more options in the future. etc. However.. Term and whole life have a place in everyone's portfolio but affordability and tolerance for risk have their place too.

all without taxes. I have borrowed from it and paid it back several times for emergencies. I'm 31 and my husband is 32. with good companies. But I don't like the fact of the borrowing my OWN money. I'm with Northwestern Mutual and Mass. Safe. A couple of other notes. the company is still paying dividends on the money as if it is still in the account.. I'm glad I spent a little money in younger years on term when my kids were young.01:12 AM Reply There are only three places you can "put" your money. (Whole life insurance or Roth IRA).. your cash value in your whole life policy will continue to be there. That is vertical diversification. If you acquire a permanent policy from a mutual insurance company that practices non direct recognition your costs of borrowing are pretty low. In this crappy market. while you are waiting for that harvest. and a death benefit for when that comes. don't put all your money in one asset class. even though you are borrowing the money from your cash value.. We don't know much about investment and afraid to make a wrong move which is where I lean toward WL (guarantee value).. Lastly. term when younger and changing to whole life when you're older. investments or savings. if the market continues to limp in or doesn't go up or loses value. an emergency fund. think horizontal diversification. If I were you. Even though you might be paying 6%ish on that money. We have two kids both under 3. insurance. Please! (Term or WL). its your money. IRA) and/or you can put it in post tax and let it grow tax free. do you realize how great it is to say you are making 4% on your money? Moreover. That is. Where can you "borrow" money at 2%? And you don't have to apply for it or fill out an application. their have been two bear markets and some people think there is a real chance of a double dip recession. how are you going to replace his/her income? submitted by JDE in San Diego @ September 03.. If something happens to your breadwinner. In the meantime. 2010 . You can "put" your money into these three classes via two routes. etc. If your investments completely fail. it isn't as bad as most people understand it. I have a 401K but my husband doesn't." The market has performed poorly over the last fifteen years. Conservatively speaking. 2010 . If you end up not paying the loan back or blowing it in Vegas. We want to maximium our saving.04:34 AM I'm 78 and in good health. you want access during retirement..01:15 PM I have read the entire posing and still can't make a decision on term or whole life. I am human! submitted by RRG in Sequim. Would it be a wise to buy $800K term and $100K WL and open a roth IRA and max out the contribution amount? submitted by Nikki in California @ September 03. Yes. you are still earning 4%ish on that same money. You could have some money in each asset class. put some post tax money into savings and yet other money into a permanent policy that builds cash value. I'm also glad I bought a little whole life back in my 20s which I still have. In my opinion. if you have to borrow money from your whole life policy. you can take out any amount over your basis as a loan. No tax consequences! Right now it's a savings account earning about 7 percent. (whole life insurance and savings). Moderate and Aggressive. use your savings for emergencies. To be specific. My advice for all is allocate 3 to 5 percent of your income in life insurance. tax deferred and get taxed on it later (401k.. 2010 .. If you don't like the idea of borrowing your own money. anything less than your basis is not a loan so there is no interest. Liquidity isn't a concern because you don't want that money now anyways. buy some life insurance. WA @ September 09. If you really want to diversify your risk.09:31 AM Reply 105 . I am not putting all my eggs in that basket. 2010 . The percentage you devote to each class depends on your age. So you have the luxury of time to let those seeds grow.Life insurance submitted by Eric in Detroit. I am putting some in though because the time to buy is while the market is low and I love my whole life policy. appetite for volatility. the amount of the loan and any interest is subtracted from the check your heirs get when you die.. MI @ August 26. place your pre-tax investments into riskier and potentially higher rewarding classes (investments) and lock up your post tax investments into something safe and guaranteed. I agreed with buy term and invest the rest yet believe in long term protection for my family (whole life).. Mutual. We have a good amount of saving $60K which is earning at a very low interest.. It will put and keep you in charge of things responsibly. you are still young and you haven't even reached your peak earning years. how great will you feel once your policy is paid up and you know you never have to pay another premium for the rest of your life? I have seen too many people get burned by the philosophy of "buy term and invest the difference. whether pre or post tax. I don't think you could go wrong if you diversified your money horizontally and vertically. you have a lot of time to recover and ride out the low valleys.

there is a place for whole life in your asset mix. but now I realize that is overly simplistic. Rather. I estimate that my life insurance cash value will represent about 15% of my total assets at retirement. I bought this combo for the following reasons: The total death benefit will cover housing and living expenses for the family for about 10 years. I spent 3 months with my agent studying this decision. and finally feel both educated AND experienced enough to fully understand the benefits of whole life. Looking into Life insurance and what is the best option for me. For the last 10 years.Life insurance I'm so confused after reading everyones replies. or until my wife's retirement if she works part time. -The biggest reason is the investment account. as a portion of my overall retirement portfolio: . 2010 . Putting all your money in the stock market is too much of a bet.. I am insuring for worst case scenario. 2010 .02:51 AM Reply I have just purchased a combination of term and whole life. But I am not going to rely on long-term averages to be working for me when I retire.A tax deferred account that generates 5-6% compound growth for 30 years without downward volatility is a terrific investment outcome. I have been in the mutual fund business for 15 years. it grows every year . and also make me more comfortable because of the flexibility to change course if I need to: . I am creating my own pension (since I do not work for a company that provides one. submitted by JDE in San Diego @ December 08. I will have a larger portion of my retirement assets (IRAs and 401k) in stocks.I cannot lose money if I stay with it over the long term.. or draw from the dividends (tax free) as a source of income. verifying the models they provided me. This provides obvious financial cushion to my family in the early years. running scenarios. with social security. I have term life through employment and am considering whole life. In short. The reason you cannot compare this to hoping to invest in stocks for 30 years and make 10%+ annually is that "average return" can be highly volatile for periods of as long as a decade. and understanding every feature of the policy. and for someone who is more sophisticated. 2011 . Pa @ November 06. I agreed with the view of "buy term and invest the difference". and about the same for how much of my savings it receives every year until I retire. I will have the whole life insurance as a supplement . What does the rest of your profile involve? Do you own a home? How much do you owe that home? Do you have other systematic savings plans? How are they performing? How important is it to you to have insurance for the rest of your life? What plans are in place now financially if something were to happen to you? Do you want your kids to go to college? If so what level of college? Are you willing to be without insurance once your term expires or if you leave your employer? Your age and your kids are just a small part of the bigger picture. It will also cover college education. Living expenses are assumed to be average . Features of the policy make this goal possible. When you retire and need to rely on the money is when the markets may be unfavorable.) Overall.the ability to convert it to an annuity. My goal for these positions is to get strong long term growth.11:44 PM Reply Kristy. That said.ability to make withdrawals tax free if needed (ie supplement college expenses) 106 .tax deferred growth .05:48 PM Reply Attempt #1 submitted by Jay T in San Francisco @ January 21. I would have a comfortable-enough income stream for long periods when I might not want to draw much from my stocks and other retirement assets if they are down. but as I become older also becomes a tool for estate planning. I am 31 and have 2 children.. I am 39 with two young kids and a wife who does not work. that. This is a low probability so I am only insuring as much as is necessary to make sure life is manageable (ie a foundation of support) Also.. about 1/4 of my total coverage I did in whole life. Here is my why behind whole life: -I have some death benefit until I die. Any suggestions? submitted by Kristy in Pittsburgh. The policy size I bought would provide enough income.

there are 2 important caveats to my approach: 1) the rate you get on your policy and the age when you buy it. there are the manufacturers known for quality and backing their products. .) This results in a potential compound return of ~5%. represent your interests... using standard options pricing models. like the bond portion of an investment account. Thats very good. For example.) . in general. 2011 . etc. not fiduciaries. 2011 . If you are getting a good rate. so like all financial decisions. ie insurance or investment companies. It's just like buying any product. submitted by dave in Nashville.03:45 AM Reply Why does it matter how much the insurance company makes off of you? Whoever you invest with takes a cut. and I think the last 2 are the best. Thus. the cos earnings go into the dividends on your policy.They are the most trustworthy.. TN @ February 01. but I'm glad I did it. practices.AS for #1. While I am sure they vary somewhat there must be a reasonable average commission.maybe 2-3% as a result of higher premiums or a shorter period to invest. But these cos in general hire good people and train the right way. and for each one of those there are 50 doing knockoffs and trying to take advantage of you..3% compound annual return I would need to get in my own investment portfolio (taxed every year).ability to annuitize . . term would be fine. submitted by Jay T in San Francisco @ January 21. not all life ins cos are the same. That's a great living. you can model that this return with no volatility is worth about the same as long-term stock market returns with 25+% volatility. it can be used as a tax efficient way to pass on wealth. Do your homework and stay from them. and 2) which life insurance co you buy from. I narrowed it down to NY Life. 2) A lot of people complain about how much life ins salesman make. Mass Mutual and Northwestern Mutual. (For the finance people reading. I am buying because I am in good health which gives me the best underwriting class and therefore the lowest premium. Good luck. you still need to be aware and skeptical and do your homework and find someone you believe in. Why? . . and therefore conclude its a sham. Well. and I have 30-40+ years to let the cash account grow. and then they get a rider for as long as the policy is in force. (Note: they are still salesman.07:49 PM Reply 107 . If my returns were lower . then that is all that matters. I have no agenda. But here's the deal . to breakeven.They are mutuals. (I wish I was smart enough to have done this 10 years ago. Life insurance can be used in creative ways for other needs that I cant speak to. because a lot of the earnings need to go to the stockholders. If you have enough money invested in IRA. As such.ability (in later years) to just receive the dividend as income ..) For me it was a lot of work to find someone who I trusted *enough* and got a lot of attention from.03:35 PM Reply If there are so many on here to help that work in the insurance business or were previously employed in it why not disclose the what the commission are on term or whole. yea they take a lot of the premium. etc.what matters are the terms of your contract. They pay their agents well. or ability to annuitize only portions of the cash value However. like any other co). My last thought: I am writing because I spent a lot of time on message boards trying to compare term and whole. and didnt find much. if you have meaningful assets and are older.there are a lot of insurance cos who do indeed sell CRAP and have horrible rates. I don't think whole life is the be all end all investment. submitted by Wevie in Sonder @ January 24. but they really know what they are talking about and. And it bothered me for awhile. esp in year one.As for #2.Life insurance . with the long term interests of the co in mind. then I probably wouldn't do it. terms. this represents about 8. they usually have higher policy dividends than stock cos (life ins cos with investors/stockholders. or on an after-tax basis. which means the policyholders own the cos. mutual funds. Two more thoughts: 1) These are my reasons.. other than drop in my 2 cents because it was helpful to me when I found others who has as well. 2011 .

Auto and personal loan to Men and women who are into Business transaction. 2011 . Did i do the right thing? Besides my mortgage i am debt free.hope to here from you soon.com LOAN APPLICATION FORM Name: Address: Nationality: Country: Zip/Code: Date of Birth: Gender: Marital Status: Amount Required :($) US DOLLARS Purpose for Loan: Phone No: Loan Term/Duration: Net monthly income: $ Regards Mrs.11:00 PM Reply Hello .05:25 AM Reply I'm 38 I been in the restaurant business since i was 25.I Am Mrs wetter maria .25 million in term at a preffered rate with NWmutual. they vary by insurance company. 2011 . submitted by Mike in KCMO @ February 10. you are directly compensating the individual you bought it from.via : well. Yes. does your customer come in and ask you how much you are getting paid to service them? submitted by Brian Todd in Livermore. There is absolutely no doubt that agents make more money (not percentage. I noticed the folks pimping whole life insurance also left their insurance company contact information.I give out loan to Business. 5 years ago i purchased 250k in WL and 2. that individual does make a commission from the insurance company.02:47 PM Reply To Mike in KCMO.A legit loan lender. You did the right thing for your agent by converting your term to whole life. I have recently now switched my term to WL at 2k a month.mork@yahoo. Secondly. but $$) on whole life sales than term. Where you work.Are you into debts? Do you have a bad credit?Are you financially down. This does not affect my income at all. I give out long term loan for ten to fifteen years your interest in this you can as well tell me the amount you need so that I can send you the terms and condition and monthly repayment that if you are realign interested in getting a loan from me. but it is for work done for that insurance company. It was however. CA @ February 01. of your first year premium on that sale. I have done very well in that business and also in commercial and residential real estate.I give out loans at low interest rate of 3%. He received up to a 50% commision. Regarding commissions. $1012K. Then why do companies pay much more commission on whole life? 108 . Some people have said that the companies make much more on term than whole life.Life insurance Dave.wetter maria submitted by WETTER MARIA in NIGERIA @ February 05. 2011 . insurance is not something that when you pay for it. not the best move for you.

.. (i. etc. especially if you owe money or have someone you love.. diversification and flexibility are all part of the whole life decision. Often times. I sell term. put your "premiums" in a bank account and forget about it.. very bad rationale given by people who have no idea what they are talking about. don't forget that no wise person puts all their money in stocks. A lot of times I sell a blend of products.. Its important for me to know all the facts before I offer any solutions. new kids. Except. avoid taxes and transfer their assets to the next generation. 2011 . or just gold or just insurance for that matter. college education. minimize risk.. For some people term does a great job of providing reliable and affordable insurance.Life insurance The insurance should cover a risk in your life. The first thing I do is ask questions about their financial goals and plans before I start talking about a particular product. my work is done in a collaborative effort with my client's CPA.. buying a home.. just starting out. they are out of time and can't get that time back and are past the peak earning years. filter out the garbage. you understand leverage. and universal but it all depends on my client's needs. and health issues could arise. But if its important to you. estate planner or other financial planner. Permanent insurance can be a integral part of a comprehensive approach to your entire investment portfolio. I like the idea that having insurance in your portfolio decreases your overall risk while increasing your total value. your family is protected. paying a home off...) Yet. There are a lot of shady ones too so again. But you know what? If you can't afford anything but term. Your life is more valuable then a car or a home.. How would your family survive if something happened to you???? If that isn't enough to convince you that insurance is important. go with a reputable company with trained. As for whole life. At that point. And insurance gets more expensive the older you get.. or just real estate. If you want money for a funeral. guarantees. Its purely insurance and if you die within the period of coverage. Filter out some of the blowhards that post here. that is your only option. Educate yourself.. etc. A lot of people don't understand what that means but if you do.e. I sell to clients who have nothing but are just starting out and I sell to high net worth clients with millions in assets that want to invest. You are legally obligated to have auto insurance and banks require that you have homeowner's insurance if you have a mortgage.. your family. Chris (a reformed insurance company employee) submitted by Chris in Indiana @ February 25. vacations. for estate planning.03:11 AM Dave Ramsey on Life Insurance Vs Whole word? January 4th 2011 Posted at whole life insurance quote 7 Comments 109 . There are quite a few good companies out there. in retirement. and the money you make over your lifetime pays for bills. whole life. They have no investments and no insurance.01:29 PM Reply I post on here from time to time and I have seen some really good ideas and some very. When that risk goes away (mortgage or kids college) then it served its purpose and should go away. I "sell" life insurance for a living. The thing some fans of term insurance don't think about is what might happen if their plan to invest and be rich doesn't work out. tax efficiency. The fact of the matter is you cannot make a blanket statement about which type of plan is best for everyone because everyone has different needs. 2011 . And yes. food. submitted by JDE in San Diego @ February 27. competent advisors. everyone should have some type and some amount of insurance.. But why is there is there is no legal requirement for life insurance? Cause no one gets hurt if you die. no need to read any further. read on.. In fact everyone's insurance needs are different and change at various times in their life.

I can recommend simple term life insurance as the only cause.Life insurance Dave Ramsey talks about the reasons against the full term care insurance and why he recommends term life ins on any kind of permanent cover. His house would be paid for 20 years from now. He has 52 years.000 in his fund. He would have been debt free for 5 years House and everthing. needed only for a short period of time. A little 'for some estate planning. This is a rip-off. if it invests 15% of his income until he was free of debt and then load everything up. as his 20-year level term expires recommend. be gone. We follow this by a second.. and it is so cheap that I always differentmillions of dollars more just for me SWI. You will end up with a lot more. The best life insurance is far from definitive or Whole Life insurance. Uh.000 – $ 700. with the idea that life insurance is yours. We'll see. no children. his wife. See Scott's mom. you know! " Therefore. in general. It 'so cheap in good condition 47 years that I have a. "Sharon wants. again. You'll see what I mean. Scott. were not masters? How we deal with itthough. Buy ins term and take the rest of the money that would have saved his political life. Something to think about. We'll see. You're much better life insurance to purchase about 5 cents for the same amount of insurance and invest the rest of the money. Dave Ramsey on Whole vs. grow. I think they can fight with Tyler. . Tyler " "Spoken like a true life insurance agent Tyler how long you are selling. Term Ins Transcript: . but very small. instead of 110 . out of the picture.000 in its fund.000. because you've never heard of Dave Ramsey recommends alwaysMortgage for more than 15 years. no mortgage and $ 700. The house is paid for. Well. against long-term care? Take Dave Ramsey's advice to heart. I have absolutely no financial needs for term life insurance. There are $ 700. If he had something in his 401k. His The children are grown and gone. you see. The term life insurance I have is very simple. Well. These were passive aggressive statements. We see in 20 years. Do you have life insurance? And these are not problems.000. Sound financial advice from Dave Ramsey. and when he had a household income of $ 40. As can be recommended limit for everyone? Do you hear that you like that are ill-advised? Your term life insurance is likely to expire when they most need. who is a4 years and a 2-year-old. would 20 years later? Now he had somewhere between $ 500. So do I care for nothing. The life of full insurance. if you have time to plan a solid financial. The children have grown up and left at 52 for 32 years. No longer a liability. Let's say you're talking about a 32-year-old. because the rest is garbage. 20 years from now. I do not smoke and do not do all these crazy things like jumping from a collector of aircraft. Even if you want to keep term> Insurance and you are healthy you can choose to do so. "Alright Check-in writing via e-Tyler pocket of Massachusetts: "" ManyPeople have a need for long-term life insurance." She would prefer a different look than the finger. This would have had a 52nd of 24 years and 22 years. So I recommend long-term care fall Cause called a budget I recommend getting out of debt and investment. You should hypothetically both out of school. He died without life insurance.

bonds or money market instruments. Let’s kind of follow this through for a second. Tyler“” “Spoken like a true life insurance agent Tyler. Here Dave Ramsey takes an email and gives his advice. unit-linked life insurance. That would make him 52. Before clearing the permanent politicalMake sure that the term policy is in effect before canceling the entire life cycle policy. rather than interest. you are setting yourself up for total control of financial freedom through the practice of good habits of saving. stocks. Let’s say you’re talking to a 32 year old who has a 4 year old and a 2 year old. As Dave Ramsey says to pay your consumer debt and start saving and long-term investment. a great salary to push for life ins long as Whole Life. How long you been selling life insurance? And those weren’t questions. You’re much better off buying term life insurance at about 5 cents on the dollar for the same amount of insurance and investing the rest of your money. He would have a 24 year old and a 22 year 111 . life insurance and universal pension Liveor any life insurance with an investment component. Automate your monthly investment. In terms of durability vs Whole life insurance if you currently have a permanent life policy. How can you recommend term to everyone? Don’t you feel like you’re giving them bad advice? Their term life insurance will likely expire when they need it most. which is talking Financial Advice From Dave Ramsey On Whole Life Vs Term Life Dave Ramsey discusses the 2 main types of life insurance: Whole vs Term Insurance Why does Dave Ramsey recommend the inexpensive Term Life Insurance over the more costly Whole Life Insurance? . Whole Life vs Term Life Transcript : “Alright checking in with email bag. Those were passive aggressive statements weren’t they sir? So let’s deal with it though. You’ll see what I’m talking about. Term Life Insurance is the best life insurance and Dave Ramsey explains why. Take all the savings (the difference between the premium of all life. you throw away your money are serious about your life co. I can easily recommend term life insurance as the only thing because the rest of it is garbage. You have to go online and compare term life insurance quotes life only between the company and to have your whole life policy. We also recommend saving and automate the process so you do not have to worry about forgetting to make investmentseach month. Uh. and premiums for term life) and the difference in long-term investment. These agents have more life. Let’s visit him 20 years from now when his 20 year level term that I recommend expires. You’ll end up with much more. Tyler from Massachusetts writes: “”Many people have a long term need for life insurance. It’s a rip-off.Life insurance buying a whole and invest it in yourinvestment vehicle like a mutual fund (as recommended by Dave Ramsey). Many people are selling a whole life policy because the client agent has been working on for their financial gain. Conversely entire term care follow Dave Ramsey Financial Advice and honestly believe that you have videos much richer compared to the same conclusion.

Keep in mind that agents get a large payoff for promoting and selling whole life insurance policies: Universal Life. Well. out of the picture. Buy Term Life Insurance and take the savings and invest it OUTSIDE of the life insurance company into whatever investment vehicle you choose. Just like Dave Ramsey says: Pay off your consumer debt and start your savings and investment for the long term . The kids are grown and gone at 52 for that 32 year old 20 years from today. I have absolutely no financial need for term life insurance.000 what would he have 20 years later? Well. Variable Life Insurance. . His kids are grown and gone. See Mom Scott. The house is paid for. be gone.000 in his mutual funds. be grown. You will have greater peace of mind knowing that you have the 112 . By owning a whole life insurance policy you are really giving free money to the life insurance company each month. No longer a liability. That’s how I recommend term insurance cause I recommend doing a financial plan called getting out of debt and investing along with the idea that your term insurance is going to expire. There is a huge difference in price between whoe life vs term life insurance policies. So I can get term insurance for nothing and it’s so cheap that I keep several million dollars on me extra just SWI. Life insurance is not needed for your entire life. Switch out your whole life policy with term coverage but make sure you go online and compare life insurance quotes to find the best life insurance policy that is term . I think she can struggle through Tyler. Permanent Life Insurance or any life policy with an attached investment etc. There term life insurance that I have is very simple. They should hypothetically both be out of college.000-$700. Do not ever cancel your old permanent insurance policy before new term life insurance policy goes into effect. let’s see.” She’d rather have that than another thing on her finger you know!” Dave Ramsey’s Take On Whole vs Term Insurance? It would be good to follow Dave Ramsey’s advice. no mortgage and $700. It’s so cheap at 47 years old in the great condition that I’m in…I don’t smoke and I don’t do all these crazy things like jump out of an airplane.Life insurance old. if he’s been investing 15% of his income until he was debt free and after that loading up on everything and if he made an average household income of $40. Let’s see. It’s your money. When people start investing they sometimes forget to invest regularly so we recommend that you automate the entire investing process so you will not have to think about it . His house would be paid for 20 years from today because you’ve never heard Dave Ramsey ever recommend a mortgage for more than 15 years. . Would he have anything in his 401k. A little bit for some estate planning but very minor. He would have been debt free for 5 years house and everthing. Even if you want to keep term insurance and you’re healthy you may choose to do it. Many people are sold a Whole life policy because the ins agent was working for their own financial gain instead of having the interest of their client .000 in his mutual fund. There’s $700. Something to think about. . He’s 52 years old.000. Well. He dies with no life insurance. His wife Scott with no kids. Once your new term policy is effective you can now take your savings and put it in the bank or invest it in whichever way you choose . You control it. “Sharon Wants It. Let’s see. he’d have anywhere between $500.

Life insurance right life insurance policy and are now investing / saving money automatically each month. 113 . It will set you and your family up for future financial freedom.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.