Dave Ramsey Life Insurance Explained – Slams Whole Life
Here is how and why you should buy TERM LIFE Insurance!
Duration : 0:3:22
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Also, remember that …
Also, remember that 10% is an average, and that many people fall within a few standard deviations of that average. You also say the “stock market”, mutual funds, which I believe dave recommends, will have a lower potential return (but less risk) as MF at not entirely made up of stocks.
Also, remember when comparing MF/investments to Permanent insurance that you factor in the Death Benefit value, the Disability waiver, the ability of the dividend to pay the premium, and reliability.
You make a good …
You make a good case Carterreth. I wish more people on your side of the fence (The term all the time side) could explain things like you and show that they have actual knowledge of the subject. So, I thank you for that.
The stock market has averaged 10% since the great depression, but that also includes some peaks a valleys. If you need to pull money out at a bad time (like now and the near future) it can be rough.
Often selling their …
Often selling their product to those who should not have a Whole Life contact. The agents have to make a living even if their office does not suggest that they sell to such clientel.
95% of people are …
95% of people are NOT maxing how much they can invest tax deferred. So they should not even own a Whole Life Policy. That comes straight from my 3 part interview with Northwestern Mutual Life when they were recruiting me to come to work for them. They were honest that they compete with Mutual Funds if they are not tax deferred. Their stats say that 1 or 4 people is maxing their tax deferred investments. I have not seen that but they stay in business.
The stock market …
The stock market has averaged over 10% since 1929, so yes you should expect to
get better than a 10% return. Most people will earn that money tax deferred.
And yes, the wealthy are already maxing out what they can invest tax deferred
($417/mon per person AFTER 401K). Then and only then does a Whole Life Policy return come remotely close to the return someone would have on a Mutual Fund after it is taxed! There are still better options.
Remember bond519, ” …
Remember bond519, “claims paying ability, their capitalization, and their financial stability” relate to a companies ability to sell quality products.
Carterreth, if you think you can earn an average of 10% in the Market until your age 77, then go for it (but don’t be surprised if you fall short). Don’t forget volatility and taxes.
Ask yourselves, why do so many wealthy, knowledgeable, well informed people with much to lose, buy so much permanent life insurance?
Cash Value Life …
Cash Value Life insurance( Whole Life, Universal Life and Variable Life) are the worst rip off to ever hit the consumers in several countries. Dave Ramsey is right if you listen and learn his whole program of Insurance and Investments. There are other companies and Consumer advocates that have taught and still teach the same philosophies. Keep up the great work Dave!
The problem why …
The problem why some people as you say have had their buts handed to them is because they don’t fully learn and understand what Dave Ramsey has taught. Most people don’t want to do the whole plan. The rating of an insurance company has nothing to do with the type of insurance they sell. It has to do with their claims paying ability, their capitalization and their financial stability. It has nothing to do with the products they sell or how bad they are. Dave Ramsey is right on the money! Period.
at age 77 earning …
at age 77 earning 8% would grow to $1,261,000, at 10% would grow to $2,395,000, and at 12% would grow to $4,678,000. A long list of Mutual funds average over 10% and 12% for more than 30 years! BTW YOU BORROW THAT MONEY OUT AND MUST PAY IT BACK WITH WHOLE LIFE!! Yes, Whole Life is Junk as Dave says!
Have your ever seen …
Have your ever seen the return on Whole Lifes Cash Value?! Its HORRIBLE! Northwest Mutual offered me $4,023/ yr for $250,000 in coverage. At age 77 I MIGHT have $770,000 (non-guaranteed) in cash value. Buying term for $42 a month for $400,000 in coverage and investing the difference ($3,519 /year)
Dave’s advice is …
Dave’s advice is actually pretty bad. In Dave’s world, everything seems to work out perfectly (as if people don’t have ripples in their lives, nor markets have down turns or volatility). Many people who have followed Dave’s advice have had their es handed to them in the last six months.
Sadly, Dave bash’s NorthWestern Mutual, literally the highest rated company in the business (so says Stanard & Poors and friends). His descriptions/understanding of WL/CV insurance is rudimentary at best.
No problem. Dave …
No problem. Dave speaks the TRUTH!
I really appreciate …
I really appreciate you posting these videos of the tv show cause i am in Canada and i don’t get this channel so thank you very much
who is going to pay your estate taxes? The problem is all you so called financial adivsor think about accumulation, not retention. What are you financial adivsors going to call yourself after this economic crisis? I deal with clients who are uninsurable due to an illness and they are stuck with Term. I have clients who can receive a large amount of money from their cash value tax free. And remember the death benefit is usually tax free.
Its interesting how so many of you believe in term insurance. Yes I agree with you , you need term insurance but would you want it if you knew other alternatives. You would be ok living in a hut thats a need , but would you want to. You need to eat raw food , but would you want to.
Needs analysis is useless. Once our client understands how Whole Life Insurance can become the most powerfull wealth creation tool , they wont settle for anything less than the coverage of their full human live value.
Its interesting , they feel deceived after they have been undergoed “needs” analysis.
Once they understand , that they can leverage the full value of their death benefit the next day after the policy is in force. Theyle want more whole life insurance than it exists. For every premium you pay , say its a 10million dollar whole life policy and the premium is $8000 a month , it is like he is paying $8000 to be able to spend 10million dollars. I challenge anyone to calculate that rate of return.
Please feel free to contact me at andtennis05@yahoo.com , I would love to talk to each of you regarding your inquiries , also if you would like to open your eyes and see the other posibilities.
sincerely
Andy
sincerely
Andy