Dave Ramsey Life Insurance Explained - Slams Whole Life AGHHH

[aIprime1]

no market risk? 5% return? tax deferred build up? tax free withdrawal? Zero net cost loans? Self completes if you become disabled? Lawsuit and creditor protected in 43 states? tax free death benefit? No 591/2 rule on distributions? No RMDs? No contribution limits? And people say this is a bad product? Really? The truth be told it very well may be the best financial product you can own!!!

[jgilles85]

@Sternfag: No you idiot they all have surrender charges! Are you that fucking stupid? I have a Whole Life policy illustration I take out every time this subject comes up, just so I can look at the surreneder charges and laugh when posting to some moron like you!

[jgilles85]

Everyone check this out! There is an insurance agent that claims that Whole Life has no surrender charges. That's right insurancemike10 better known as IllegalMichelle claims that WL has no surrender charges. So after being exposed he hides behind another username and gets caught! The best part is that his friend Sternfag denys he did this even though I have the evidence to prove it to him. Remember that insurancemike10 and Sternfil are 2 chiken shit dickless no balls lousy excuse for agents!

[Sternfil]

@jgilles85 funny but i've checked and checked, there is simply no surrender charges to whole life. I think you are referring to Universal and Vul.

[jgilles85]

@insuracemike10; You're a fraud and an idiot! I kick your ass every single time!

dj

[jgilles85]

@insurancemike10 Who's to say you won't be part of the percentage that dies during the time in which term is needed? I bet you own a level term policy and you'll say you own whole life but you don't. If people all knew they would live for many years, then what would be the need for income protection?

[insurancemike10]

Lett's get one thing really straight, if insurance companies only sold term they'd make even higher profits as term onnly results in death claims less than 2% of the time. As for compensation, agents make lots selling term too. And from what I can tell the Cart guy is a Primerica agent, they sell VERY expensive term and charge 14% to pay monthly. Lots of compensation with them!!!

[probslpwtyormama]

@insurancemike10 poor baby mikey.

[carterreth]

They argue that there are approximately 1 in 4 people who need to invest beyond their IRA. I declined their offer. And I continued to meet with clients offering ONLY Term Life. It was interesting how many familes I sat down with who WERE NOT investing $417 into an IRA and still had a Whole Life Policy that the worlds largest seller of Whole Life had just explained to me they should not have sold. But a sales guy has got to make a living I suppose.

[carterreth]

Whole life companies have learned very well how to confuse the issue with smoke and mirrors. There is only some benefit to the wealthy to use the product. When I interviewed with the worlds largest whole life company, they explained that this was the case.

[carterreth]

And your Whole Life Sales Manager will NEVER explain this too any sales agent. Way too much in commissions to be earned. Dave is NOT the only person who professes this info.

When the difference in someone portfolio is $2,000,000 (that they should have had) but that the Whole Life company profitted (by investing YOUR MONEY) the sales rep stands to make a significant commission. That should be illegal!

[carterreth]

If the fact that the government gives an incentive to one (retirement account) and NOT the other (whole life) is not enough to prove what is best for a client it would be hard to justify any product.

[carterreth]

Some people are sold on the tax advantages AT THAT POINT of Whole LIfe.

But, yet Whole Life Insurance Sales People wil still sell they product to the 95% who do not benefit from the tax benefit offered by whole life that should not be used before the $5000 tax deferred they get from their retirement fund.

[carterreth]

The government DOES NOT allow for money to be put into a WHOLE LIFE POLICY pre-tax because it is proven to be a terrible investment. Whole Life is not illegal (as some suggest it should be) because there is still a wealthy 5% of the population that has already exhausted it tax free investment into a retirement account of $417 contributed per month pre-tax ($5000 a year). Beyond that amount per mon/year they need to put the money into some other form of long term investment.

[carterreth]

Whole LIfe insurance favors ONE entity, thre insurance company. You are taxed on the money before you put it in so it is not 100% "tax free". You can put money into your retirement fund BEFORE you are taxed on it. Money that is at a larger sum up front (not yet taxed) will grow to a larger amount even after being taxed upon withdrawal. It will almost always be more than any amount a Whole LIfe Policy could ever come 1/2 way to equalling.

[LifesTruthtoTell44]

I have had an agent come to my house showing me some Whole Life insurance and by the way he was talking he said that the Whole Life type of insurance is better than term insurance. I have been through two of Daves courses and I think that what Dave says makes more sense.

[petegoyeroslin]

it makes sence in a perfect world, unfortunately dave doesnt account for market fluctuation, adn estate taxation, with his plan the government will get half your estate when you die???

not such good advice when you look a little deeper is it??

[LifesTruthtoTell44]

petegoyeroslin: I don't really know what you are talking about because in the courses that I attended he definetly did account for the up and down market. He also did cover estate taxation and if a person doesn't understand these areas then someone like me can go onto his website and ask questions.

[petegoyeroslin]

mmm what course, PFS??

look ive worked through 2 recessions and i can tell you the reality of ramseys advice,,,its very flawed

estate taxes will eat half the estate, so explain to me how you can guarantee to me you are protecting your clients assets with a term policy that will expire.

, ramsay gives very generalized and basic advice, thats his appeal, there is much more to it then he is telling, or knows

[LifesTruthtoTell44]

Actually we have not looked into PFS yet. Like I was just explaining to NMFN that what has been taught to us is that we each can have over $1million in our 401k's and IRA's. Our Roth IRA's are tax free. It looks to me like you haven't gone to the courses that My wife and I have. Financial Peace University was one course. I don't remember the name of the other one. Thank you for the comment.

[petegoyeroslin]

well your right, they are tax free when drawing on them, but look what happens if you die, you will pass half of your ira to your kids because the government will deem it to be disposed of onyour death and tax it according to your income that year....

there is much more to this then a few day courses, likei said ive been doing this a while , and its never cut and dry and as simple as people make it out to be

[LifesTruthtoTell44]

Thank You petegoyeroslin for the reply's but after checking with my tax advisor, a financial advisor and with an online Tax question site I found out that half of my IRA would not be lost to taxes. I am not sure where you are from but for my situation your comments are wrong. I guess checking on You Tube about financial advice was not such a good thing to do. If I wanted bad advice I can get plenty of that from my local agents and bankers. Thank you anyway.

[AgencyBuilderUSA]

If you read the book Coach why would some agent have to tell you that WL is bad? Your 401K and IRA's will be taxed, you are right, it can be more that half, Pete is not talking about estate tax.

[LifesTruthtoTell44]

Agencybuilder, I didn't say that I read it. I said I just bought the book. I think you need to go back and read the reply's because he said "if you die" which means my beneficiaries loss. If you are giving the same advice then I guess you gave me the wrong information also.

[AgencyBuilderUSA]

You are right we don't know your situation. But this applies to everyone the ira(not roth) and 401k will be taxed at death for non spouse beneficiaries. Depending on when you die there are strategies that can be put in place so that your beneficiary(s) can get more out of there inheritance.

[LifesTruthtoTell44]

I will ask you this question and then see if your answer matches the answer I received? How much will not be taxed?

[AgencyBuilderUSA]

What kind of question is this? Don't know your situation.

[LifesTruthtoTell44]

Well Mr agency builder agent, if you have to make a statement like "Don't know your situation" then I am sorry but following your advice is dangerous to me. I made several calls to other professional people and they all gave me an answer but you just gave me a statement of "Don't know your situation". I won't be replying any more to you because it is a waste of my time. Thank you anyway.

[AgencyBuilderUSA]

They can't give you answer. To prove that you are lying whay answer did they give you?

[LifesTruthtoTell44]

Do you treat your potential clients this way? Insulting them? I have read several of your posts and it seems to me that you call a lot of other people liars. I was taught that it you think that everyone else around are liars then maybe you should look a yourself in the mirror and be calling you a liar because that is usually true. Good by Mr Agonybuilder.

[LifesTruthtoTell44]

P.S. After Reading some posts by Bond519 I think that Agonybuilder is an honest evaluation of you and your insults.

[bond519]

LifesTruthtoTell44: Good for you. Agonybuilder needs a good butt kicking. Kick him hard.

[LifesTruthtoTell44]

Mr. Bond519 your posts have been rude also. After making the mistake of making a comment on some video's, I feel that YouTube is a poor place to get financial advice.

[bond519]

LifesTruthtoTell44: You are right. some of my post have been rude and I appologize to you about that. I am only rude to people on YouTube that attack and insult me and won't carry any professionalism in their reply's. I have respect for other agents on here that treat me with respect even though we still have a difference of opinion. Here is my advice to you, bad financial advice is bad advice no matter where it comes from. Do your homework and ask a lot of questions. Good luck to you.

[AgencyBuilderUSA]

Who comes here for financial advice? Like I said, they can't give you and answer. If they did give you an answer, tell what was said....

[LifesTruthtoTell44]

Mr. AgencyBuilder I am confused, you have all kinds of informaion for other people but you don't have an answer to my question other than " I don't know your situation". I should have worded my comment better. I guess I didn't come here for advice as much as I came to solitify information and I guess I found exactly what I was looking for.

[AgencyBuilderUSA]

Others and I don't know your situation. So how would I know what will and won't be taxed. I did notice you have not told us was told to you. Some of us like to talk, and apparently you do too. So tell what was told to you and one of us with a big mouth will tell you. If you want you really want your information "solidified".

[Coveryourassetsnow]

Carterreth, Can Dave Ramsey place in WRITING his claims about mutual funds? Will you place your Series 6&63 licenses on the line to guarantee a clients future returns on his investment plan? Where are Dave Ramsey's 6&63 licenses, I mean since he is projecting what these funds will do in the future? Has his answer been approved by any state or fed regulatory body? I find this self insurance plan very risky if the foundation of the plan is mutual funds.

[NMFN2009]

I love it! Dave Ramsey is the ONLY person I've seen that feels this way about his NMFN policy. No matter, Dave Ramsey is nothing more than a "born-again" who learned a little thing or two about staying debt-free. Not too difficult, really. I'd like to see some credentials. Just because Fox news has him does that mean we should listen to him? I don't think so! Personally, I'd like to hear from a CFP, AEP, CLU, or ChFC. Where are Dave's credentials? Yet you put all that "stock" in him? Hmmmm

[wodendog]

So, I'm "not sure how in good conscience any agent can deliberately rip people off with" Primerica (or Primerica-like) Products and replace WL policies that mathematically should not be replaced "but . . . it happens every day."

[wodendog]

When ever people like yourself talk with NMFN2009, they always mention how many NMFN policies they have replaced. That's interesting because A). you can't prove that to us, B). NMFN (ironically) has one of, if not the lowest Persistency rates in the Business (meaning people don't replace them often, yet you guys seem to be replacing them all the time, go figure), and C). Replacing an existing WL policy tends to be a big mistake (mathematically) depending on how old it is.

[wodendog]

Carterreth, an interesting take on life insurance. Check out the video "Insurance Assurance". Also, google the article, "Five reasons not to buy Primerica Life Insurance."

I find it amazing that in today's current financial environment, people are still so down on WL, even when it's from a top company like NMFN or NYL.  WL companies fared far better than most of there financial counter parts in the last year.

[carterreth]

And Dave Ramsey flat CALLED YOU OUT! It is not to late to switch to the right side and do what is right for people. Heck and Primerica will even pay for your 6 & 63 license so you also help people invest in real investments/Mutual Funds. take your license and do some good with it!

[carterreth]

The whole reason Primerica was started was because they ripped off a little High School football coach. He started a his own life insurance company that is now Primerica. And Primerica does not even offer Whole Life. Dave Ramsey just makes it clear that it is NOT for 90 - 95% of the population and the 5 - 10% left can actually do better with other products. Now you know. Not sure how in good conscience any agent to deliberately rip people off with Whole Life but it happens every day.

[carterreth]

It is beyond the IRA contributions that they argue that Whole life can benefit a client. I only disagree that 25% are already investing $417 a month, $5000 a year and need to do something with investments beyond that. More likely about 5 - 10% have more than $417 a month to invest (not including their 401K which would be even more they are investing).

[carterreth]

Once they understand how it works they never look back... it wasn't too long after I had replaced a few NWML policies that NWML tried to hire me. They were honest and said that Whole life is only for the 25% of the population that needs to invest beyond their maxed out IRA that beats any whole life.

[carterreth]

Don't be upset because Dave said on national television how big a rip-off Whole Life is and NWML is in selling it. No one is dumb enough to replace Term with Whole life once they have been informed! That is a no brainer! I have never had anyone replace any of my polices with junk whole life... but I have replaced a long list of NWML's whole life...

[NMFN2009]

Hey carterreth, did you edit this video because you're a Primerica junky? Or has a competent Northwestern agent swooped in and replaced all of your business? You're not bitter are you? No, it doesn't show. LOL.