Life Insurance 101: Term Life Insurance vs Whole Life Insurance

[WhyFlowerBack]

I should of looked this up, but too late... Bought life insurance for my mom and now, too late to turn back.

[h2oskier45]

I'm an investor, just curious, can you tell me where I can find a 12% mutual fund? I'd like to reallocate some funds.

[owenbuca]

@h2oskier45 Invest in US small cap companies, they have doe 13.8% since 1950.

[h2oskier45]

@owenbuca so what percentage of the portfolio should be dedicated to small caps? Should I put it all in SC's? I thought I was suppose to diversify????

How are small caps doing these past few years?

[owenbuca]

@h2oskier45 70/30 with some corporate bonds. It is a great time to be buying. You will be thanking me.

[stealthrs]

As people read the comments here, make sure you see that none of the Buy Term Only haters have no logical rebuttals to the people who are making a case for Whole Life..... Only attacks, because they have NO EXPERTISE or professioanl licenses. 90% of the Wealth is owned by 10% of the nation, what are some of the things they are doing diifferently? Actually having a strategy instead of winging it is one of those things.... I'm more than willing to facilitate a logical discussion with any takers.

[owenbuca]

@stealthrs ha trash value salesmen will burn in hell, when it's all said and done.

[stealthrs]

@owenbuca You can't come up with a logical rebuttal to what I said, other than try to insult and force your opinion... If you wanted to try posting facts, then you'd actually post things that agreed with me.... You aren't a licensed advisor, you're vastly incorrect off what you've posted, and you aren't held to any regulatory standards for your advice.

[owenbuca]

@stealthrs trash value is the shittiest thing a family can get.

[stealthrs]

@owenbuca Just because you don't understand how to leverage it doesn't mean it's a bad deal.

[lctechnician]

Im not giving any advice, all i said is that cash value should b call trash value, u must b an idiot thats owns it or sells it and ripping people off with it

[WealthyCastle]

12% Return on Mutual Funds? That has not happened and is not likely to happen. The market has returned less than 1% for the last decade.

[owenbuca]

@WealthyCastle wow and whole life policies gives you zero cash for the first 1- 19 years.

[lctechnician]

cash value is just trash value.... Term insurance is the way to go.... if you own whole life then you being screweddd and if you proud that you own it then you jut an knucklehead idiot

[lwmitch10]

@lctechnician hahaha. I hope no one is making a decision based on your comments. First, learn the English language, then you may be able to give some advice

[HarvJenks]

This is one of the most unethical life insurance presentations I have ever seen.

[yoranasshole]

@HarvJenks

Let me guess, you sell whole life insurance? Crook

[HarvJenks]

@yoranasshole That assumption would be inaccurate. However, since you call names and don't use your real name I can assume that you are a liar and a coward. Be bold. Be honest. Start right now.

[yoranasshole]

@HarvJenks

There's nothing unethical about teaching people to stay away from trash value insurance. Selling it would be unethical. You wouldn't believe how many crooks there are on youtube that defends Whole Life diligently. Having a username that isn't my real name doesn't make me a coward or a liar. If that was true, than at least 90% of Youtubers are cowards. Really bad argument. Try again.

[stealthrs]

Financial Planning is in your username? You're obviously not a financial planner, and your whole presentation is based off wild, inaccurate, and unethical philosophies and assumptions. 12% Linear Rate of Return is just starting it... It's mindblowing how unprofessional this video is, and even more-so that people might pay attention to it.

[yoranasshole]

@stealthrs = whole life salesman. That's why he's bitching

[stealthrs]

@yoranasshole Financial Advisor and proud owner of whole life insurance to leverage against my other assets.

[yoranasshole]

@stealthrs

So you're proud to screw yourself and your family over. Nice

[stealthrs]

@yoranasshole No idiot. It means I'm my own best client... I own Permanent Life insurance to make my life better. Even if I chose to re-enter the IT industry, I'm not dropping my coverage.... Nice try troll.

[yoranasshole]

@stealthrs

LOL. If only if you knew...

[stealthrs]

@yoranasshole That's all you have to come back with? Heh... I can own you all day long if I cared to have the time for it...

[yoranasshole]

@stealthrs

So you do know, you just don't care who you screw over to make a buck? How typical. I don't know how you people sleep at night

[stealthrs]

@yoranasshole What exactly are you suggesting I know? You're not making any sense, nor are you giving any logical arguments. I sleep at night because my clients have more options, MORE WEALTH AND SPENDABILITY OF THAT WEALTH, are better protected, more tax efficient, and have less risk in their lives. That's how I sleep... How do you sleep? lol.

[yoranasshole]

@stealthrs

Justifying your crooked ways. Typical

[evergreenwealth]

This guy should stick to selling Term. I like how he makes blanket statements of how life insurance works, just like Suzy Ormann. Not all the facts he discussed are accurate, but Permenant types of contracts can help people that want to pass more on to future generations to help them out or for higher income earners that cannot do a Roth IRA and want possible tax favorable income. Term is usually appropiate, but not in all cases.

[BeyondAverageLlife]

There are plenty of opportunities outside of a life insurance policy to pass wealth to future generations, even for the wealthy. Why in all my years have I not met ONE SINGLE person living off of the "wealth" they've acumulated in their policy? And, why I have I yet to see a policy that acctually has performed as projected in the policy? Smoke and mirros buddie? Keep selling it too and I'll keep replacing it and looking like a hero to the families I save from your garbage Wole Life policies.

[evergreenwealth]

@BeyondAverageLlife

You should know that are different types of policies out there besides Whole Life, which I never discussed in my prior e-mail. I said permanent types of life insurance. If you think the answer is only selling term, I feel sorry for your and your clients. I guess you are not familiar ; so here are the types Level Term , Guaranteed Universal life, Variable Universal life, Blends of these with term and permanent. Indexed Universal lifes, different types of whole & blends

[evergreenwealth]

@BeyondAverageLlife

To add to the last e-mail comments: There are many ways to pass wealth on to future generations without life insurance, but the IRR can be more effective for higher income individuals. You might not be familiar with this, but some day you may learn and understand how higher income people generate possible tax free wealth using there own money, by using permenant types of policies, not term.

[BeyondAverageLlife]

@evergreenwealth Please dont assume that because I market Term I am uneducated! I am extreamly educated on UL, VUL, ROP, WL and any other blend that an Insurance company can come up with. Like I said, and you did not adress, why in all my years have i yet to meet a client wealthy or not that has a policy that preforms as projected in the policy or that they are living off of the accumulation in the policy? I continue to be assured theyre out there by people like you, but have yet to see it.

[BeyondAverageLlife]

In addition, assuming they did acumulate enough to live on. In order to use it in retirement you have 2 options. Borrow your retirment from the policy at interest. Or, withdrawl the Cash Value and the policy is toast. Now you seem to think I'm not a very bright guy, but please explain to me how that makes any financial sense. Stop protecting your commision and admit that in 99.9% of cases low cost, high quality term coupled with a long term investment program makes the most sense.

[wodendog]

@BeyondAverageLlife: I agree with some of what you say, though 99.9% I believe is likely too high a figure. Let me ask you this. When you come across Permanent products do you always replace them?

Check out my earlier posts on the previous page and let me know what you think.

[BeyondAverageLlife]

@wodendog In almost every case. There are of course exceptions usually dealing with insurability or older clients. Example of a recently replaced policy for a 68 year old- UL,$42k in CV,$200,000 DB. $186p/m. Replaced with $300,000 15 yr gaur renw to 95 term. Cost $284 per month. The UL policy was loosing CV quickly because they could not afford to increase their premium to match the increasing cost of the policy. Continued above...

[BeyondAverageLlife]

Invest the $42k draw off $200p/m (5.25% of the value) to help pay premiums, saved them $102p/m in the budget. Increased coverage by $100,000 and they would actually keep the investment instead of loosing it to the ins company if he passed. At the rate the UL policy was going it would have lapsed in 4 to 5 years. After 15 years the hypothetical investment account value will have paid for $36,000 in premiums and will have $48k, $6,000 more than we started with. (Actual market history 1996-2011)

[wodendog]

@BeyondAverageLlife: What would you have advised in that same situation if it had been WL instead of UL and no CV had been taken out in the past by the policy holder?

[42prissy]

Sorry but this guy is brainwashed. I love it when I get the opportunity to sit down with a customer and compare his company views with the truth. It's usually an easy sale unless the customer is one of his relatives. I wish I made those kind of commissions on permanent life but simply not true. Good try. Find a real company that trains you based on facts.

[jiminycricket18]

Don't leave your loved ones high and dry. Make sure you are properly insured.

Call this toll free number 877-855-1784 to get a free term life insurance quote from top rated companies.

A specialist broker will speak to you and to discuss which policy best suits your requirements and budget.

Take the time to make sure you are taking care of your family. Who will if you don't?

It's just one phonecall 877-855-1784.

[karthik400]

Good comparison. Thanks



[hj1016]

Mostly LIES!

98% of TERM insurance policies go unpaid - people outlive the term. Then, all of your premiums are LOST.

At 3:20, 5%-8% "fee"??? Policy loans cost interest, but the good cash value policies credit the same rate to the cash value as to the loans, to the loans are "wash loans", and do not cost you a penny. Try borrowing money from the bank at 0%.

At 3:33, Why would you drop coverage? Only if you grossly mismanage your policy.

DO NOT TRUST THIS GUY!

[insurancemike10]

Here is a good Primerica example - 45 year old - $1,000,000 for 20 years and 30 years - Male for 20 = $1995, for 30 = 2435 (annually for both) - females are charged the same. Pru, ING and Trans for same policy - ave male at 20 = 1200, at 30 = 1900, Here's the best - female ave at 20 = 900 and at 30 = 1400 - They use unisex rates which hurts the females - to pay monthly they then charge 14% of premium - run people run

[insurancemike10]

Next untruth - Why would letting my insurance lapse or terminate at age 65 be a good thing? Imagine having a $1,000,000 policy one day and nothing the next? Wow that soulds like good financial planning. Google "why some investors may be fooling themselves - wsj" its a Wall St Journal article on the reality of what ave. americans return in the market.

[insurancemike10]

What a joke - first term commission are in line percentage wish with permanent. Then to compare a mutual fund with a linear 12%??? in the last 10 years mutual funds have averaged less than 2% and most with negative returns. Don't believe these Primerica guys - term is fine but theirs is SUPER expensive and they charge you 14% to pay monthtly - they have the highest term commission in the market!!!

[wodendog]

Billions of dollars worth of BOLI and COLI (bank/corporate owned life insurance) are purchased every year by money management professionals. BOLI and COLI, by the way, are Typically WL products. These policies insure the companies top employees in a more reliable way than BTID. CITIgroup owns Primerica (a company that sells only Level term products) yet is buys WL for it's own employees. Why would they do that?

Your efforts are noble but your facts are incorrect.

[wodendog]

Continued . . . a 200K policy today with a 2K premium will might be worth 300K in 20 years and have 60K in CV (these figures are only for conceptual purposes). So, if this person dies, the family gets 300K (tax free).

If WL (and other CV) polices worked the way you claim they do, then no one would buy them. However, wealthy people, upper middle class people, banks, companies, and corporations buy billions is WL every year. All these groups know about and care about their money.

[wodendog]

Regarding #5: For starts, the "bank" doesn't keep anything because there is no bank in most cases. CV in a WL policy should not be thought of as a separate account from the Life Insurance. Only one contract is signed, right? CV is more like a portion of the Death Benefit that you have access to while you are still alive. Also, Death Benefits grow over time, typically as much or more than the value of the CV.

[wodendog]

The other 1/2 of the dividend continues to increase the CV and Death Benefit.

Third, your 5 "funny banking" facts are anything but. In order: 1) False: Good companies have CV in the first few months. 2) False: over the long haul, CV has a 4-6% growth rate, usually tax free. 3) True: Nice job. 4) False: Most companies can pull the money out in days. 5) Technically False (seemingly True): This takes more explanation. See my next post.

[wodendog]

Whole Life Insurance is called "Whole Life" for a reason. They are specifically structured so that what you describe (CV paying for the premium) does not happen. Dividends (not CV) typically pay for policies when owners choose to stop paying. And Dividends in WL polices always rise. I have a 30 year old WL policy. My dividends are twice that of my premium. That means I can stop paying for the policy at any time and have 1/2 the dividend pay for the policy.

[wodendog]

FPT, I can't tell if you are another brainwashed Termite or if you are just being deceitful. Let's set a few things straight. First, you say CVLI (WL) is 3-6 times as expensive as Term. Either you are using exceedingly expensive term or exceedingly cheap WL when making that statement. WL is more like 10-20 times more expensive than term. Second, in the later years of a WL policy, CV does not pay the premiums. There may be some small rinky-dink companies that do this, but not many.