Here in New Zealand I've taken out a Life Insurance Policy with AA Insurance. It's called: "AA Life Cover". My Premiums (as I'm a 30 year old Male, Non-Smoker) are $15.29 NZD per fortnight for: $400,000 Cover. If I die early, then my Beneficiary gets: $10,000 straight away for Funeral Cover. If I get diagnosed with a Terminal Illness, then the whole amount gets paid out in a lump sum (tax free). Suicide is covered also after 13 months. Every year on the date I took out my policy my Policy Cover Amount is increased by a minimum of 2%. So that's about: $8,000 per year. That's pretty good. I'm happy with it. So if i kark it before my Mum & Step-Dad - then they will be looked after once I'm gone. 👍👍
@@mr.yellowstrat3352 I guess if you are a billionaire and or just dont give a shit about your family having to deal with your debt then ya you don’t need it ….who wants to give their kids a generational wealth advantage right ?
@@mr.yellowstrat3352 I’m a new agent in Hawaii and being one of the most expensive states, life insurance helped families here (including cancer treatments) cash value was also beneficial which made the clients invests in more assets to earn passive income.
As I approach retirement, ensuring the stability of my 401k after the turbulent year of 2022 is a top priority. I've come across stories of investors achieving up to $270k in ROI during this current declining market. Any advice on enhancing my ROI before retirement would be highly valued.
Many people underestimate the importance of advisors until their emotions lead to financial setbacks. I recall a couple of summers ago, during my protracted divorce, when I needed a significant boost to keep my business afloat. I conducted research and found a highly qualified licensed advisor. She has effectively increased my savings from $220k to $740k, even in the face of inflation.
Hello! Sonya lee Mitchellr is my consultant. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online.
Hello! Sonya lee Mitchellr is my consultant. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online.
I love the video. I've been looking for something like this that's very easy to understand. However, I wish that you had emphasized that term insurance in designed to end before life expectancy, making mostly a "premature death" insurance
With whole life, the insurance company keeps the “cash value” when you die. Dependents Only get the death benefit. Also, the rate of return on the cash value is very low at best about 1-4% while you would average about 10% in the stock market over the long term. Also, insurance salesmen get huge commissions and fees off of selling you whole life policies. Often the first few years of premiums goes into fees and commissions, not the cash value. Please do independent research and do not take investment advice from insurance salesmen. They are not required to advise in your best interest
Actually that’s not true at all . While obviously sales people get commissions for their work , agent to be licensed has to act in your best Interest . If they are not you can easily lodge a complaint with ( CCIR) . Also what you are saying about the policy commission being high is BS . It is based on the value of the policy. And only a few percentage points . So obviously Life policies have more commission than term policies . The insurance company pays the agent out of their pocket and then no different than a mortgage there is a higher percentage of your premium which goes towards covering commission and admin fees etc at commencement of your policy . Insurance agents are no different than realtors , the actual Commission rate is around 2.6% to 17% based on the policy and company . It’s paid out if first year of premiums along with your admin fees etc .
@@astroman30 it’s actually deceptive and misleading . first off it’s not an investment product it’s an insurance , you know like house insurance or car insurance ? So the investment part is purely a benefit which actually is much safer than playing any stocks on the market to yield 10% . Take your stock portfolio to the bank and see how easy it is to get a collateral loan compared to a life insurance policy .
So you are saying Details are important and painting the full picture as well? I hate when individuals don't include important details as you have stated. I find it unethical at a minimum.
Just be careful with whole life from I have been researching the whole life charges an outrageous premium and that monthly premium goes into actually funding the let's say 200k death benefit you want for the first 5 or 10 years, so it takes that long to actually build your DB before your premiums start heading towards your cash value, and the your cash value is all yours tax free, until you want to borrow against it now the insurance company charges you a percentage to withdraw that money that is your money and also when you die it gets absorbed by the Insurance company, and your family gets the 200k DB....look into universal indexed life insurance
it's better to buy term and invest the difference. Then you'll have a sizeable investment when your term is up and therefore should not longer have the need for insurance as you would be self-insured.
Keep in mind that investing the difference have a lot of issues as well: 1. The risk. You can gain interest all you want, but there's no floor to your investments. All it takes is just one bad drop & your investment & time is gone just like that. Example, 2001 & 2008. 2. What if your performance is not as good as you thought by the end of your term policy & you need more coverage? There's not a chance you can get another term. It will be more expensive because you age & your health condition is questionable, even uninsurable. 3. What is considered sizable investment? Crossing your fingers to have a great performance in your non-guaranteed bottomless investment strategy with the time given by the term insurance? Or having coverage for the rest of your life with guaranteed floor so that your money is guaranteed safe? Buy term and invest the difference is great back then, when the interest rate is all time high, but not anymore. Most of the time, people who follow this strategy ended up spending the money they're supposed to invest, as most people have no discipline & self control. Also, this is one of the cause of the rise of unemployment. When people plan to retire with their 401k, IRA, or pension, during the year of 2001 & 2008, their portfolio went down so hard they can't afford to retire & have to go back to the work force. Baby boomers filled up lots of job spots when they're supposed to retire & ended up causing the younger generations to have a harder time finding a job. However, if you're an economic savvy & great with financial strategy, don't need anyone to plan your finance, you're extremely discipline with your money, have elite level self control, have the mind like Warren Buffett, I would recommend to follow the strategy to buy term & invest the difference...but this section would be considered a unicorn.
Drefyxd your wrong about investing the difference there is a floor and you are safe. this guy is dumb having all 3 types of insurance. he doesn't even know what the best if only 200k in all those years that's a little bit.
This video has helped so much. Taking the life insurance exam on December 5. I feel like I know the concepts, but the modules through the prelicensing course through XCEL solutions confused me so much. Thank you for providing clarity.
Disagree that the best one is the one you own when you die. You buy life insurance to hedge against unexpected death. Just like car insurance to hedge against the unexpected accident. You don't buy "universal car insurance" to help replace your car when it finally wears out.
It actually depends. Every person is different. So for him, which it seemed he was basing his opinion, is the best for him and he recommends to others because it's the best for him. It all comes down to what your looking for in a policy.
You need a brain insurance cause you’re comparing apples with oranges...ppl get life insurance to protect family members from the expenses that comes after death.
Businesses can have a "key person" provision or rider in their policies so that if the insured dies or can no longer work then the face amount proceeds goes to the Business (who owns the policy) to find a replacement employee without having a big impact on the business.
He forgot to mention that once you die, the family only gets the death benefit but not the cash value accumulated, you either get one or the other, which ever is higher, but not both.
so? if you did term you wouldn't have any cash value either, at least with whole you have the option of cash value or your death benefit PLUS a level premium for life and consistent coverage... how is this everyone's argument?
I like his blurb about how wonderful his whole life insurance is. Don't know if he realized that over 25 years, he only saw a geometric average rate of return of 2.5%. Perhaps his investment was low risk and thus low return, but it sure hella isn't very sexy or comparable to the snp500
chinesebaloni Completely irrelevant comparison… One is savings with no risk that can also be leveraged for other investments, the other is an investment w risk… Plus that rate of return does NOT include death benefit, which is probably double his cash value, and which would not be taxed. Not saying whole life is better than the S&P… Just pointing out they are totally different asset classes with different benefits and actually can complement each other very well. For instance, if you need income in a bear market, you can withdraw from life insurance and therefore don’t have to sell stocks when they are down. Also many business owners are now using whole life as collateral to borrow from banks at WSJ prime, which usually beats the hell out of equipment leases and other business financing. And if you’re saving for college in a 529… You will sabotage your kid’s chance of financial aid, whereas whole life is rarely considered an asset and can help families obtain grants or scholarships.
RENE Rivera When you apply for Financial aid through the FAFSA, a 529 is an asset that will count against the aid your child will qualify for. Only rarely does a college consider whole life insurance cash value as an asset. So saving there instead of a 529 can greatly improve a child or grandchild’s financial aid package.
@@thekatephillips How can you even consider that paying interest to borrow your own money for whatever investment is a benefit? That's more like a RIP-off. Not to mention, when you die your family gets the death benefit and not the cash value.
Buy Term, invest the difference into a mutual fund, and you will have a lot more than 217k waiting for you. He's making less than 5% growth when the market average is almost 12%. When you have enough money to cover your expenses, lets say a million there is no need to have any life insurance ever again.
Do you know what happens to mutual funds sitting in a bank when you pass away? All your assets are frozen including bank accounts, stocks, mutual funds etc forms part of your estate which is then subjected to probate. If you have a will in place, your estate might get settled in about a year and it will go to your beneficiaries after all the taxes and probate fee has been paid and deducted. If you don't have a will, it can take n number of years. Life Insurance and seg funds (mutual funds through insurance companies but with guarantees that mutual funds do not have) go to your loved ones within 30 days. The question is, do you want to put your loved ones through financial stress when they're going through such a huge emotional stress?
I’ve heard when the policy holder passes the family gets either the cash value or the death benefit and not both. Is this true? Why does save Ramsey hate whole/universal life insurance so much?
Raftika that is true unless they get a universal option b which comes with an extra cost. Either way. Its a stupid idea. Paying extra to keep your own money back? Makes no sense
Can someone tell the owner of an insurance policy it is cancelled then alter the documents and become the beneficiary of someone else's policy. Me thinks it's been done.
Antonio Moniz please consider the fact that permanent insurance is about 5cents for every 1$ of whole life. Meaning you can get the amount you really need for an affordable price. Also, if you access your money as he says you will need to loan it to yourself at interest payable to the insurance company.(?) if you have loan out and pass away, your death benefit is lowered by your loan amount. 1 last thing. If you pass away, your family either gets the insurance or the cash value. They do not get both. So if you have a 100,000$ policy and 80,000$ in cash value when you die. your family gets the 100,000$ but the company keeps 80,000$,. so how much insurance did they really pay out? Term insurance is a lot less expensive, leaving you enough money to invest per month into mutual funds or other investments where it can grow significantly better than in an insurance product. Insurance is supposed to protect your building money, until you enough of your own money and don't need it anymore. I hope this helps
@@deondavis7183 get your facts straight! I replaced a 3 yrs old primerica term policy, doubled the death benefit and it was still less than what the client was paying for.
@@robertkaraczun8906 because it's what they don't tell you about Cash Value (Whole Life/Universal Life) that one should be careful with those policies as the "Cash Value" is money YOU pay into the policy that they let you BORROW when you needed, and on top of that they charge you interest on YOUR money that you put in when you decide ti take it out in the form of a loan!
@@g-boyog8825 This is policy dependent and not all policies work like that. Yes a portion of the cash value you have access to is your money, that is how investments work. Many policies have a zero fee cash value withdraw so long as it is under certain terms and conditions.
This is a pretty fair and informative video. One caveat: a lot of universal life policies have collapsed, because the internal costs of the policies keep rising as people get older. IMO the best types of term insurance is convertible term (fairly cheap term insurance that can be converted to whole life if you wish). It’s good to keep your options open and it’s a way to have guaranteed permanent insurability without the high cost of whole life in the early years. (I don’t sell life insurance, but I write about it and I own convertible term).
moviedude22 Dude, didn’t see your comment. Partners for Prosperity is a great advising firm for whole life/convertible term... Kim Butler’s book Live Your Life Insurance is very helpful.
I would have to agree. Term with convertibility is the cheapest in the long run. Whole life costs a lot more and the cash value is pretty small compared to any kind of securities account. If you buy term with a guaranteed renew ability rider you can renew your term at the end of it even if you are on your deathbed because the rider guarantees your premium will only rise because of your age. And as far as your question @moviedude22 I don't know about firms or whatever but recently I have been working with a company called primerica and they sell term policies with some really nice benefits like a built in renew ability rider and a built in family rider. And they are quite cheap. I've personally seen a lot of people who have switched to term insurance and saved 100+ dollars a month. Plus they sell 35 year term and other companies mostly do not.
With Whole Life Insurance, if I access my cash value, does that cancel my insurance? If I die, what happens to the cash value? Do my heirs get the insurance value PLUS the built up cash value?
If you cash out completely, you lose the insurance. If you die, the cash value goes to the insurance company and not to your heirs. At least that is my understanding based on this video: ua-cam.com/video/ZFLAsu97C9M/v-deo.html
If you access your cash value, it does not cancel your insurance. But, you do have to pay that money back as you are borrowing in the form of a loan. The benefit of this is your money is still growing in the policy at the same rate of the loan you took out. So you are basically borrowing the money for 0% interest. When you pass away, your heirs will only receive the death benefit of your policy, which will be more than you ever put in.
Ah, so that's how its done, kinda. So what happens after you pull out some of that Cash Surrender Value? How does if affect your premiums? Your death benefit? Any other part of the policy? Does the cash surrender value somehow return? Does it even go down after you pull some out? What strings come with the CSV?
So whole life....all the cash value when I die go right in the insurers pocket, not my families and if I want to borrow against my cash value I paid into I also now have to pay a percentage to pull that money which is essentially my money already right? So I get loan sharked on my own money? And again my family only gets the 500k, that took 5 to 10 years to build through the premiums, and zero from the cash value....hmmm how about an indexed universal plan vs. the whole life?
Great materials. Starting my career in the insurance industry. Everyday I am doing case study, and surprisingly, alot of people have bought life insurance to help the family get back up. Especially widow with 2 kids to feed.
Well let's consider this, in most scenarios you will usually have less cash surrender value than the coverage for the first couple decades of ownership, towards the end of your life your cash value will slowly match up with the coverage amount. Plus the fact that your money is growing and you only pay for 20 years, in either case, your family will be paid more than the money you put into your WL when you die. Do you wanna be paid more or less than what you put in?
Kurosu Ha you really can’t/shouldn’t compare whole life to other investments… One is savings with no risk that grows tax-free and can also be leveraged for other investments, other investments typically have risk, are taxable and aren’t as easy to leverage… Plus that rate of return does NOT include death benefit, which is probably double his cash value (might be 100x cash value the first year) and which would not be taxed. Not saying whole life is “better” than other investments… Just pointing out they are totally different asset classes with different benefits and actually can complement each other very well. For instance, if you need income in a bear market, you can withdraw from life insurance and therefore don’t have to sell stocks when they are down. Also many business owners are now using whole life as collateral to borrow from banks at WSJ prime, which usually beats the hell out of equipment leases and other business financing. And if you’re saving for college in a 529… You will sabotage your kid’s chance of financial aid, whereas whole life is rarely considered an asset and can help families obtain grants or scholarships.
What kind of other, risk free investment would give you 4.8%??, Whole Life insurance is absolutely risk free, yes, (as risk free as any other Financial institution)
Kate Phillips All of the things you mentioned are not necessary if you’re financially savvy,m which will make financially independent and self insurable. By term and invest the difference is the way to go. Stop paying insurance companies fees for something you can do yourself!
Did you hear him say no matter what your family will get the death benefit when you die? He didn't say they will get both the insurance and the saving......
zolianu007 the total value of Life insurance is always the face value, which grows over time. The cash value is actually your “equity“ in the policy, the portion of the death benefit you can access through loans, withdrawals, or if you cancel the policy. It’s a little bit similar to how equity grows as you pay down a mortgage.
Ryan Swope let me try to explain it another way. You build up equity over time in a home. If you sell a house and your mortgage is equal to half the value of the home, you don’t get the whole sales price as profit... You get half of it, because that was your equity in it. Whole life is a bit similar (though it’s not a perfect metaphor). The face value or death benefit is the entire policy value. The cash value is like equity-it’s the portion a policy owner can withdraw or borrow against. And as your cash value grows… So does the face value amount. But the policy is never worth more than the face value, just like a home is never worth more than its market value… Regardless of how much equity you have in it. Hope that helps! I’ve been writing about life insurance for 10 years, and it took me awhile to understand whole life.
Kate Phillips once again. Cash value isnt under your name. Thats why you ASK for permission to get your savings and can be given to you whenever the company feels like it
What happens after your term is over (talking about the term life insurance) and you didn’t die in that time frame? Does the money you paid so far just get wasted ? Thank you
There's a possibility you can renew your policy. No money is really wasted because you've been protected during that period, when in most cases, your family really relies on. What I'm actually doubting is some of the information given for whole life/universal.
You can convert your policy to a permanent policy, but if you don’t, you would no longer be covered by insurance. I personally think permanent insurance makes more sense, but people have all different kinds of reasons to get different insurances. Just depends on what you need!
Made right that it makes a massive amount for him to take when you die....same thing when you need to take it out for any reason at any time when they end up charging you a percentage to borrow against it loan sharking your own money to you
J you do not get your premiums back? You pay for car insurance dont you? When the term is up do they give you money back if you dont crash? No. Its a service/product. Its much less expensive. Instead buy a term policy for a lower cost and save up money in a retirement account
Great question J. You do get it back only if you have return of premium (ROP) term life insurance. Feel free to reach out to me at iamreneantoine@gmail.com if you have more questions or need clarification. Take care.
If you get a Term policy with ROP aka Return of Premium, then yes you can get your premiums back. Premiums are paid back minus the cost of insurance usually. Also, most term policies these days offer convertibilty, which means you can convert it to a qualifying permanent product without evidence of insurability. This can be greatly beneficial if health has declined since the Term policy went in-force.
if you die prematurely with your permanent ins, does your beneficiary get both the death benefit and your cash value? or does the company keep the cash value portion and only pay the death benefit?
Many life insurance companies specialize in different types of life insurance policies. It can also be difficult to know which life insurance company can offer you best types of life insurance for your unique planning needs.
I couldn't say for sure, but certainly it is not unique to the US. I know it is available in Canada. But since I'm not licensed and don't sell insurance outside the US, I couldn't speak to the the availability of any particular types of products in any particular county.
Some, not all, non US citizens can buy US based life insurance, but they do need to be here in the US to make the purchase. There are also life insurance companies in other countries that might be a better fit. Each country has its own laws and rules regarding life insurance and how it may work there.
What you need greatly depends on your personal situation. I typically lean towards buying term life insurance (extremely cheap, especially at your age) for a long term, and take what you would have spent on whole life and invest it in the market. I'll use the speaker's own situation. If he had bought a term policy 25 years ago for $50 and invested the difference (about $336/mo) getting 8% average return from the market, he'd have over $300,000 instead of a little over $200,000 and he would OWN the investment. Technically speaking the insurance company owns his cash value now until he cancels it. Find me on FB and send me a message if you have questions --> facebook.com/ryan.swope.92
The best to buy at your age is term life. It will be very cheap! And you save and invest in proper securities. See term life as an overall financial plan not in isolation. You can choose one with ROP return of premiums option where all premiums paid are returned if you outlive the term. The cover period will depend on when you think you will be financially independent and self insured.
Why is it called "Cash Surrender"?? Where is the cash in the cash value coming from? How much coverage of you have with your whole life policy? Are you paying that annually or monthly? I have so many questions. Awaiting a response.
I am not affiliated with the makers of this video, but if you want some common sense answers to your life insurance questions, shoot me a message on FB. I have a degree in education and have been teaching financial concepts for the past 6 years. I don't recommend anything I don't thoroughly research and believe in for myself and my family. --> facebook.com/ryan.swope.92
My mother passed away and she had a life insurance policy on me. She took out the policy when I was a child, so I don't even know what type of life insurance I have. I didn't pay the policy for 5 year after she passed. I paid it on the 6 year. How does that happen?
UL and whole life are permanent life insurance. UL is the most expensive but you'll get the best return and rates but premiums are costly. UL is the Rolls-Royce of insurance
Want to know more about insurance and insurance benfits? Just check out our article: instaloverz.com/learn-more-about-insurance-benefits-of-insurance-and-types-of-insurance-policies/
If your terms ends. Thats the end of the policy. Insurance companies will re-rate you depending on the current health conditions & age. Its best to get a permanent life when you are young !
@@Eyanlakhani The idea of term insurance is to get cheap coverage while you invest and grow your wealth. If you have an average income and a few hundred thousand saved outside of other typical retirement plans, what do you need insurance for? If buy term and invest properly, there is typically never any need for any type of whole life policy EVER.
There was a lot of information left out. Highly biased toward whole life which is notoriously high commissions and fees, and notoriously low returns when compared to other typical investments. Also, your cash value can be "ACCESSED" at any time for any reason, but you have to pay it back in the form of a loan with interest. Guess where the interest goes? The company, not you. When's the last time you loaned money from yourself and paid someone else the interest?
Hi Daniel, If you'd like to learn more, I specialize in Life Insurance and work with CFPs with decades of experience. If you'd like to talk send me a message and we'll set up a call. Best, Joe
I agree I have whole life. Got it b4 age 50..more like at 42..my premium is $32.50..and I've never had to borrow against it. So theres money sitting at my disposal. So hes correct whole life is the best as far as any return.
8 місяців тому
@mmtaxconsultingllc2986 Well, in that case, I have a beneficiary already set in place years now and plus the point is this why take the money out before I die???..insurance is solely for the purpose of paying for your "burial-"👀
That's pretty sad. 25 years at that premium and cash surrender value comes out to a 4.6% rate of return. Why would you be impressed about that when you could make so much more in other investments. Even if the investment gurus out there are wrong on their high returns suggested you can still do better than this. My 401k took a hit in 2008-9 but came back just fine. When I learned more and changed my mix I made far more. Last year was freaky and I made close to 20%.
Term insurance is for the people in the age group of 25 -30. Permanent insurance is for people above 40 years of age. Premium is low in term insurance compare to whole life insurance.
Alvaro, we have many licensed agents in Arizona. Please send me your contact information and what you are looking for and I will see that it gets directed to the proper agent. ggarbowicz@accuquote.com. Best Regards, Glenn
Pay 20 times more in whole life insurance than term insurance because of this magical "cash savings." Thus, the only way to get money out of MY cash savings would be to BORROW against MY OWN MONEY (paying it back plus interest) or cancel the policy paying a huge "surrender" fee. Plus, when I die, the insurance company KEEPS the cash savings or they deduct it from the death benefit. Whole life insurance is one of the most expensive policies to buy while paying out high commissions to salesmen. Garbage.
It means you can pay more on the front end to not pay on the back end. A horrible inaccurate example might be paying $100/mo for $100,000 of coverage for life, OR paying $500/mo for 10 years and then you never have to pay again but you still have coverage til you die or cancel. What he (intentionally I'm sure) neglected to mention was that if you'd take that high premium you pay for 10 years and invest it in the market, you'd likely be much better off and wouldn't even need life insurance anymore. PM me if you have questions --> facebook.com/ryan.swope.92
Term Life insurance.You can get covered for $500,000 for easily $25-$30 a month. I went with Zander Insurance. My wife and I got term insurance a few weeks after getting married.
@CityKids you should get a indexed universal life for 100,000 coverage since you’re a female it’ll be cheaper and you will be paying approximately 40$ or less
You forget to mention that the cash value on whole life insurance? Yea, it’s taxed. And if you die before claiming it, your beneficiary doesn’t get it!!! The insurance company keeps it!!
Is it legal to cancel a person's life insurance by hiding a drafted premium and then threatening to kill the person through the postal mail? Yep that's illegal.
That family was way too happy when the father passed..
I agree. That was the only part that made it a bit odd. "Yes! Dad's gone and we have bags of money on our dinner table."
He'd get drunk and hit the mother....
the dinner they were eating threw me off.. steak, tacos, and mashed potatoes
the husband worked too much so ...yeah
Actually their gradfather died
He should do all of the training video’s for insurance, easy to understand and follow.
Knew NOTHING about insurance but now have a clear understanding of it!! Thank you
Here in New Zealand I've taken out a Life Insurance Policy with AA Insurance. It's called: "AA Life Cover". My Premiums (as I'm a 30 year old Male, Non-Smoker) are $15.29 NZD per fortnight for: $400,000 Cover. If I die early, then my Beneficiary gets: $10,000 straight away for Funeral Cover. If I get diagnosed with a Terminal Illness, then the whole amount gets paid out in a lump sum (tax free). Suicide is covered also after 13 months. Every year on the date I took out my policy my Policy Cover Amount is increased by a minimum of 2%. So that's about: $8,000 per year. That's pretty good. I'm happy with it. So if i kark it before my Mum & Step-Dad - then they will be looked after once I'm gone. 👍👍
I'm new to the life insurance field as an agent. I appreciate you for providing this breakdown!
same here!! Whole and Universal policies confuse the heck outta me!
Life insurance is a necessity, even though a large majority of Americans do not have a policy. Great video!
Says Robert the insurance guy 🙄
@@mr.yellowstrat3352 I guess if you are a billionaire and or just dont give a shit about your family having to deal with your debt then ya you don’t need it ….who wants to give their kids a generational wealth advantage right ?
@@mr.yellowstrat3352 I’m a new agent in Hawaii and being one of the most expensive states, life insurance helped families here (including cancer treatments) cash value was also beneficial which made the clients invests in more assets to earn passive income.
@@humanactivated1017 There are other ways to give your kids generational wealth besides insurance and/or being a billionaire
@@mr.yellowstrat3352 life insurance is kind jf a BS way and aren’t giving them a billion dollars .
As I approach retirement, ensuring the stability of my 401k after the turbulent year of 2022 is a top priority. I've come across stories of investors achieving up to $270k in ROI during this current declining market. Any advice on enhancing my ROI before retirement would be highly valued.
Many people underestimate the importance of advisors until their emotions lead to financial setbacks. I recall a couple of summers ago, during my protracted divorce, when I needed a significant boost to keep my business afloat. I conducted research and found a highly qualified licensed advisor. She has effectively increased my savings from $220k to $740k, even in the face of inflation.
How can I get in touch with your advisor? I'm interested in finding a more effective investment strategy for my savings.
Hello! Sonya lee Mitchellr is my consultant. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online.
Hello! Sonya lee Mitchellr is my consultant. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online.
Her name is “Sonya lee Mitchell” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I swear he turned orange 😂 near the end
He did haha. He went Donald Trump
Ha true
the absolute mad man! he actually did it!
😂 lmao
Lol. Thats right man. At 4:02 he changed the color
I love the video. I've been looking for something like this that's very easy to understand.
However, I wish that you had emphasized that term insurance in designed to end before life expectancy, making mostly a "premature death" insurance
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Dzrp0003 it’s true-I think about 1% of term policies pay a death benefit.
I like your view on that “premature death” insurance
With whole life, the insurance company keeps the “cash value” when you die. Dependents Only get the death benefit. Also, the rate of return on the cash value is very low at best about 1-4% while you would average about 10% in the stock market over the long term. Also, insurance salesmen get huge commissions and fees off of selling you whole life policies. Often the first few years of premiums goes into fees and commissions, not the cash value.
Please do independent research and do not take investment advice from insurance salesmen. They are not required to advise in your best interest
beautifully explained, sir....bravo.
LoL i’m a life insurance agent and I wish I got high commissions and fees
@@deus_vult8111 Either you're lying or you're the dumbest salesman out there.
Actually that’s not true at all . While obviously sales people get commissions for their work , agent to be licensed has to act in your best Interest . If they are not you can easily lodge a complaint with ( CCIR) .
Also what you are saying about the policy commission being high is BS . It is based on the value of the policy. And only a few percentage points . So obviously Life policies have more commission than term policies .
The insurance company pays the agent out of their pocket and then no different than a mortgage there is a higher percentage of your premium which goes towards covering commission and admin fees etc at commencement of your policy . Insurance agents are no different than realtors , the actual Commission rate is around 2.6% to 17% based on the policy and company . It’s paid out if first year of premiums along with your admin fees etc .
@@astroman30 it’s actually deceptive and misleading .
first off it’s not an investment product it’s an insurance , you know like house insurance or car insurance ? So the investment part is purely a benefit which actually is much safer than playing any stocks on the market to yield 10% . Take your stock portfolio to the bank and see how easy it is to get a collateral loan compared to a life insurance policy .
He forgot to mention that if you borrow from your whole life policy, you have to pay that back with interest.
So you are saying Details are important and painting the full picture as well? I hate when individuals don't include important details as you have stated. I find it unethical at a minimum.
You pay it back with interest, but the money in your account is still growing. It's basically getting a loan with 0% interest.
I'm a life insurance novice. This was super helpful
Did this video helped you on your desicion? Did you come up with something? I’ll like to have a conversation with you .
Just be careful with whole life from I have been researching the whole life charges an outrageous premium and that monthly premium goes into actually funding the let's say 200k death benefit you want for the first 5 or 10 years, so it takes that long to actually build your DB before your premiums start heading towards your cash value, and the your cash value is all yours tax free, until you want to borrow against it now the insurance company charges you a percentage to withdraw that money that is your money and also when you die it gets absorbed by the Insurance company, and your family gets the 200k DB....look into universal indexed life insurance
@@ML-ks2lj Well let’s not forget to make those investments too… as we pay for those insurances.
@let love lead great to hear what did you do? Do you trade? How were you able to pull that off.
it's better to buy term and invest the difference. Then you'll have a sizeable investment when your term is up and therefore should not longer have the need for insurance as you would be self-insured.
Keep in mind that investing the difference have a lot of issues as well:
1. The risk. You can gain interest all you want, but there's no floor to your investments. All it takes is just one bad drop & your investment & time is gone just like that. Example, 2001 & 2008.
2. What if your performance is not as good as you thought by the end of your term policy & you need more coverage? There's not a chance you can get another term. It will be more expensive because you age & your health condition is questionable, even uninsurable.
3. What is considered sizable investment? Crossing your fingers to have a great performance in your non-guaranteed bottomless investment strategy with the time given by the term insurance? Or having coverage for the rest of your life with guaranteed floor so that your money is guaranteed safe?
Buy term and invest the difference is great back then, when the interest rate is all time high, but not anymore. Most of the time, people who follow this strategy ended up spending the money they're supposed to invest, as most people have no discipline & self control. Also, this is one of the cause of the rise of unemployment. When people plan to retire with their 401k, IRA, or pension, during the year of 2001 & 2008, their portfolio went down so hard they can't afford to retire & have to go back to the work force. Baby boomers filled up lots of job spots when they're supposed to retire & ended up causing the younger generations to have a harder time finding a job.
However, if you're an economic savvy & great with financial strategy, don't need anyone to plan your finance, you're extremely discipline with your money, have elite level self control, have the mind like Warren Buffett, I would recommend to follow the strategy to buy term & invest the difference...but this section would be considered a unicorn.
380gb yu
Drefyxd your wrong about investing the difference there is a floor and you are safe. this guy is dumb having all 3 types of insurance. he doesn't even know what the best if only 200k in all those years that's a little bit.
Raul Hernandez tell me an investing-the-difference strategy that have a floor for safety
Drefyxd mutual funds
This video has helped so much. Taking the life insurance exam on December 5. I feel like I know the concepts, but the modules through the prelicensing course through XCEL solutions confused me so much. Thank you for providing clarity.
How'd it go? I take mine in a few days.
There is indexed universal life VL variable life there is whole life and graded life. Term and perm.
Best LI video I watch on YT thank you Sir
Why is everyone having a different meal at that dinner table? Mama don't play that.
They’re rich now. They can afford it! 😆
She the one who killed dad, so the insurance paid off 🤔
Very straight forward and easy to understand.
Thank you! This video really helped me to understand important concepts on life insurance.
Disagree that the best one is the one you own when you die. You buy life insurance to hedge against unexpected death. Just like car insurance to hedge against the unexpected accident. You don't buy "universal car insurance" to help replace your car when it finally wears out.
i need cheap life insurance
It actually depends. Every person is different. So for him, which it seemed he was basing his opinion, is the best for him and he recommends to others because it's the best for him. It all comes down to what your looking for in a policy.
Fortnikitabullion
Your analogy makes zero sense. Auto insurance is for the risk of an accident. It has nothing to do with the usefullness of the car.
You need a brain insurance cause you’re comparing apples with oranges...ppl get life insurance to protect family members from the expenses that comes after death.
Businesses can have a "key person" provision or rider in their policies so that if the insured dies or can no longer work then the face amount proceeds goes to the Business (who owns the policy) to find a replacement employee without having a big impact on the business.
Why doesn’t anyone talk about the fees if you pull out your money & how it’s like a loan with interest??
He forgot to mention that once you die, the family only gets the death benefit but not the cash value accumulated, you either get one or the other, which ever is higher, but not both.
Giovanni Avelar if he mentioned it he wouldn’t sell any policies 🤷🏽♂️
so? if you did term you wouldn't have any cash value either, at least with whole you have the option of cash value or your death benefit PLUS a level premium for life and consistent coverage... how is this everyone's argument?
I like his blurb about how wonderful his whole life insurance is. Don't know if he realized that over 25 years, he only saw a geometric average rate of return of 2.5%. Perhaps his investment was low risk and thus low return, but it sure hella isn't very sexy or comparable to the snp500
It's the high fees. All these whole life insurance charges high fees. It has terrible return overall.
chinesebaloni Completely irrelevant comparison… One is savings with no risk that can also be leveraged for other investments, the other is an investment w risk… Plus that rate of return does NOT include death benefit, which is probably double his cash value, and which would not be taxed.
Not saying whole life is better than the S&P… Just pointing out they are totally different asset classes with different benefits and actually can complement each other very well.
For instance, if you need income in a bear market, you can withdraw from life insurance and therefore don’t have to sell stocks when they are down. Also many business owners are now using whole life as collateral to borrow from banks at WSJ prime, which usually beats the hell out of equipment leases and other business financing. And if you’re saving for college in a 529… You will sabotage your kid’s chance of financial aid, whereas whole life is rarely considered an asset and can help families obtain grants or scholarships.
teetee tee if you die the first years of the policy and your family gets a death benefit, you probably won’t care that someone got a commission.
RENE Rivera When you apply for Financial aid through the FAFSA, a 529 is an asset that will count against the aid your child will qualify for. Only rarely does a college consider whole life insurance cash value as an asset. So saving there instead of a 529 can greatly improve a child or grandchild’s financial aid package.
@@thekatephillips How can you even consider that paying interest to borrow your own money for whatever investment is a benefit? That's more like a RIP-off. Not to mention, when you die your family gets the death benefit and not the cash value.
Buy Term, invest the difference into a mutual fund, and you will have a lot more than 217k waiting for you. He's making less than 5% growth when the market average is almost 12%. When you have enough money to cover your expenses, lets say a million there is no need to have any life insurance ever again.
Do you know what happens to mutual funds sitting in a bank when you pass away? All your assets are frozen including bank accounts, stocks, mutual funds etc forms part of your estate which is then subjected to probate. If you have a will in place, your estate might get settled in about a year and it will go to your beneficiaries after all the taxes and probate fee has been paid and deducted. If you don't have a will, it can take n number of years. Life Insurance and seg funds (mutual funds through insurance companies but with guarantees that mutual funds do not have) go to your loved ones within 30 days. The question is, do you want to put your loved ones through financial stress when they're going through such a huge emotional stress?
Is it illegal to send a check to an insurance agent stating it's from Anthem when it's not.
I’ve heard when the policy holder passes the family gets either the cash value or the death benefit and not both. Is this true? Why does save Ramsey hate whole/universal life insurance so much?
Raftika that is true unless they get a universal option b which comes with an extra cost. Either way. Its a stupid idea. Paying extra to keep your own money back? Makes no sense
I have a question can life insurance pay for cryonics?
Can someone tell the owner of an insurance policy it is cancelled then alter the documents and become the beneficiary of someone else's policy. Me thinks it's been done.
Excellent information and well presented.
Thank you so much for making this video.
It helps us decide what kind of insurance to buy.
God bless.
Antonio Moniz
please consider the fact that permanent insurance is about 5cents for every 1$ of whole life. Meaning you can get the amount you really need for an affordable price. Also, if you access your money as he says you will need to loan it to yourself at interest payable to the insurance company.(?) if you have loan out and pass away, your death benefit is lowered by your loan amount. 1 last thing. If you pass away, your family either gets the insurance or the cash value. They do not get both. So if you have a 100,000$ policy and 80,000$ in cash value when you die. your family gets the 100,000$ but the company keeps 80,000$,. so how much insurance did they really pay out? Term insurance is a lot less expensive, leaving you enough money to invest per month into mutual funds or other investments where it can grow significantly better than in an insurance product. Insurance is supposed to protect your building money, until you enough of your own money and don't need it anymore. I hope this helps
Hey l Sell Life Insurance 4 Primerica The most Cheapest Life Insurance Company There is.& I'm looking 4 Good People That Would Lile 2 Join.
@@deondavis7183 get your facts straight! I replaced a 3 yrs old primerica term policy, doubled the death benefit and it was still less than what the client was paying for.
I would be pretty careful buying any form of Cash Value Life Insurance.
Why?
@@robertkaraczun8906 because it's what they don't tell you about Cash Value (Whole Life/Universal Life) that one should be careful with those policies as the "Cash Value" is money YOU pay into the policy that they let you BORROW when you needed, and on top of that they charge you interest on YOUR money that you put in when you decide ti take it out in the form of a loan!
@@g-boyog8825 This is policy dependent and not all policies work like that. Yes a portion of the cash value you have access to is your money, that is how investments work. Many policies have a zero fee cash value withdraw so long as it is under certain terms and conditions.
Thank you so much for this video. It helped me alot
This is a pretty fair and informative video. One caveat: a lot of universal life policies have collapsed, because the internal costs of the policies keep rising as people get older.
IMO the best types of term insurance is convertible term (fairly cheap term insurance that can be converted to whole life if you wish). It’s good to keep your options open and it’s a way to have guaranteed permanent insurability without the high cost of whole life in the early years.
(I don’t sell life insurance, but I write about it and I own convertible term).
Kate Phillips Thanks! What firms would you consider to be market leaders in Whole and/or Term insurance ?
Absolutely correct Kate!
moviedude22 Dude, didn’t see your comment. Partners for Prosperity is a great advising firm for whole life/convertible term... Kim Butler’s book Live Your Life Insurance is very helpful.
I would have to agree. Term with convertibility is the cheapest in the long run. Whole life costs a lot more and the cash value is pretty small compared to any kind of securities account. If you buy term with a guaranteed renew ability rider you can renew your term at the end of it even if you are on your deathbed because the rider guarantees your premium will only rise because of your age. And as far as your question @moviedude22 I don't know about firms or whatever but recently I have been working with a company called primerica and they sell term policies with some really nice benefits like a built in renew ability rider and a built in family rider. And they are quite cheap. I've personally seen a lot of people who have switched to term insurance and saved 100+ dollars a month. Plus they sell 35 year term and other companies mostly do not.
hmm interesting 😁 converting sounds good
With Whole Life Insurance, if I access my cash value, does that cancel my insurance? If I die, what happens to the cash value? Do my heirs get the insurance value PLUS the built up cash value?
If you cash out completely, you lose the insurance. If you die, the cash value goes to the insurance company and not to your heirs. At least that is my understanding based on this video:
ua-cam.com/video/ZFLAsu97C9M/v-deo.html
If you access your cash value, it does not cancel your insurance. But, you do have to pay that money back as you are borrowing in the form of a loan. The benefit of this is your money is still growing in the policy at the same rate of the loan you took out. So you are basically borrowing the money for 0% interest. When you pass away, your heirs will only receive the death benefit of your policy, which will be more than you ever put in.
Ah, so that's how its done, kinda. So what happens after you pull out some of that Cash Surrender Value? How does if affect your premiums? Your death benefit? Any other part of the policy? Does the cash surrender value somehow return? Does it even go down after you pull some out? What strings come with the CSV?
So whole life....all the cash value when I die go right in the insurers pocket, not my families and if I want to borrow against my cash value I paid into I also now have to pay a percentage to pull that money which is essentially my money already right? So I get loan sharked on my own money? And again my family only gets the 500k, that took 5 to 10 years to build through the premiums, and zero from the cash value....hmmm how about an indexed universal plan vs. the whole life?
You're right....unfortunately, IULs are garbage too with their high fees.
Great materials. Starting my career in the insurance industry. Everyday I am doing case study, and surprisingly, alot of people have bought life insurance to help the family get back up. Especially widow with 2 kids to feed.
Excellent primer. Well done.
Basically if you have cash flow problems term is good for you.
What he didn’t mention is that when you die they keep all of your cash value savings. Oops.
exactly!!!
Won't they pay your face value plus cash value if there's increasing death benefit?
Well let's consider this, in most scenarios you will usually have less cash surrender value than the coverage for the first couple decades of ownership, towards the end of your life your cash value will slowly match up with the coverage amount. Plus the fact that your money is growing and you only pay for 20 years, in either case, your family will be paid more than the money you put into your WL when you die. Do you wanna be paid more or less than what you put in?
@@lewism.3333 yes death benefit option b. From universal life policy.
well you wouldn't have that option anyways with term so what's your point?
Excluding cumulative dividend earnings? An internal rate of return of 4.54% per year is not bad if policy cash value alone.👍🏼
217,000 after 25 years? That is only equivalent to 4.8% YTM for all your input. Your other investments must be horrible.
Better than a bank. One plus is that he's been gaining money in a life policy. Banks will somehow take your money
Kurosu Ha you really can’t/shouldn’t compare whole life to other investments… One is savings with no risk that grows tax-free and can also be leveraged for other investments, other investments typically have risk, are taxable and aren’t as easy to leverage… Plus that rate of return does NOT include death benefit, which is probably double his cash value (might be 100x cash value the first year) and which would not be taxed.
Not saying whole life is “better” than other investments… Just pointing out they are totally different asset classes with different benefits and actually can complement each other very well.
For instance, if you need income in a bear market, you can withdraw from life insurance and therefore don’t have to sell stocks when they are down. Also many business owners are now using whole life as collateral to borrow from banks at WSJ prime, which usually beats the hell out of equipment leases and other business financing. And if you’re saving for college in a 529… You will sabotage your kid’s chance of financial aid, whereas whole life is rarely considered an asset and can help families obtain grants or scholarships.
What kind of other, risk free investment would give you 4.8%??, Whole Life insurance is absolutely risk free, yes, (as risk free as any other Financial institution)
Kate Phillips
All of the things you mentioned are not necessary if you’re financially savvy,m which will make financially independent and self insurable. By term and invest the difference is the way to go. Stop paying insurance companies fees for something you can do yourself!
@@MultiSanchez1995 I like this!
Did you hear him say no matter what your family will get the death benefit when you die? He didn't say they will get both the insurance and the saving......
zolianu007 the total value of Life insurance is always the face value, which grows over time. The cash value is actually your “equity“ in the policy, the portion of the death benefit you can access through loans, withdrawals, or if you cancel the policy. It’s a little bit similar to how equity grows as you pay down a mortgage.
@@thekatephillips It's not at all like equity in a house, because when the house is paid for and you die the mortgage company doesn't keep the house.
Ryan Swope let me try to explain it another way. You build up equity over time in a home. If you sell a house and your mortgage is equal to half the value of the home, you don’t get the whole sales price as profit... You get half of it, because that was your equity in it.
Whole life is a bit similar (though it’s not a perfect metaphor). The face value or death benefit is the entire policy value. The cash value is like equity-it’s the portion a policy owner can withdraw or borrow against. And as your cash value grows… So does the face value amount. But the policy is never worth more than the face value, just like a home is never worth more than its market value… Regardless of how much equity you have in it.
Hope that helps! I’ve been writing about life insurance for 10 years, and it took me awhile to understand whole life.
Kate Phillips once again. Cash value isnt under your name. Thats why you ASK for permission to get your savings and can be given to you whenever the company feels like it
What happens after your term is over (talking about the term life insurance) and you didn’t die in that time frame? Does the money you paid so far just get wasted ? Thank you
There's a possibility you can renew your policy. No money is really wasted because you've been protected during that period, when in most cases, your family really relies on. What I'm actually doubting is some of the information given for whole life/universal.
You can convert your policy to a permanent policy, but if you don’t, you would no longer be covered by insurance. I personally think permanent insurance makes more sense, but people have all different kinds of reasons to get different insurances. Just depends on what you need!
@@hushnetwork what are you doubting? Everything he said is true
He made right about 5% on that whole life policy "investment"
Made right that it makes a massive amount for him to take when you die....same thing when you need to take it out for any reason at any time when they end up charging you a percentage to borrow against it loan sharking your own money to you
Nope
When term insurance ends, do you get your premiums back? With interest? Are there any penalties?
J you do not get your premiums back? You pay for car insurance dont you? When the term is up do they give you money back if you dont crash? No. Its a service/product. Its much less expensive. Instead buy a term policy for a lower cost and save up money in a retirement account
Great question J. You do get it back only if you have return of premium (ROP) term life insurance. Feel free to reach out to me at iamreneantoine@gmail.com if you have more questions or need clarification. Take care.
If you get a Term policy with ROP aka Return of Premium, then yes you can get your premiums back. Premiums are paid back minus the cost of insurance usually. Also, most term policies these days offer convertibilty, which means you can convert it to a qualifying permanent product without evidence of insurability. This can be greatly beneficial if health has declined since the Term policy went in-force.
This was very helpful!
in Kenya the two is the term, endowment and whole life. are they of the same explanation?
if you die prematurely with your permanent ins, does your beneficiary get both the death benefit and your cash value? or does the company keep the cash value portion and only pay the death benefit?
They only get the death benefit & will lose any cash value if there is any. That is a waste & a rip off to pay that high premium
Amy Tennessee
Death benefit will include, but exceed, cash value and be tax free to heirs.
@Amy Tennessee I pay 110 a month for a 500k whole policy.
Great video 🙌😃! Explained everything in simple terms 👌👍. Now I know which life insurance to choose 🤗.
Really nice content!
In whole life and universal your family doesn't get the cash value/savings. Your paying for both but your won't get both.
Because you are receiving a much higher amount as death benefit, which is much more than your cash value/savings.
You didn’t mention private placement life insurance.
So if he paid $4,635 and year for 25 years in total he's paid $101,125. How can he cash it out for around double what he's paid? Did I miss something?
Brent Burgess it’s investment. A portion of your premiums are paid into an investment account and it grows over time.
@@ivypark79 thank you! Maybe I'm wrong but I don't think he was clear on that.
He will be charged interest on his on cash value to pull any money out of is. The dude is a fuckin liar
Does your Life insurance policy have value and maybe sold
Many life insurance companies specialize in different types of life insurance policies. It can also be difficult to know which life insurance company can offer you best types of life insurance for your unique planning needs.
Eric Van Haaften oo
Thank you for sharing
(4:15) How many times does buddy plan on dying??? Three life insurance policies smh! and Term is the way to go.
I think it was a flex on us viewers
Each policy has different tax benefits. It's a way to protect what he already has.
Great to have a basic break down. Glad you put this up. Puts the basic info out there
Is this whole life concept available in other countries except the us, for example germany?
I couldn't say for sure, but certainly it is not unique to the US. I know it is available in Canada. But since I'm not licensed and don't sell insurance outside the US, I couldn't speak to the the availability of any particular types of products in any particular county.
Thanks for the reply! Is it maybe possible to buy the insurance from outside US?
Some, not all, non US citizens can buy US based life insurance, but they do need to be here in the US to make the purchase. There are also life insurance companies in other countries that might be a better fit. Each country has its own laws and rules regarding life insurance and how it may work there.
Great Video - however we sell 15 life apps per day, then after a yr we talk about converting to a more permanent plan
what does cashvalue mean
Im 23 years old but dont know if i should go through and getting life insurance this is so confusing on witch one to get
What you need greatly depends on your personal situation. I typically lean towards buying term life insurance (extremely cheap, especially at your age) for a long term, and take what you would have spent on whole life and invest it in the market. I'll use the speaker's own situation. If he had bought a term policy 25 years ago for $50 and invested the difference (about $336/mo) getting 8% average return from the market, he'd have over $300,000 instead of a little over $200,000 and he would OWN the investment. Technically speaking the insurance company owns his cash value now until he cancels it. Find me on FB and send me a message if you have questions --> facebook.com/ryan.swope.92
The best to buy at your age is term life. It will be very cheap! And you save and invest in proper securities. See term life as an overall financial plan not in isolation. You can choose one with ROP return of premiums option where all premiums paid are returned if you outlive the term. The cover period will depend on when you think you will be financially independent and self insured.
Why is it called "Cash Surrender"?? Where is the cash in the cash value coming from? How much coverage of you have with your whole life policy? Are you paying that annually or monthly? I have so many questions. Awaiting a response.
I am not affiliated with the makers of this video, but if you want some common sense answers to your life insurance questions, shoot me a message on FB. I have a degree in education and have been teaching financial concepts for the past 6 years. I don't recommend anything I don't thoroughly research and believe in for myself and my family. --> facebook.com/ryan.swope.92
My mother passed away and she had a life insurance
policy on me. She took out the policy when I was a child,
so I don't even know what type of life insurance I have. I
didn't pay the policy for 5 year after she passed. I paid it
on the 6 year. How does that happen?
Im sorry about your mom and depending on the policy you may be owed money. If it was temp through a job or temp maybe nothing owed.
You said whole life insurance is the most expensiveness out of all of them, which isn't true. Universal life insurance or UL is.
most expensive.
Care to explain how you came up with that opinion?
UL stand for Universal Life
UL and whole life are permanent life insurance. UL is the most expensive but you'll get the best return and rates but premiums are costly. UL is the Rolls-Royce of insurance
Want to know more about insurance and insurance benfits? Just check out our article: instaloverz.com/learn-more-about-insurance-benefits-of-insurance-and-types-of-insurance-policies/
So what happens if your term ends and you don’t want to pay it no more? Do u get a partial return or can turn it into a ira account?
If your terms ends. Thats the end of the policy. Insurance companies will re-rate you depending on the current health conditions & age. Its best to get a permanent life when you are young !
@@Eyanlakhani The idea of term insurance is to get cheap coverage while you invest and grow your wealth. If you have an average income and a few hundred thousand saved outside of other typical retirement plans, what do you need insurance for? If buy term and invest properly, there is typically never any need for any type of whole life policy EVER.
Great video! 🙌 It was very informative 🤓 and helped me understand the different types of insurance better. Thank you! 🙏
Great break down
Thank you! This was very informational.
There was a lot of information left out. Highly biased toward whole life which is notoriously high commissions and fees, and notoriously low returns when compared to other typical investments. Also, your cash value can be "ACCESSED" at any time for any reason, but you have to pay it back in the form of a loan with interest. Guess where the interest goes? The company, not you. When's the last time you loaned money from yourself and paid someone else the interest?
Not true. Commissions and fees aren’t that high.
Wonderful explainations!!
Hi Daniel,
If you'd like to learn more, I specialize in Life Insurance and work with CFPs with decades of experience. If you'd like to talk send me a message and we'll set up a call.
Best,
Joe
@@josephsayad4685 Hi Joe, yes Id love to. How should we proceed?
@@dakotadak100 Please send me an email to jsayad92@yahoo.com and we'll coordinate a good time to speak.
Thanks,
Joe
@@josephsayad4685 if this is about buying insurance we have plenty but thank you
@@dakotadak100 You two going to make out?
Could life insurance get you and rich and how is it paid to you ?
I specialize in Life Insurance and work with CFPs with decades of experience. If you'd like to talk send me a message and we'll set up a call.
Life insurance is not an investment, Thomas.....buy term and invest the difference?
Great video! Thanks for sharing.
Good video 🙏
Great vid
You explained this so well
I agree I have whole life. Got it b4 age 50..more like at 42..my premium is $32.50..and I've never had to borrow against it. So theres money sitting at my disposal. So hes correct whole life is the best as far as any return.
@mmtaxconsultingllc2986 Well, in that case, I have a beneficiary already set in place years now and plus the point is this why take the money out before I die???..insurance is solely for the purpose of paying for your "burial-"👀
I want to leave some money to my kids and husband when I die.wich insurance is better? And wich company’s is most oldest?
what happens to the cash value that has accumulated? when I die.
cash value is what you get back if u cancel your insurance. When you die your beneficiaries get what ever coverage you paid for, not the cash value
That's pretty sad. 25 years at that premium and cash surrender value comes out to a 4.6% rate of return. Why would you be impressed about that when you could make so much more in other investments. Even if the investment gurus out there are wrong on their high returns suggested you can still do better than this. My 401k took a hit in 2008-9 but came back just fine. When I learned more and changed my mix I made far more. Last year was freaky and I made close to 20%.
Thank you 🙏🏽
Term insurance is for the people in the age group of 25 -30. Permanent insurance is for people above 40 years of age. Premium is low in term insurance compare to whole life insurance.
what happen to the 30-40? haha
4:02 y u turn orange?
So you said you have three life insurance, so that mean you can have more than one?
Any licensed agents in Tucson Arizona?
Alvaro, we have many licensed agents in Arizona. Please send me your contact information and what you are looking for and I will see that it gets directed to the proper agent. ggarbowicz@accuquote.com. Best Regards, Glenn
Alvaro Astorga Papers please
Nice explanation
04:15, was the a flex on the viewers?
Pay 20 times more in whole life insurance than term insurance because of this magical "cash savings." Thus, the only way to get money out of MY cash savings would be to BORROW against MY OWN MONEY (paying it back plus interest) or cancel the policy paying a huge "surrender" fee. Plus, when I die, the insurance company KEEPS the cash savings or they deduct it from the death benefit. Whole life insurance is one of the most expensive policies to buy while paying out high commissions to salesmen. Garbage.
Help! I got lost when he said you can pay premiums in 10 years and you own the policy. what does that mean if anyone can explain a little better
It means you can pay more on the front end to not pay on the back end. A horrible inaccurate example might be paying $100/mo for $100,000 of coverage for life, OR paying $500/mo for 10 years and then you never have to pay again but you still have coverage til you die or cancel. What he (intentionally I'm sure) neglected to mention was that if you'd take that high premium you pay for 10 years and invest it in the market, you'd likely be much better off and wouldn't even need life insurance anymore. PM me if you have questions --> facebook.com/ryan.swope.92
Great information and we do this too!
Why don't they/he mention if you dip into your Life Insurance to take out $$ You'll have to pay Fees??
UL is universal life. A few types.
cash value is by far the worst "investment" anyone can make...
Daniel Rivera why is that?
No it’s not.
whats the best type of insurance for a 21 year old ?
Term Life insurance.You can get covered for $500,000 for easily $25-$30 a month. I went with Zander Insurance. My wife and I got term insurance a few weeks after getting married.
Absolutely, stick with term. If you have a solid job and aren't strapped for cash, begin investing now. You'll thank yourself later in life.
@CityKids you should get a indexed universal life for 100,000 coverage since you’re a female it’ll be cheaper and you will be paying approximately 40$ or less
I’m 26. After survey and look for long term benefits...I’m taking permanent one with investment-linked
CityKids it’s cheap for us to take permanent or universal. Term insurance is cheap for older ppl and maybe don’t have budget one.
You forget to mention that the cash value on whole life insurance? Yea, it’s taxed. And if you die before claiming it, your beneficiary doesn’t get it!!! The insurance company keeps it!!
I've failed my producer's life accident and health exam twice. I Ned serious help or my new job will drop me 😢
Is it legal to cancel a person's life insurance by hiding a drafted premium and then threatening to kill the person through the postal mail? Yep that's illegal.
Term life is the way to go!!!
Nice video
Is it legal to access the C drive of an insurance agents computer? Yes I have proof.