@@shayl0tus hard to say, it's different every where you go. Nothing simple about the insurance game. You have to do your due diligence and get quotes, figure out what debt you have that will be left to family, figure out the cost of living month to month for your family after you pass away figure out cost for schooling for your childs education like colleges how much that would be for a 4 year thing figure how much it'll costs to bury or burn you figure the cost of the get together with food services things like that, figure out your monthly spending habits as a whole family with you included and take an average from the year and then make sure when you die that can be replaced. My situation I am the sole provider I need to make sure my wife and children are set
@@shayl0tus the rating is based on your lifestyle, medical history or what kind of life insurance you have and for how long you are paying for. I teach all kinds.
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During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?
MAN, glad when you said "sponsored video" you didn't follow it up with a life insurance company pitch 😂 Do your thing man, make that ad revenue money!!
I took a class for life insurance to be primerica agent. Class was so fast and I couldn’t catch all so search for it and found you. Thank you for making it clear in 10 mins.
I sell big Whole Life policies to a small segment of the economy. It's a very niche product which adds huge value to people who use it properly. If purchased under false pretenses -or- if used inappropriately, it can easily be a terrible waste of money. It depends on how it's positioned. Transparently: there isn't any vehicle in the US tax code that is efficient for everything. Otherwise, everyone would only use that hypothetical vehicle. Does my rationale make sense?
Chris Invests - Personal Finance Videos I didn’t know that. I learned that today. I only have 250k and my husband earns 150 a year so it’s not much I guess in comparison.
Good presentation. But let me clear here for general public in layman language that term policy is for specific purpose which vanish every year like for death coverage or hospitalization cost and premium is an expense here not saving, which increase as age grows. This policy usually cover in group insurance by employers for employees. When employee leave job this policy closed. While whole life policy is for family financial protection and investment. Its benefits enjoy during life time and on death for example children's higher education or marriage, retirement, hospitalization, buying property, jobless period in addition to family financial protection in case of disease, disability or death. Here premium is constant and is long term saving with good return. SO WHOLE LIFE POLICY IS NECESSARY FOR EVERY WISE FAMILY AND FAMILY BUSINESS PERSON. Note My above explanation is on Pakistan perspective not USA. I suggest all Pakistani Americans to get efu Takaful Plan from Pakistan to enjoy multiple benefits.
I like how you explained the term vs whole life insurance . At the begging I thought you were one of the whole life sales guys who try to paint the on how whole life is good but I am glad I listened to you. It was very clear and honest. Thank you. We need more people like you that will tell it like it is .
You are correct - he's not biased toward whole life. He is, in fact, biased toward term. Just as bad, but just in the other direction. Sounds like you're on the term life team - good for you. If you want an unbiased point of view, let me know.
This guy is so wrong its not even funny he should have his licensed taken. You will pay less for a 20 pay whole life than you will for a 30 year term and you still get to keep the coverage.
The problem is there's no hidden information with these types of policies you just have to ask. Whole life builds cash value whether you want to use it or not. The biggest value is that it's permanent and it locks in your age and health. If you never touch the cash value your coverage is worth the full value from the day you are approved to the day you die
Marko, I can’t thank you enough. I have 3 kids and been thinking a lot about something happening to me and leaving my kids with a financial burden, it’s not cheap to die. With that being said thank you for providing this education to people like myself I appreciate you, you are making a difference.
ive been looking at dropping our whole life insurance policy for a term policy and then invest the left over into my current IRA and this has helped make the decision clear. very well done and thank you!
while whole life truly does suck, I wouldn't cancel it until your term life policy is fully active because the application process can take a few weeks depending on the company you go with. It's not very likely to happen, but you'd be hating yourself if something (heaven forbid) tragic happened to you or your family.
Permanent insurance is great product until you have the cash flow and the income to do it. First, make sure that you're contributing to everything that you can where you're going to have tax advantages like maximizing a Roth IRA and if your employer offers matched 401k, max that out and if you have a death benefit need, go with term. Then after all that and you still have cash flow left to invest for the long term and want to grow your tax-deferred and safe dollar segment then you go whole life.
Ryan Burt - What are your thoughts on TAX FREE WEALTH & LIFE INSURANCE ?!💰🧠💸 •CASH VALUE - (E.I.U.L.) & (M.F.T.A.) ARE SACRED FINANCIAL COWS; THAT ARE PROTECTED, BY THE IRS TAX CODE CITATIONS: * The Tefra Act of 1982 - 72(e) , * The Defra Act of 1984 - (7702) , * & The Tamra Act of 1988 - 101(a) . These acts; allow one to ACCUMULATE, ACCESS, & TRANSFER their money TAX FREE. 😉🤙🙂 . As ADVANCED MARKET & SOPHISTICATED life insurance agents; we are suppose to help show people, how to Make, Protect and Move their money from UNSAFE places, such as (401k's, 403b's, TSP’s, Pensions, Stocks, Mutual Funds, Cd's, IRA's, Social Security, etc..) Which are all exposed to the volatility risks of the stock market, inflation and Taxes. 😬 . And Help place them Into SAFE places, such as Life Insurance; giving you protection from the stock market & a guaranteed Compounding Interest rate of return on your money! (TAX FREE!!!)😉 with, the 0-3% GUARANTEED MINIMUM as a floor protecting you from financial devastation! (COVID-19) . So, when the stock market corrects itself again (Crashes) as it does on average, every 7-10 years. (the last one being, the 2008 housing bubble burst.) Your money and assets, along with your family, will all be protected in the event of that crash; due to the Guarantee Protection of the 0-3% as a floor, Preventing you from losing your money! . LIFE INSURANCE = SAVINGS ACCOUNT?! . With banks giving (1%) interest back and inflation being at (3.5%) plus, taxes at (1.5%) = a total of (5%) against your $ By Default, your losing (4%) of your money every year just by having it in the bank! . HOW MUCH LIFE INSURANCE DO WE NEED?! 🤔😀 (EXAMPLE): (apply the D.I.M.E. Method in order to help calculate, exactly how much Insurance is needed.) . Debts (all debts, Credit cards, etc..) Income x(10) or x(20) years Mortgage Education x(# of children) $60k per child . Add up the total and that's your Life Insurance necessity. . 💥THE POWER OF LIFE INSURANCE💥 Did you know?! After the Collapse of the 2008 housing market bubble, a total of $5 TRILLION DOLLARS in Pension funds, 401k’s, Real Estate Values, & Bonds, just up and Disappeared?!😳🤬🤯 Can you imagine that?! . Just how bad was this collapse?! 8.8 MILLION people lost their jobs; and 6 MILLION people lost their homes, and that’s just in the UNITED STATES!” 🤭😱 ($19.2 TRILLION DOLLARS 🌎 WORLD WIDE!) . THINK 2008 WAS BAD; WAIT UNTIL, YOU SEE WHATS COMING?! THE EVERYTHING BUBBLE?!!😶 If these crashes / collapses / Market corrections, happen so often; this means, we may be facing another one here in the near future, right?! . 🔥THE PENSION CRISIS🔥🏦 . If you think you can still retire with a pension plan; then, you may just be in for a rude awakening. 👀 Allow me to share with you why you should begin to rely on yourself & not the government. . Most Americans are now concerned; that company pension plans & Social Security, will not be adequate in providing them with enough income in their retirement years. Their concerns are warranted; and rightfully, so! . According to an article on barrons.com; Social Security benefits, will start to exceed the programs cost in 2020, & the program will deplete it’s $2.9 Trillion reserve fund in 2035. . The reserves will run out a little later than what the trustees of Social Security & Medicare projected last year; however, the bottom line is still the same. The programs deficits appear vast; making it clear, that the public should expect smaller benefits, higher taxes or more than likely, “both!” 😲 . Over the past 40 years, Congress has approved increasingly beneficial retirement options, designed to encourage Americans to save on their own, for their golden years. . Meanwhile; no congressmen, will dare utter the fact that with mine blowing numbers of TRILLIONS & TRILLIONS of unfunded obligations; such as, Social Security & Medicare, which have now become described by many as a Ponzi scheme, that can never be fixed. . Congress has covered itself w/ retirement legislation. So, much so, that sometime in the near future; 10 to 20 years from now, when the government system inevitably breaks; congress, The institution will be able to shake it’s finger at the American people, and point the finger back to 401(k)s, IRAs, Roth IRA‘s, & the similar in between of products they have created. . The message will be, that the benevolent Congress gave the masses a way to save for their own retirement, years ago! 😯😶 . What will not be addressed, is why did the government continue to take 15.3% in PAYROLL TAXES from workers & businesses for a failed system; However, that will be an issue between you & the ballot box. . The point here is; that to provide for your own retirement is prudent, as it is in all facets of life, to rely on yourself & not the government. . I hope I was able to help.. Much Love ❤. (Instagram) 💪🏼@TheFinancial_FitGuy . Remember; He who forgets the past, is bound to repeat it!” 😳
@@danielkicksable That entire last 3rd seems like a scare tactic to sell life insurance. None of this explained to me how life insurance will protect people from the incoming pension crisis. I mean unless if the stress of the pension crisis and your other account failing end up kill you from a heart attack. but seriously where and how do life insurance companies insure 0-3% interest on the cash value. maybe I misunderstood this part or one of the acts/bills/laws you cited protect or forcibly guarantee the"Guarantee Protection of the 0-3% as a floor" you mention. But then you mention the government system will inevitably break so again, what makes life insurance such a glorious shield to protect your wealth, what exactly protects life insurance from what will kill everything else? I'm honestly asking to become informed as I don't know if I should keep my Whole life or not but you're defensive comment as a sales rep does not feel very informative
Eric Arosemena - firstly; I am not a salesman, I am a state appointed field underwriter. Big difference. If you’d like; I’d be more than happy to educate you. Unfortunately, 9 out of 10 people, will not know this information. In which, I can understand your lack of knowledge in this field. After all, it’s not your fault, school does not teach this subjects or financial strategies I’m referring to.
I went with 35years term with living benefits at 38$ a month & 20$ a month for 200k Accidental D&D. I’m turning 27 and I got it when I was 25. The way I look at it is JUST IN CASE since I have a daughter and son to worry about.
I was sold a whole life policy post-recession in my late teens. My financial advisor played on fear of the market crashing again, stating "whole life policies can't dip below a 0% return." What she didn't communicate: 1) The amount of fee's associated with whole life plans + the front loading of my premium going to death benefit instead of the cash value. 2) The fact that I would be paying interest to borrow my own money. She only mentioned that its "tax free!" Early on I realized my cash value was not moving despite the market performing well which prompted me to read through the fine print (hidden on the financial firms website). Once I confronted her about the facts she recommended I seek guidance from another financial advisor. (LOL) Lesson learned, thankfully I was only out ~$10k. I cashed out and invested what was left in Vanguard index funds and have enjoyed several double digit return years with near 0 fees. It's sad that these advisors are mooching on the middle class. Thankful for videos like these, educate yourself!
Whole life is not much of an investment than it is a savings vehicle it's a fixed account on average earning 4% it's a great alternative to a bond CD or a savings account it's not meant to keep Pace with a mutual fund or a stock portfolio but you don't ever borrow your own money you take a loan against your paid up insurance once you build enough equity
@@haynej3 whole life is definitely not for everybody it's specifically designed to provide safety liquidity and guarantees not 10 or 12% rate of return it's a great alternative to other fixed accounts it's not meant to outperform the market
@@429mas with your fees and such, are you really earning even 4%. Whole life barely does better than that in best years? Which Whole life are you using? Any individual with a mentality to have ownership in ones finances can make investments and earn much better than whole life insurance products. It is truely a sucker's game. Basically slightly better than just parking money under a mattress or in a regular savings account.
From where I’m from our whole life plans are limited pay (which means you pay for a limited number of years 10,15,20) and still get covered for life compared to a term in which yes you do choose your term (10,20 years) however it doesn’t cover u for life. In which is akin to renting a house vs buying a house. Now worse case scenario is when ur term plans comes to end (your renewal obviously sky rockets ) and the very worst..is you don’t renew and something happens.. So i always believe its best to have both to complement each other ...my humble opinion that is. Cheers
What a horrible example you gave. Whole Life cost at least 20 times more in premiums than term. Plus, when you die, the insurance company KEEPS the cash value that you've been paying in all these years and only pays the death benefit. Sorry, scammer. Try again.
You are better off financially getting term life for 30 years until about your expected retirement age. Invest the rest (difference in what you would have paid for whole) and by the time the term life expires, you will be "self insured" and will no longer need life insurance.
Probably smart to get Term life when you hit 40-45 and get a 35 year .. if that’s in the 20-40 dollar range it’s worth every penny.. and now eat whatever you want if you make it past 80 god bless 😂 but then I would also look into a cheap whole life to at least leave something behind
Damn recently got my whole life policy they say i have 10 days to cancel. Now its all here on paper it doesn't seem as good as i thought. Thank you for the video explantaion. They caught me on a happy day
@@astroman30 - I’m sorry your brain can not comprehend this so called “ Boring Thesis” If money & Tax free wealth is boring to you; then, I guess I’m bored in an abundance of wealth. 😉 which makes me concerned for you and your demising financial future eroding away. I really do hope you change your horrible mindset; because, it is definitely skewed in the wrong direction, for your sake anyway. 👌
👌I hit the subscribe button right after watching this video. I'm 46. I think that I will go with the "term life insurance" I will save the video so that I could watch it a few more times before making that decision. Thanks a lot!🙏❤
The modality of your voice and the speed made this video much comprehendible, i could follow you along the way round of the video... I received a message from a recruiting manager of an insurance company so searched on to have more knowledge with regards to it, kudos for the clear content 🙏
You did a great jobs explaining the difference. If you get to 60 and you have to renew your Term insurance policy, that means for the past 30 years you didn't make any money off of your investments, which is almosts crazy to think of, because all you had to do was put in the maximum amount for a roth IRA for 30 years and you would be a millionaire.
@@khy7672 Then my wife will be well off, because my current Term policy will pay her exactly $500,000. I think she'll be well off along with our real estate investments, Roth IRA's and 3 pensions. If I were to die after 60, then she'd be well off also. So not sure what your question is?
There are a couple problems. First is that it is marketed as an investment product as well as an insurance product. The second, and more important to remember, is that it does a lousy job at both. I was unfortunate to buy into a whole life policy but fortunate enough to get out after eight years. In those eight years, my return was around NEGATIVE 13%. Investing the premiums in a term life policy and the difference in a Roth IRA will do your beneficiaries far more good. Your "financial advisor" loves whole life because the commissions and fees are so lucrative for them and their firm.
Sold insurance, whole life commissions were nice to sell. There are different life insurance policies that tie into the market to give you a better return. More complex for people to understand so they’re not as popular. I myself have a term life policy. And some companies will let you buy another term policy at the same rate. Good stuff though!
Yea, I believe you can buy 2 life insurance policies in 1 yr, so you can have multiple, but like the guy said in the video, I guess it just gets more expensive to get term life the older you get, due to higher possibility of death
No I completely understand life insurance. But to sell someone an expensive cash value policy when you own term and invest the difference yourself? That should tell you everything you need to know right there. Cash value policies "sound good" and conceptionally make sense, but they are a nightmare contractionally. Clients always end up under insured and over charged! But hey at least the agent made a fat commission instead of doing what is right for the consumer
@@JeremyMcTaggart That's right - whole life insurance is a complete ripoff. You could buy a 25 year term life policy and with the savings compared to whole life insurance invest in an SP500 index fund. For a $500,000 whole life insurance policy on average the insurance company is making $2,500,000 by investing all your premiums over 30 to 40 years before you die. Sure some people will die earlier than average and the insurance company will lose a little but for those that live to average or above average, the insurance company will be only paying out about 20% of what they made by investing the money. Also, with super high premiums with whole life policies if you can't make the monthly payment at any time for example due to losing your job, you will lose the policy. Every dollar invested in an SP500 index fund will grow to about $30 after 30 years. Most people don't realize how this makes such an impact. Also, if somehow everyone died early (far less than average life expectancy) and the insurance company did not have enough money to pay out claims, they could just declare bankruptcy.
So what happens if you have term life insurance policy for 20-30 years and the time is up and you live beyond the 30 years. Do you still continue with your coverage? How does it work past the 30 years?
@@theresavisser6100 I think he said that you can renew it but the payment will be higher because you are more older. That’s I am thinking too. I may go with term limit.
I had a whole life for $45 monthly for 3years, I met a primeamerica and he was arguing that the term was better but he was offering me the same coverage for $109 per month!! No brainer!!!
Because they don't believe any other life insurance aside from what they offer. Chances are, the company is happier because it's 1 out of 400 chance a person will die. They keep the premium as long as you're paying for it. They believe in what they call buy term and invest the difference. People only buy term if they see it fits what they need and for people who can only afford to buy cheap policies but it becomes expensive over time.
Thank you so much! I've listened to a few videos on this topic and I was starting to think am dumb for not understanding but after your video, it all became clear. Am subscribed!
classic dont judge a book by its cover, u are in image last person I expect to teach me about life insurance, an yet u wer super efficient an education thanku
Marco great video!! Just got myself a 30 year "return of premium" term policy. Cheaper than whole life have 3 options in 30 years. Was able to get more coverage for less money and I don't feel like Im losing it since technically my premiums can be returned to me if I choose. 1. Take the cash back "return of premiums" I have paid 2. Convert it in to a whole lofe policy 3. Add an additional 11 years to my term policy. Just wanted to share my recent experience shopping for life insurance. Thanks for your content, recently found you and am enjoying your perspective!
Sorry but to me it seems that they’re always pushing term life rather than whole. What he’s not saying is that when that term runs out you get nothing. Term is like Paying rent versus whole life is owning a house.
Big 4 whole life companies allow you to go cash value heavy... 10% to premium and 90% to cash value. Potential to break even with CV by years 2-4. Positives I’d think are the CV you could use to buy rental units, pay off other debt, etc. you technically borrow from yourself and break even since the policy earns a rate “almost” equivalent to your loan rate. It’s all about leverage. Friends have used one of the big 4 and most have quit their day jobs and living off their rentals. The tax free part is a plus. The death benefit is another plus but you almost don’t want to live too long as you basically paid the entire amount from your cash value. Biggest plus might be the fact that if you ever have a lawsuit filed against you or your company then no one can touch your whole life policy. Great video! Glad I’ve subbed you. Keep up the great work!
Even if you go heavy into your cash value savings you said it yourself...you're borrowing that money you've saved that builds interest if not paid back right away. It's just an overall scam product for that very reason. Why would you borrow your own money and have to pay back with interest on top of it. That's insane.
P.s. going 90% of a 100 policy or $90 savings a month is not a lot to consider borrowing from..even if it was growing at a 1-2% rate in which most of these big 4 companies won't even match bank's rate. Never buy whole life if you care about your family
Thank you for explaining.i got my whole life (guaranteed) from my friend.I'd been paying my premium for almost 12 yrs.now.i didn't understand much about this term but now that you explain very well the difference,i now realize i've wasted my money for my whole life insurance.
The only reason you should get a guaranteed issue whole life policy is if your health rating is too poor to get a good dividend paying one. If that was the case, you probably wouldn’t have qualified for term insurance anyway. If you have good health, I would consider doing an exchange to a mutual company that pays good dividends. Not even all mutual companies have the same dividend structure. Shop around.
Whole Life Insurance is the payday loan business targeted towards the middle class. Awful financial product, stay away from whole life, universal life and variable life insurance. All of these are legally allowed to be sold, and are designed to make the insurance companies lots of profit. I used to work in accounting for a big insurance company, and whole/universal/variable were our most profitable. Term life is the way to go! You should get a Term Life insurance policy if you need life insurance. Be blessed!
❤❤ Even here in Kenya I still don't understand why you don't get back your money on term life insurance policy at it's maturity instead you are told to renew your premium by extending and buying another premium,in other words on top of what you paid for nothing, you add another amount
This video was amazing. It’s explained everything that I needed to know beautifully. Simple, non-bias , and straight to the point. I definitely need to rethink my policies. Thank you so much for this.
Once again a great video!! I would suggest that a cheap mod to be added to your home's security is putting reflective window film/tint on so that no one can see from the outside. As for whole insurance here in South Africa, what makes it attractive is that after being a loyal client there's a percentage cashback bonus paid to the client after say 10-15 years from their premiums. This way you're less likely to terminate your insurance and starting from scratch. Thanks again and keep it up 🙂👍
Thanks Marko. I'm a life insurance agent, and I cannot in good conscience sell permanent policies. I get a lot of trust from my prospects when I tell them that I only do term.
Andrew I'm thinking about getting into the insurance industry but I also cannot find it in myself to sell whole life policies. Is there good income potential for an agent who won't sell whole life?
My husband and I are considering getting life insurance but are you not able to invest from doing term? When people say do term and invest the difference what exactly are they even talking about? the difference of what? Lol
Marko - The amount of financial advice you lend for free is phenomenal! I've learnt so much from you and I feel its still tip of the iceberg.. In next life, please become my brother! :D :D
Why not invest the whole thing? Only 1% of people use it. Most stop paying after the 1st year. So why even buy it at all? Or did you just regurgitate something without thinking about it yourself?
@@bromcresolgreen Well with that logic you have to own a disability policy too because 1/3 people become disabled and when a person has no income you know what they cut out first? Not their eating habit. They cut their life policies. And you need an umbrella policy. And a cancer policy. But you don't run out and buy that. Because you don't really care. That's why 98% of term policies lapse in the first years. You don't really care about your family getting your earnings. Sht still happens after 1 year.
@@Mford1212 irresponsible behavior, we can pass at any given moment. Why would you suggest not having any insurance and just invest everything? That's why term is recommended..it's a temporary need until you build your wealth and assets. Most likely your house would be paid off in 20-30 years, little or no debt and your children should not be living off your income anymore.
@@LegendRonk Why do you assume I am telling this person there is no need for insurance? I am questioning his thinking. Because all he is doing is regurgitating lines from a radio show for broke people. A show that makes money by pandering to the largest audience. Broke people. If you can pass at any time why is the need for insurance only temporary? This is poor peoples thinking. This video is materially inaccurate. The kid has no idea how life insurance works. And neither do you. But guess who does? Rich people. Rich people gobble this stuff up because they understand how it works. And not cheap temporary policies. Permanent policies. And their permanent policies are performing better than your qualified plans. If you are the type of person who thinks that paying off a house in 15 or 20 years vs 30 years "saves you money", then you have no qualification to be advising or commenting on financial products or strategies.
I have a friend trying to convince me to get whole life. I've now been researching for about a week and all signs point to no. I think this video best described why it's not the "steal" they try to convince you it is. Big Thanks!
@@mirandaquinnn the insurance companies make it confusing on purpose hoping that the smoke and mirrors will make you confused enough to buy what you don't need. Just ask for the amount of coverage and the term you want and don't listen to the sales pitch.
How’d it go? I am in the industry now, and always trying to hop on here to get the pros and cons people are looking at it from UA-camrs versus financial planners.
@@Funnymike1026 happy to say I passed my exam on the 3rd try. (>70% pass it on the first try so don’t beat yourself up). I’ve been working in my office for about 3 weeks now and I’m a part time student so the hours are pretty lenient. I work under an agent and it’s definitely one of those careers where you get what you give. (The more effort and dedication the better results). I’ve actually recommended this career to many people since. Good luck
@@paulstutsman Hard to say, I’d say it’s about a quarter of the types of polices mixed together. Honestly my test had a lot on health insurance more than anything
If you have a finance degree you should talk about "net present value" of money. Simple interest vs. Compound interest. Mortgage acceleration through lump sum payments to reduce principle. I'm just trying to help you clarify terms and ideas for you viewers. You should really come out with an additional video on equity based "modified premium whole life products" I get the notion of buying term and investing the difference. I was doing that since 1979. The problem is most people do not invest the difference. People who make a lot of money can use life insurance in creative ways to protect large amounts of cash value on a tax-deferred status. BTW you are on track with most of advice. the 'four corners' are also called the 'Ben Franklin' close or comparison. Example: "Whole Life = my policy pays weather you live, die, or quit. Buying Term insurance is like flushing money down the toilet" I have heard all the arguments. "Dividends" on a whole life insurance policy are NOT "dividends" but rather a refund of an over payment on your life insurance policy. Look it up. FTC and IRS ruling in the 1970s.
Thanks Richard. I'm in the works of a NPV video but I honestly don't think people care about that subject. I'll still end up making it though. Thanks for your comment
Richard Surckla Or you could prepay the mortgage with the thousands you saved ny not buying whole life and save even more thousands in mortgage interest.
The other point to make is if someone dies if they have term insurance and has 30 or 40 or $50,000 in the market, their family gets both of them. Cash value life insurance as you said is absolutely the worst Financial product ever created. I really enjoyed the video, there's just some finer points that I think could be pointed out to make this not even a debate.
@@icanmanifest not true if you had $1M in a professionally managed fund how much would you pay in fees my guess is well over $10,000/yr if the money manager is any good charging 1-2% in fees not including market losses
Only 2% of term insurance ever pays out. I'm an agent this was a very bad and misleading explanation of whole life. I sale term and whole and its based on the clients needs. Walt Disney borrowed from his whole life to start Disney
My boss was a very wealthy & financially successful man. He told me : " Anyone who comes to you to sell you something is there for THEIR benefit, not yours."
Would your boss, who's very wealthy, say there are any examples where you're sold something and it's to the benefit of the buyer and seller? If not, seems like an odd, cynical statement.
Dave Ramsey explained it well too. Don't invest with insurance. If you die, they keep your cash value.... Its pushed hard because the agents get paid on commissions of the price. Video is SPOT ON.
not totally true. There's also an option to get both Face amount plus Fund Value. However it's not all available in all Life insurance companies. 1 out of 4 insurance companies i work with offer that.
What is the best life insurance for a 60 year old person on social security disability (due to a heart condition that only worsens with each passing day) that wants to make sure that in case of their death that at least their funeral expenses can be paid? I worry about this all the time that no one in my family will be able to afford to bury me.
The best way to get ahead is to BUY TERM AND INVEST THE DIFFERENCE separately. Never use insurance as an investment, keep them as far away from each other as possible. Insurance and investments are like oil and water, they should never be mixed. Get an adequate term policy and invest the difference into a separate investment entity.
Correct you got term ,but until when? 20 or 30 yrs. After that your insurance lapsed. When you get older you need insurance because we get sick like stroke, cancer etc. He explained about whole life with fixed interest, Now we have IUL, Indexed universal life. You can maximize it. There is option A and option B. In option A you beneficiary will get the face amount only not the cash value, but in option B your beneficiary will get cash value plus face amount. Not only that. IUL, you dont need to die, if you get sick like Terminal illness, critical, and chronic you can use your insurance. That's what we call life insurance with living benefits. If you want to know more about it ask ne how?
Rose Dilla yes term ends but depending on the age you can convert to whole life if needed or requalify for another term up to 20-30yrs again at a lower death benefit if you still healthy & still pay way less than the CV. Choosing option B means guess what, higher monthly premium. Why do all that when you can just invest that money yourself & it’s yours & become self insured, granted with discipline & if agents do their job we can help the client reach that goal. Why save for that money to only go back to the insurance company when your family can have both, term insurance also has living benefits also, most of the companies I write for have living benefits on their term critical/chronic illness up to 90% of the death benefit death does not have to be in the picture, terminal illness up to 100%.
Hey Marko, I enjoy your videos and you are providing some great info. I’m a Certified Financial Planner and some of the info you provided here unfortunately isn’t 100% accurate. Would be happy to discuss it with you and help your audience get a better understanding to a complex subject. Truth is many insurance and financial professionals don’t understand these products and it makes it even more challenging... Thanks
Part of it I agree. I do work for Primerica and I am working on getting license for doing Life Insurance. Term Life Insurance has cash value. I can sign you up, when you are ready, but sooner the better. With the cash value in the Insurance is to Insure the company gets paid, just incase of you pasting. Soon as the term is up, the cash value is yours. That is with Primerica. There are always loop hole. I just have to take my test. I am done with the class. And Primerica offers more things; Vivint Smart Home (which I had for 3 years now, before I did Primerica.), Auto and Home with Answer Financial, and ID Theft Defense & Legal Protection with LegalShield. Side note: When you have a Home Security System and have Home or Rent's insurance, it lowers the cost on the insurance. The reason behind it, your home has security to protect, if anything goes wrong. I have the information, hold on.
There is a slight misconception here. you're not buying a whole life insurance for the cash value or to save money, there are other savings plans that are better tools for that. Insurance needs changes depending on what stage of life you're in. As he mentioned, term life insurance only last 20-30 years and the policy ends. The average life expectancy in the states is 78yrs old. An example would be if you are 35 and you purchase a 30yr term life policy, you live till the policy ends. you're now 65 with no life insurance to give your family if you happen to pass away, and if you decide you want to buy another term life insurance plan again, there won't be any insurance company that would want to take you because the amount of risk at 65 yrs old is too high. Whole life is good to purchase when we're healthy, it's not for the cash value. it allows a peace of mind that we can live through to our old age without worrying. Also majority of the time Whole life insurance would also cover Critical Illnesses and Disability while term life insurance might not. There are definitely pros and cons for term and whole life, it is how the policy is used to solve a problem in the client's life.
Marcus you actually help me make up my mind you made a lot of sense. I was just about to cut a check for $409.25 to purchase a whole life insurance company to keep it going from a term that I had with my last company I left two months ago on a conversion. I’m glad I didn’t because now that I watched your video it really would not make any sense to do that. Thank you for saving me $409
If your students listen to you, they will have a tough life. Does your statement apply to the "salesPERSON" that sells college education? If not, why not?
Me too, I paid opp or cash value $600 a year and I have no idea that money is not mine. Now on I will pay only the premium. I took that Insurance for my kids what a mistake I did. $600x 3= OPP payment which won’t be mine. I am sad now.
It doesn't. This is misinformation from someone who doesn't understand what the cash value represents. Talk to someone who actually understands what the cash value represents.
@@mariec4531 If you've paid premium and PUAs which go towards cash value then you're not losing your cash value. It's increasing the death benefit by a ratio of about 3:1. So if you put in $600 towards cash value then your cash value will go up by $600 and your death benefit will go up by about $1800. So if you die the kids will get an additional $1800 in death benefit. In other words, the cash value payment is being reflected in the increased death benefit.
@@maxpruger837 and this is but one of the parts the presenter is missing. I almost bought into the “buy term and invest the difference” argument a few years ago. That argument falls down over the long haul when you go to renew those term policies. In my case my monthly term premium would’ve quadrupled when renewing at 54. He also didn’t speak to with whole life when you borrow against it, the principal continues to grow and dividends continue to pay out based on what your max cash value was so when you put it back, there’s actually more in there.
Both term ans w.l are great products. The difference depends on who the individual is and what is s/he end goals. Any great agent should assess each person's financial situation separately. The individual situation determines the type of policy not the other way around.
This video was extremely helpful! 😊 It's great to finally understand the differences between term and whole life insurance. Thank you for breaking it down so clearly! 🙌
He made a lot of statements not correct. Like term pay out never had to be lump sum and it can set how to be payout like you hitting the lottery. The reason for this is that can collect interest from the insurance while the beneficiary is alive. It is never about term vs whole life. It really depends on what client need and want. Can they fit to them
So the cash value on a "Whole" life ins.plan is you just donating the difference to the company with nothing to show for it on your end.That's a racket.Very well made and informative video.
@Clark yes most people out live term policies when they are cheap... try getting a term policy when your 60 or 80.. supper expensice.. morenthen what whole life will cost..
@@Rshen11 yeah but that’s just the thing with insurance. Hoping you never have to use it. Pay a lower premium and more than likely a higher payout so just in case if something happens it’ll be ok in terms of financial aspect for your family. By time someone retires hopefully they have everything paid off money saved up and a retirement nest egg to where they don’t need that.
Also, there’s a lot of wrong info here on whole life. Although not good for 90% of people, blanket statements about all insurance companies is false and the rate of return, loan average, and dividends. I love Mario but this video is just not accurate.
@@ChopOn414 The product is a terrible product for the consumer, if a person is recommended to this product, it is because their situation is dire or as a last resort.
@@johndewhurst3612 and that’s also not true lol, if they were in dire situation, perm would be the last thing that would get recommended, and you’d never make it through underwriting for term or perm in that “dire” situation
*Get Term Life Insurance HERE:* whiteboardfinance.com/go/havenlife
I am 27 and paying 132 dollars a month for a 100,000 policy I feel like I am being ripped off. Am I?
@@shayl0tus hard to say, it's different every where you go. Nothing simple about the insurance game. You have to do your due diligence and get quotes, figure out what debt you have that will be left to family, figure out the cost of living month to month for your family after you pass away figure out cost for schooling for your childs education like colleges how much that would be for a 4 year thing figure how much it'll costs to bury or burn you figure the cost of the get together with food services things like that, figure out your monthly spending habits as a whole family with you included and take an average from the year and then make sure when you die that can be replaced. My situation I am the sole provider I need to make sure my wife and children are set
@@ML-ks2lj such a big help!
Thanks!
@@shayl0tus the rating is based on your lifestyle, medical history or what kind of life insurance you have and for how long you are paying for. I teach all kinds.
How do you feel about endowments policies?
I’m glad my father had life insurance. He died in 1965, and because of it my mother had enough to live on until she died in 2009, when she was 94
Wow that is amazing, I bet you have a good policy with great benefits and death benefit 👍🏼
what kind of policy?
@@randalleofficial can I get a referral what company?
can I get a referral what company ?
@@theresaquickster4214i give free quotes!
Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $800K in the stock market, experiencing fluctuations without substantial gains.
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Opting for an invest-ment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfOlio has surged by 45% since Q2.
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science.
I Researched her credentials and found she possesses over a decade of experience and serves as a value through different resource for individuals seeking guidance in navigating the financial market.
570 dislike came from whole life insurance agents lol
Nope. The dislikes came from ppl who actually understands how this works and knows his information is incorrect.
Lol 😂
@@abcdefghijk2073 You can actually withdraw the cas savings before you die and still keep the policy.
Buy term and invest
😂
I'm 35 and just recently told my husband (41) to look into ins. After watching this my mind is Blown!!! Thank you for posting this!!!
I sell 100% term and we have 35 level term and insurable age to 95!! Let me know . Let's run some quotes !! GODBLESS you all
Yo... this is the first commercial/sponsored ad from a UA-camr that I actually literally enjoyed.
During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?
A coworker sells insurance as his side hustle. He likes to talk a good game. After watching your video I am more informed. THANK YOU!
Exactly.
I’m intrigued about your coworker because I’m about to be on the same boat (Selling policies as a side hustle). How’s everything looking for him?
MAN, glad when you said "sponsored video" you didn't follow it up with a life insurance company pitch 😂
Do your thing man, make that ad revenue money!!
He literally put a pinned comment to buy Term Life Insurance 🤣
I took a class for life insurance to be primerica agent. Class was so fast and I couldn’t catch all so search for it and found you. Thank you for making it clear in 10 mins.
Primerica is a scam
Whole life agents disliking and commenting on how bad whole life was presented here
thats one of their duties as agents. Might do the same if i am one.
I sell big Whole Life policies to a small segment of the economy. It's a very niche product which adds huge value to people who use it properly. If purchased under false pretenses -or- if used inappropriately, it can easily be a terrible waste of money. It depends on how it's positioned. Transparently: there isn't any vehicle in the US tax code that is efficient for everything. Otherwise, everyone would only use that hypothetical vehicle. Does my rationale make sense?
Because it is. It is one thing to misunderstand a product. It is anonther to spread that misinformation as if you are an authority on the issue.
Not everyone needs whole life
So if you have a nest egg and you are decent at investing life insurance is a scam 🤔
Many people make the mistake of not taking out enough of a policy to replace their income !
Chris Invests - Personal Finance Videos I didn’t know that. I learned that today. I only have 250k and my husband earns 150 a year so it’s not much I guess in comparison.
@@mizzmuhree9297 Also take into consideration your investments. If he has a substantial nest egg it might not be necessary.
Thats a huge difference and a big eye opener for not buying a whole life. Thanks Marco for that simple but accurate presentation.
Good presentation.
But let me clear here for general public in layman language that term policy is for specific purpose which vanish every year like for death coverage or hospitalization cost and premium is an expense here not saving, which increase as age grows. This policy usually cover in group insurance by employers for employees. When employee leave job this policy closed.
While whole life policy is for family financial protection and investment. Its benefits enjoy during life time and on death for example children's higher education or marriage, retirement, hospitalization, buying property, jobless period in addition to family financial protection in case of disease, disability or death. Here premium is constant and is long term saving with good return.
SO WHOLE LIFE POLICY IS NECESSARY FOR EVERY WISE FAMILY AND FAMILY BUSINESS PERSON.
Note
My above explanation is on Pakistan perspective not USA. I suggest all Pakistani Americans to get efu Takaful Plan from Pakistan to enjoy multiple benefits.
Thank you so much for your videos, I failed my LifeInsurance test so many times but once I sow your videos I passed. Thank you for your help.
I like how you explained the term vs whole life insurance . At the begging I thought you were one of the whole life sales guys who try to paint the on how whole life is good but I am glad I listened to you. It was very clear and honest. Thank you. We need more people like you that will tell it like it is .
He didn't tell you the entire story!
You are correct - he's not biased toward whole life. He is, in fact, biased toward term. Just as bad, but just in the other direction. Sounds like you're on the term life team - good for you. If you want an unbiased point of view, let me know.
@@dads4514 interested in your perspective sir.
This guy is so wrong its not even funny he should have his licensed taken. You will pay less for a 20 pay whole life than you will for a 30 year term and you still get to keep the coverage.
The problem is there's no hidden information with these types of policies you just have to ask. Whole life builds cash value whether you want to use it or not. The biggest value is that it's permanent and it locks in your age and health. If you never touch the cash value your coverage is worth the full value from the day you are approved to the day you die
Marko, I can’t thank you enough. I have 3 kids and been thinking a lot about something happening to me and leaving my kids with a financial burden, it’s not cheap to die. With that being said thank you for providing this education to people like myself I appreciate you, you are making a difference.
ive been looking at dropping our whole life insurance policy for a term policy and then invest the left over into my current IRA and this has helped make the decision clear. very well done and thank you!
while whole life truly does suck, I wouldn't cancel it until your term life policy is fully active because the application process can take a few weeks depending on the company you go with. It's not very likely to happen, but you'd be hating yourself if something (heaven forbid) tragic happened to you or your family.
Permanent insurance is great product until you have the cash flow and the income to do it. First, make sure that you're contributing to everything that you can where you're going to have tax advantages like maximizing a Roth IRA and if your employer offers matched 401k, max that out and if you have a death benefit need, go with term. Then after all that and you still have cash flow left to invest for the long term and want to grow your tax-deferred and safe dollar segment then you go whole life.
Ryan Burt - What are your thoughts on TAX FREE WEALTH & LIFE INSURANCE ?!💰🧠💸 •CASH VALUE - (E.I.U.L.) & (M.F.T.A.) ARE SACRED FINANCIAL COWS; THAT ARE PROTECTED, BY THE IRS TAX CODE CITATIONS: * The Tefra Act of 1982 - 72(e) ,
* The Defra Act of 1984 - (7702) ,
* & The Tamra Act of 1988 - 101(a)
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These acts; allow one to ACCUMULATE, ACCESS, & TRANSFER their money TAX FREE. 😉🤙🙂
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As ADVANCED MARKET & SOPHISTICATED life insurance agents; we are suppose to help show people, how to Make, Protect and Move their money from UNSAFE places, such as (401k's, 403b's, TSP’s, Pensions, Stocks, Mutual Funds, Cd's, IRA's, Social Security, etc..) Which are all exposed to the volatility risks of the stock market, inflation and Taxes. 😬
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And Help place them Into SAFE places, such as Life Insurance; giving you protection from the stock market & a guaranteed Compounding Interest rate of return on your money! (TAX FREE!!!)😉 with, the 0-3% GUARANTEED MINIMUM as a floor protecting you from financial devastation! (COVID-19)
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So, when the stock market corrects itself again (Crashes) as it does on average, every 7-10 years. (the last one being, the 2008 housing bubble burst.) Your money and assets, along with your family, will all be protected in the event of that crash; due to the Guarantee Protection of the 0-3% as a floor, Preventing you from losing your money!
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LIFE INSURANCE = SAVINGS ACCOUNT?! .
With banks giving (1%) interest back and inflation being at (3.5%) plus, taxes at (1.5%) = a total of (5%) against your $ By Default, your losing (4%) of your money every year just by having it in the bank!
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HOW MUCH LIFE INSURANCE DO WE NEED?! 🤔😀
(EXAMPLE): (apply the D.I.M.E. Method in order to help calculate, exactly how much Insurance is needed.)
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Debts (all debts, Credit cards, etc..)
Income x(10) or x(20) years
Mortgage
Education x(# of children) $60k per child
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Add up the total and that's your Life Insurance necessity.
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💥THE POWER OF LIFE INSURANCE💥
Did you know?! After the Collapse of the 2008 housing market bubble, a total of $5 TRILLION DOLLARS in Pension funds, 401k’s, Real Estate Values, & Bonds, just up and Disappeared?!😳🤬🤯 Can you imagine that?!
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Just how bad was this collapse?! 8.8 MILLION people lost their jobs; and 6 MILLION people lost their homes, and that’s just in the UNITED STATES!” 🤭😱 ($19.2 TRILLION DOLLARS 🌎 WORLD WIDE!)
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THINK 2008 WAS BAD; WAIT UNTIL, YOU SEE WHATS COMING?!
THE EVERYTHING BUBBLE?!!😶
If these crashes / collapses / Market corrections, happen so often; this means, we may be facing another one here in the near future, right?!
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🔥THE PENSION CRISIS🔥🏦 .
If you think you can still retire with a pension plan; then, you may just be in for a rude awakening. 👀
Allow me to share with you why you should begin to rely on yourself & not the government.
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Most Americans are now concerned; that company pension plans & Social Security, will not be adequate in providing them with enough income in their retirement years. Their concerns are warranted; and rightfully, so!
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According to an article on barrons.com; Social Security benefits, will start to exceed the programs cost in 2020, & the program will deplete it’s $2.9 Trillion reserve fund in 2035.
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The reserves will run out a little later than what the trustees of Social Security & Medicare projected last year; however, the bottom line is still the same. The programs deficits appear vast; making it clear, that the public should expect smaller benefits, higher taxes or more than likely, “both!” 😲
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Over the past 40 years, Congress has approved increasingly beneficial retirement options, designed to encourage Americans to save on their own, for their golden years.
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Meanwhile; no congressmen, will dare utter the fact that with mine blowing numbers of TRILLIONS & TRILLIONS of unfunded obligations; such as, Social Security & Medicare, which have now become described by many as a Ponzi scheme, that can never be fixed.
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Congress has covered itself w/ retirement legislation. So, much so, that sometime in the near future; 10 to 20 years from now, when the government system inevitably breaks; congress, The institution will be able to shake it’s finger at the American people, and point the finger back to 401(k)s, IRAs, Roth IRA‘s, & the similar in between of products they have created.
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The message will be, that the benevolent Congress gave the masses a way to save for their own retirement, years ago! 😯😶
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What will not be addressed, is why did the government continue to take 15.3% in PAYROLL TAXES from workers & businesses for a failed system; However, that will be an issue between you & the ballot box.
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The point here is; that to provide for your own retirement is prudent, as it is in all facets of life, to rely on yourself & not the government.
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I hope I was able to help.. Much Love ❤. (Instagram) 💪🏼@TheFinancial_FitGuy
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Remember; He who forgets the past, is bound to repeat it!” 😳
@@danielkicksable That entire last 3rd seems like a scare tactic to sell life insurance. None of this explained to me how life insurance will protect people from the incoming pension crisis. I mean unless if the stress of the pension crisis and your other account failing end up kill you from a heart attack. but seriously where and how do life insurance companies insure 0-3% interest on the cash value. maybe I misunderstood this part or one of the acts/bills/laws you cited protect or forcibly guarantee the"Guarantee Protection of the 0-3% as a floor" you mention. But then you mention the government system will inevitably break so again, what makes life insurance such a glorious shield to protect your wealth, what exactly protects life insurance from what will kill everything else? I'm honestly asking to become informed as I don't know if I should keep my Whole life or not but you're defensive comment as a sales rep does not feel very informative
Eric Arosemena - firstly; I am not a salesman, I am a state appointed field underwriter. Big difference. If you’d like; I’d be more than happy to educate you.
Unfortunately, 9 out of 10 people, will not know this information. In which, I can understand your lack of knowledge in this field. After all, it’s not your fault, school does not teach this subjects or financial strategies I’m referring to.
I went with 35years term with living benefits at 38$ a month & 20$ a month for 200k Accidental D&D. I’m turning 27 and I got it when I was 25. The way I look at it is JUST IN CASE since I have a daughter and son to worry about.
What company? I’m looking to sign up for one
Company?
I was sold a whole life policy post-recession in my late teens. My financial advisor played on fear of the market crashing again, stating "whole life policies can't dip below a 0% return." What she didn't communicate:
1) The amount of fee's associated with whole life plans + the front loading of my premium going to death benefit instead of the cash value.
2) The fact that I would be paying interest to borrow my own money. She only mentioned that its "tax free!"
Early on I realized my cash value was not moving despite the market performing well which prompted me to read through the fine print (hidden on the financial firms website). Once I confronted her about the facts she recommended I seek guidance from another financial advisor. (LOL)
Lesson learned, thankfully I was only out ~$10k. I cashed out and invested what was left in Vanguard index funds and have enjoyed several double digit return years with near 0 fees. It's sad that these advisors are mooching on the middle class. Thankful for videos like these, educate yourself!
Whole life is not much of an investment than it is a savings vehicle it's a fixed account on average earning 4% it's a great alternative to a bond CD or a savings account it's not meant to keep Pace with a mutual fund or a stock portfolio but you don't ever borrow your own money you take a loan against your paid up insurance once you build enough equity
429mas dude whole life is garbage. You can make much more buying equity and selling deep in the money covered calls .... 4% lmfao
@@haynej3 whole life is definitely not for everybody it's specifically designed to provide safety liquidity and guarantees not 10 or 12% rate of return it's a great alternative to other fixed accounts it's not meant to outperform the market
Robert Schafer how long did have whole life before cashing out because I think I want to switch to term
@@429mas with your fees and such, are you really earning even 4%. Whole life barely does better than that in best years? Which Whole life are you using? Any individual with a mentality to have ownership in ones finances can make investments and earn much better than whole life insurance products. It is truely a sucker's game. Basically slightly better than just parking money under a mattress or in a regular savings account.
From where I’m from our whole life plans are limited pay (which means you pay for a limited number of years 10,15,20) and still get covered for life compared to a term in which yes you do choose your term (10,20 years) however it doesn’t cover u for life. In which is akin to renting a house vs buying a house. Now worse case scenario is when ur term plans comes to end (your renewal obviously sky rockets ) and the very worst..is you don’t renew and something happens..
So i always believe its best to have both to complement each other ...my humble opinion that is. Cheers
So where are you from that this makes sense to you?
What a horrible example you gave. Whole Life cost at least 20 times more in premiums than term. Plus, when you die, the insurance company KEEPS the cash value that you've been paying in all these years and only pays the death benefit. Sorry, scammer. Try again.
You are better off financially getting term life for 30 years until about your expected retirement age. Invest the rest (difference in what you would have paid for whole) and by the time the term life expires, you will be "self insured" and will no longer need life insurance.
Probably smart to get Term life when you hit 40-45 and get a 35 year .. if that’s in the 20-40 dollar range it’s worth every penny.. and now eat whatever you want if you make it past 80 god bless 😂 but then I would also look into a cheap whole life to at least leave something behind
😂😂😂@@FuegoBravo1
I love how you're geeking out during this video. It's all a bit savage
My husband and I are closing on a home soon and we'll definitely check out the simply safe recommendation. Thanks
Definitely get TERM ASAP, with or without family, it helps your parents, friends, whomever, that will help with funeral costs and fees
jup1828 whole life helps pay funeral cost and fees as well
Less than 2% of term insurance policies pay out. Have fun.
@@SilentNecrosis exactly
@@SilentNecrosis why do they not pay out are you saying they don't pay out because the people don't die or they screw you over at the end?
hi Jup, can I buy your policy for you, you are STUNNING
The most important take away from this video is to be careful when crossing the street.
Dude i crashed my bike really bad the DAY after I made this video. Be careful what you put out in the universe
@@WhiteBoardFinance Wow, that's not good. Are you OK?
@@WhiteBoardFinance 😱😱😱
And never buy a whole life policy!
Remember: you cannot eliminate the risk, you can only reduce it.
Damn recently got my whole life policy they say i have 10 days to cancel. Now its all here on paper it doesn't seem as good as i thought. Thank you for the video explantaion. They caught me on a happy day
Like he said you can take your money out. You can get back some of the premiums you paid.
Dislikes? I see some whole life agents have found the video already! Great job Marko.
genglebretson lol
genglebretson *cough* snake farm
Some? It looks like an infestation. Lol.
@@danielkicksable Writing a thesis about life insurance is boring and doesn't validate your point.
@@astroman30 - I’m sorry your brain can not comprehend this so called “ Boring Thesis” If money & Tax free wealth is boring to you; then, I guess I’m bored in an abundance of wealth. 😉 which makes me concerned for you and your demising financial future eroding away.
I really do hope you change your horrible mindset; because, it is definitely skewed in the wrong direction, for your sake anyway. 👌
This is why I have term insurance and a investment account.
👌I hit the subscribe button right after watching this video. I'm 46. I think that I will go with the "term life insurance" I will save the video so that I could watch it a few more times before making that decision.
Thanks a lot!🙏❤
The modality of your voice and the speed made this video much comprehendible, i could follow you along the way round of the video... I received a message from a recruiting manager of an insurance company so searched on to have more knowledge with regards to it, kudos for the clear content 🙏
You did a great jobs explaining the difference. If you get to 60 and you have to renew your Term insurance policy, that means for the past 30 years you didn't make any money off of your investments, which is almosts crazy to think of, because all you had to do was put in the maximum amount for a roth IRA for 30 years and you would be a millionaire.
Please, explain
It what if you don’t live to 60
@@khy7672 Then my wife will be well off, because my current Term policy will pay her exactly $500,000. I think she'll be well off along with our real estate investments, Roth IRA's and 3 pensions. If I were to die after 60, then she'd be well off also. So not sure what your question is?
@@marcusjohnson5391Did you put all 100% on your wife's or do you also have kids?
Thank you so much. I was about to take whole life insurance, as an investment vehicle. After this video, I have second thoughts.
Now I know why I see a State Farm and GEICO commercial every 5 minutes
This was more clearly explained than the Dave Ramsey version I just watched. Thanks!
Definitely!
I can't stand Dave Ramsey hes a ttpical big headed millionaire giving mid class ppl half ass advice
@@l.300 hes pretty straight forward. People like you are so hard headed and want everything spoon fed to them
Dave Ramsey is a fast talking tennesee biased snake oil salesman.....cookie cutter salesman....
L.L. yes
I've heard that whole life is bad but I had no idea it was this bad! Thanks for this informative video.
There are a couple problems. First is that it is marketed as an investment product as well as an insurance product. The second, and more important to remember, is that it does a lousy job at both. I was unfortunate to buy into a whole life policy but fortunate enough to get out after eight years. In those eight years, my return was around NEGATIVE 13%. Investing the premiums in a term life policy and the difference in a Roth IRA will do your beneficiaries far more good. Your "financial advisor" loves whole life because the commissions and fees are so lucrative for them and their firm.
Better late than never my friend!
@Evan Panowicz Nah dude, Whole Life is garbage for anybody buying it.
@Evan Panowicz Go ahead princess, please elaborate. What makes WL insurance so great?
@Evan Panowicz what’s makes WL so great princess?
When you teach and laughing 😂 I really like that .
Great information! I have seen Whole Life policies that self terminate because the fees consume the cash value and increase the payment. Horrible
Sounds more like a UL product than whole life. Stay away from those. And Whole life PUA riders that involve annually renewing term.
Sold insurance, whole life commissions were nice to sell. There are different life insurance policies that tie into the market to give you a better return. More complex for people to understand so they’re not as popular.
I myself have a term life policy. And some companies will let you buy another term policy at the same rate. Good stuff though!
Thanks for sharing
Yea, I believe you can buy 2 life insurance policies in 1 yr, so you can have multiple, but like the guy said in the video, I guess it just gets more expensive to get term life the older you get, due to higher possibility of death
So you sold whole life but you own term?? Hmm
No I completely understand life insurance. But to sell someone an expensive cash value policy when you own term and invest the difference yourself? That should tell you everything you need to know right there. Cash value policies "sound good" and conceptionally make sense, but they are a nightmare contractionally. Clients always end up under insured and over charged! But hey at least the agent made a fat commission instead of doing what is right for the consumer
@@JeremyMcTaggart That's right - whole life insurance is a complete ripoff. You could buy a 25 year term life policy and with the savings compared to whole life insurance invest in an SP500 index fund. For a $500,000 whole life insurance policy on average the insurance company is making $2,500,000 by investing all your premiums over 30 to 40 years before you die. Sure some people will die earlier than average and the insurance company will lose a little but for those that live to average or above average, the insurance company will be only paying out about 20% of what they made by investing the money. Also, with super high premiums with whole life policies if you can't make the monthly payment at any time for example due to losing your job, you will lose the policy.
Every dollar invested in an SP500 index fund will grow to about $30 after 30 years. Most people don't realize how this makes such an impact. Also, if somehow everyone died early (far less than average life expectancy) and the insurance company did not have enough money to pay out claims, they could just declare bankruptcy.
I really knew nothing about life insurance until just know.. Thanks Marko.
thanks!
Favorite line: "It's very expensive...if this were a restaurant I'd give it 4 dollar signs."
So what happens if you have term life insurance policy for 20-30 years and the time is up and you live beyond the 30 years. Do you still continue with your coverage? How does it work past the 30 years?
@@theresavisser6100 I think he said that you can renew it but the payment will be higher because you are more older. That’s I am thinking too. I may go with term limit.
Thank you so much! This is exactly what I needed to know.
I had a whole life for $45 monthly for 3years, I met a primeamerica and he was arguing that the term was better but he was offering me the same coverage for $109 per month!! No brainer!!!
@azu'car Weber, who are you insured with?
Because they don't believe any other life insurance aside from what they offer. Chances are, the company is happier because it's 1 out of 400 chance a person will die. They keep the premium as long as you're paying for it. They believe in what they call buy term and invest the difference. People only buy term if they see it fits what they need and for people who can only afford to buy cheap policies but it becomes expensive over time.
Was pitched today about the whole life and FA kept on bragging about 5% return. Sounded fishy, now I know why! Thank you!!!!!!!
Thank you so much! I've listened to a few videos on this topic and I was starting to think am dumb for not understanding but after your video, it all became clear. Am subscribed!
I been an insurance agent for a few years now. You are spot on brother! Buy term and invest the difference!
Hello, how do you invest the difference?
When you say invest the difference what do you mean?!
classic dont judge a book by its cover, u are in image last person I expect to teach me about life insurance, an yet u wer super efficient an education thanku
I’m actually glad you showed the security system. I want to get one!
Lol thanks. I genuinely love it otherwise I wouldn't have sponsored the video with it :)
Thanks. This saved me from a big mistake.
Wow, wish I found you a long time ago! Thank you for sharing, I will be sure to share with my children.
I have been looking for a clear explanation between the 2 policies. Thank you for making this super easy to understand!
A kindergartener could understand. Yessss, thank you Sir!
Take a look at “Wealth Nation” channel. Just as awesome♥️
@Frank Sabotka so rude and disrespectful I feel sorry for u Frank
@@melissaosman3780 Unfortunately, it was researched using kindergarten methods with a ton of misinformation and disinformation.
Me too! Glad this video popped up in my thread
Marco great video!! Just got myself a 30 year "return of premium" term policy. Cheaper than whole life have 3 options in 30 years. Was able to get more coverage for less money and I don't feel like Im losing it since technically my premiums can be returned to me if I choose.
1. Take the cash back "return of premiums" I have paid
2. Convert it in to a whole lofe policy
3. Add an additional 11 years to my term policy.
Just wanted to share my recent experience shopping for life insurance. Thanks for your content, recently found you and am enjoying your perspective!
nice
Sorry but to me it seems that they’re always pushing term life rather than whole. What he’s not saying is that when that term runs out you get nothing. Term is like Paying rent versus whole life is owning a house.
Big 4 whole life companies allow you to go cash value heavy... 10% to premium and 90% to cash value. Potential to break even with CV by years 2-4. Positives I’d think are the CV you could use to buy rental units, pay off other debt, etc. you technically borrow from yourself and break even since the policy earns a rate “almost” equivalent to your loan rate. It’s all about leverage. Friends have used one of the big 4 and most have quit their day jobs and living off their rentals. The tax free part is a plus. The death benefit is another plus but you almost don’t want to live too long as you basically paid the entire amount from your cash value. Biggest plus might be the fact that if you ever have a lawsuit filed against you or your company then no one can touch your whole life policy. Great video! Glad I’ve subbed you. Keep up the great work!
Manny Lidie who do you consider to be the big 4?
The companies with their names on top of the skyscrapers in most downtowns of the USA :)
MassMutual, NW, New York Life, Guardian
Even if you go heavy into your cash value savings you said it yourself...you're borrowing that money you've saved that builds interest if not paid back right away. It's just an overall scam product for that very reason. Why would you borrow your own money and have to pay back with interest on top of it. That's insane.
P.s. going 90% of a 100 policy or $90 savings a month is not a lot to consider borrowing from..even if it was growing at a 1-2% rate in which most of these big 4 companies won't even match bank's rate. Never buy whole life if you care about your family
Thank you for this. It sounds like the whole life insurance policy is more of a benefit to the insurance company than it is to the individual.
Thank you for explaining.i got my whole life (guaranteed) from my friend.I'd been paying my premium for almost 12 yrs.now.i didn't understand much about this term but now that you explain very well the difference,i now realize i've wasted my money for my whole life insurance.
That's the way these low life salesmen operate. They prey on family and friends, first.
The only reason you should get a guaranteed issue whole life policy is if your health rating is too poor to get a good dividend paying one. If that was the case, you probably wouldn’t have qualified for term insurance anyway. If you have good health, I would consider doing an exchange to a mutual company that pays good dividends. Not even all mutual companies have the same dividend structure. Shop around.
Whole Life Insurance is the payday loan business targeted towards the middle class. Awful financial product, stay away from whole life, universal life and variable life insurance. All of these are legally allowed to be sold, and are designed to make the insurance companies lots of profit. I used to work in accounting for a big insurance company, and whole/universal/variable were our most profitable. Term life is the way to go! You should get a Term Life insurance policy if you need life insurance. Be blessed!
❤❤ Even here in Kenya I still don't understand why you don't get back your money on term life insurance policy at it's maturity instead you are told to renew your premium by extending and buying another premium,in other words on top of what you paid for nothing, you add another amount
This video was amazing. It’s explained everything that I needed to know beautifully. Simple, non-bias , and straight to the point. I definitely need to rethink my policies. Thank you so much for this.
My friend you just saved me a lot more headaches. Thank You this video was informative
You are very welcome
Once again a great video!!
I would suggest that a cheap mod to be added to your home's security is putting reflective window film/tint on so that no one can see from the outside.
As for whole insurance here in South Africa, what makes it attractive is that after being a loyal client there's a percentage cashback bonus paid to the client after say 10-15 years from their premiums. This way you're less likely to terminate your insurance and starting from scratch.
Thanks again and keep it up 🙂👍
my pleasure thanks for watching
Thanks Marko. I'm a life insurance agent, and I cannot in good conscience sell permanent policies. I get a lot of trust from my prospects when I tell them that I only do term.
who do you work for?
@@rlyle5804 I'm an independent agent and broker of many carriers. You can contact me from my website atidconsulting.com
Andrew I'm thinking about getting into the insurance industry but I also cannot find it in myself to sell whole life policies. Is there good income potential for an agent who won't sell whole life?
My husband and I are considering getting life insurance but are you not able to invest from doing term? When people say do term and invest the difference what exactly are they even talking about? the difference of what? Lol
Marko - The amount of financial advice you lend for free is phenomenal! I've learnt so much from you and I feel its still tip of the iceberg.. In next life, please become my brother! :D :D
Buy term and invest the difference
Why not invest the whole thing? Only 1% of people use it. Most stop paying after the 1st year. So why even buy it at all? Or did you just regurgitate something without thinking about it yourself?
@@Mford1212 well because you know sht happens
@@bromcresolgreen Well with that logic you have to own a disability policy too because 1/3 people become disabled and when a person has no income you know what they cut out first? Not their eating habit. They cut their life policies. And you need an umbrella policy. And a cancer policy.
But you don't run out and buy that. Because you don't really care. That's why 98% of term policies lapse in the first years. You don't really care about your family getting your earnings. Sht still happens after 1 year.
@@Mford1212 irresponsible behavior, we can pass at any given moment. Why would you suggest not having any insurance and just invest everything? That's why term is recommended..it's a temporary need until you build your wealth and assets. Most likely your house would be paid off in 20-30 years, little or no debt and your children should not be living off your income anymore.
@@LegendRonk Why do you assume I am telling this person there is no need for insurance? I am questioning his thinking. Because all he is doing is regurgitating lines from a radio show for broke people. A show that makes money by pandering to the largest audience. Broke people.
If you can pass at any time why is the need for insurance only temporary? This is poor peoples thinking.
This video is materially inaccurate. The kid has no idea how life insurance works. And neither do you.
But guess who does? Rich people. Rich people gobble this stuff up because they understand how it works. And not cheap temporary policies. Permanent policies. And their permanent policies are performing better than your qualified plans.
If you are the type of person who thinks that paying off a house in 15 or 20 years vs 30 years "saves you money", then you have no qualification to be advising or commenting on financial products or strategies.
I came here to be schooled on Life Insurance & ended up buying a home security system😂.50 cents a day though?! Can’t beat that lol
I have a friend trying to convince me to get whole life. I've now been researching for about a week and all signs point to no. I think this video best described why it's not the "steal" they try to convince you it is. Big Thanks!
This is probably one of the most confusing topics out here so glad to see a video done on this certain topic man. 👍
Oscar Martinez please do further research and see my comment
Yes, thank you for helping us out! You're a good man going good work!
This is my 1st time learning about life insurance, and I am still super confused.
@@mirandaquinnn the insurance companies make it confusing on purpose hoping that the smoke and mirrors will make you confused enough to buy what you don't need. Just ask for the amount of coverage and the term you want and don't listen to the sales pitch.
@@travis1240 so much to learn
I wish I had seen this in 1970, when I bought my life insurance policy. 8-)
I'm studying for my life insurance license and this is really helpful, thank you so much!
How’d it go? I am in the industry now, and always trying to hop on here to get the pros and cons people are looking at it from UA-camrs versus financial planners.
@@Funnymike1026 happy to say I passed my exam on the 3rd try. (>70% pass it on the first try so don’t beat yourself up). I’ve been working in my office for about 3 weeks now and I’m a part time student so the hours are pretty lenient. I work under an agent and it’s definitely one of those careers where you get what you give. (The more effort and dedication the better results). I’ve actually recommended this career to many people since. Good luck
This isn't helpful if you are in the industry, because it's an incredibly flawed attempt at explaining whole life insurance.
@@miamysteryburns How much of your exam centered around whole life?
@@paulstutsman Hard to say, I’d say it’s about a quarter of the types of polices mixed together. Honestly my test had a lot on health insurance more than anything
If you have a finance degree you should talk about "net present value" of money. Simple interest vs. Compound interest. Mortgage acceleration through lump sum payments to reduce principle. I'm just trying to help you clarify terms and ideas for you viewers. You should really come out with an additional video on equity based "modified premium whole life products" I get the notion of buying term and investing the difference. I was doing that since 1979. The problem is most people do not invest the difference. People who make a lot of money can use life insurance in creative ways to protect large amounts of cash value on a tax-deferred status. BTW you are on track with most of advice. the 'four corners' are also called the 'Ben Franklin' close or comparison. Example: "Whole Life = my policy pays weather you live, die, or quit. Buying Term insurance is like flushing money down the toilet" I have heard all the arguments. "Dividends" on a whole life insurance policy are NOT "dividends" but rather a refund of an over payment on your life insurance policy. Look it up. FTC and IRS ruling in the 1970s.
Thanks Richard. I'm in the works of a NPV video but I honestly don't think people care about that subject. I'll still end up making it though. Thanks for your comment
Richard Surckla that’s why you buy term and invest the difference
Richard Surckla Or you could prepay the mortgage with the thousands you saved ny not buying whole life and save even more thousands in mortgage interest.
The other point to make is if someone dies if they have term insurance and has 30 or 40 or $50,000 in the market, their family gets both of them. Cash value life insurance as you said is absolutely the worst Financial product ever created. I really enjoyed the video, there's just some finer points that I think could be pointed out to make this not even a debate.
with IUL the beneficiaries can receive both the DB and savings
@@429mas at a ridiculously high cost compared to investing outside of an IUL.
@@icanmanifest not true if you had $1M in a professionally managed fund how much would you pay in fees my guess is well over $10,000/yr if the money manager is any good charging 1-2% in fees not including market losses
@@429mas whats the annual fee of an index fund?
@@429mas how much does the cost of the ART insurance inside the IUL go up annually?
Thanks for the video!!! Was told not to mess with Term, but now that you explained it well I’m going to stick with Term.
Only 2% of term insurance ever pays out. I'm an agent this was a very bad and misleading explanation of whole life. I sale term and whole and its based on the clients needs. Walt Disney borrowed from his whole life to start Disney
My boss was a very wealthy & financially successful man. He told me : " Anyone who comes to you to sell you something is there for THEIR benefit, not yours."
Tell your boss, it could be mutual benefit
@@gpds4932 It is Possible, but not Probable.
Lol, your boss never gave you a win-win-win deal? Or just a win-win? It doesn’t always have to be one sided.
All business everywhere is in sales. It's all about education. The more informed you are you can make the best decisions for you and your family ❤️
Would your boss, who's very wealthy, say there are any examples where you're sold something and it's to the benefit of the buyer and seller? If not, seems like an odd, cynical statement.
What a great video! Can you also talk about index universal life insurance?
Your place is gorgeous love the aesthetics!
Dave Ramsey explained it well too.
Don't invest with insurance.
If you die, they keep your cash value....
Its pushed hard because the agents get paid
on commissions of the price.
Video is SPOT ON.
not totally true. There's also an option to get both Face amount plus Fund Value. However it's not all available in all Life insurance companies. 1 out of 4 insurance companies i work with offer that.
Wow! Lots information I didn't know about whole life insurance. Thanks Marko
my pleasure shane thanks for watching buddy
Thank you for explaining this.
I was transferred to a new account and now on training.
I figured out now how it works. Thank you so much..
Thank you for an honest discussion of Whole Life Insurance. It all makes sense.
Thank you, Marko. You made me understand this insurance stuff and now I also understand that term insurance is a better option.
What is the best life insurance for a 60 year old person on social security disability (due to a heart condition that only worsens with each passing day) that wants to make sure that in case of their death that at least their funeral expenses can be paid? I worry about this all the time that no one in my family will be able to afford to bury me.
I like your "to the point" concept in your videos - thanks!
Love the way you explained everything Brother !!! Short and simple and Funny too lol , Blessings !
The best way to get ahead is to BUY TERM AND INVEST THE DIFFERENCE separately. Never use insurance as an investment, keep them as far away from each other as possible. Insurance and investments are like oil and water, they should never be mixed. Get an adequate term policy and invest the difference into a separate investment entity.
I’m so glad that I got Term. Great video!
Correct you got term ,but until when? 20 or 30 yrs. After that your insurance lapsed. When you get older you need insurance because we get sick like stroke, cancer etc. He explained about whole life with fixed interest, Now we have IUL, Indexed universal life. You can maximize it. There is option A and option B. In option A you beneficiary will get the face amount only not the cash value, but in option B your beneficiary will get cash value plus face amount. Not only that. IUL, you dont need to die, if you get sick like Terminal illness, critical, and chronic you can use your insurance. That's what we call life insurance with living benefits. If you want to know more about it ask ne how?
Rose Dilla yes term ends but depending on the age you can convert to whole life if needed or requalify for another term up to 20-30yrs again at a lower death benefit if you still healthy & still pay way less than the CV. Choosing option B means guess what, higher monthly premium. Why do all that when you can just invest that money yourself & it’s yours & become self insured, granted with discipline & if agents do their job we can help the client reach that goal. Why save for that money to only go back to the insurance company when your family can have both, term insurance also has living benefits also, most of the companies I write for have living benefits on their term critical/chronic illness up to 90% of the death benefit death does not have to be in the picture, terminal illness up to 100%.
Can you do a video on indexed universal life please thx.
You rock you broke it down I'm going term
Thank u 🙏 i almost got caught up in infinite banking until i looked at the numbers im good i will just get a term call it a day
Hey Marko, I enjoy your videos and you are providing some great info. I’m a Certified Financial Planner and some of the info you provided here unfortunately isn’t 100% accurate. Would be happy to discuss it with you and help your audience get a better understanding to a complex subject. Truth is many insurance and financial professionals don’t understand these products and it makes it even more challenging... Thanks
By all means, please elaborate on what he provided that was wrong.
Finally someone did a video on this!!!!!!
Part of it I agree. I do work for Primerica and I am working on getting license for doing Life Insurance. Term Life Insurance has cash value.
I can sign you up, when you are ready, but sooner the better. With the cash value in the Insurance is to Insure the company gets paid, just incase of you pasting. Soon as the term is up, the cash value is yours. That is with Primerica. There are always loop hole. I just have to take my test. I am done with the class. And Primerica offers more things; Vivint Smart Home (which I had for 3 years now, before I did Primerica.), Auto and Home with Answer Financial, and ID Theft Defense & Legal Protection with LegalShield.
Side note: When you have a Home Security System and have Home or Rent's insurance, it lowers the cost on the insurance. The reason behind it, your home has security to protect, if anything goes wrong. I have the information, hold on.
Marco back at it again with some straight facts 👏👏
Thank You. It was clear and simple to understand without any hidden objective. Thank you again.
There is a slight misconception here. you're not buying a whole life insurance for the cash value or to save money, there are other savings plans that are better tools for that. Insurance needs changes depending on what stage of life you're in. As he mentioned, term life insurance only last 20-30 years and the policy ends.
The average life expectancy in the states is 78yrs old. An example would be if you are 35 and you purchase a 30yr term life policy, you live till the policy ends. you're now 65 with no life insurance to give your family if you happen to pass away, and if you decide you want to buy another term life insurance plan again, there won't be any insurance company that would want to take you because the amount of risk at 65 yrs old is too high.
Whole life is good to purchase when we're healthy, it's not for the cash value. it allows a peace of mind that we can live through to our old age without worrying. Also majority of the time Whole life insurance would also cover Critical Illnesses and Disability while term life insurance might not.
There are definitely pros and cons for term and whole life, it is how the policy is used to solve a problem in the client's life.
Marcus you actually help me make up my mind you made a lot of sense. I was just about to cut a check for $409.25 to purchase a whole life insurance company to keep it going from a term that I had with my last company I left two months ago on a conversion. I’m glad I didn’t because now that I watched your video it really would not make any sense to do that. Thank you for saving me $409
What I tell my college students, "anything the salesman really wants you to buy is probably a great deal for him!" This is why they push whole life.
If your students listen to you, they will have a tough life. Does your statement apply to the "salesPERSON" that sells college education? If not, why not?
@@rlyle5804 I've never seen a university salesman. Please provide an example of one.
@@corybryant6244 What is a "university salesMAN"? I have never heard the expression.
R Lyle you literally were the first to use the generalized term in your statement. I just wanted an example since I’ve never encountered one.
@@cory.bryant Read my statement again. I used the term "sells college education". Since words matter, clearly it isnt the same.
this was the best explanation. Thank you
Im a financial advisor and you told the truth
Thank you for your honesty
Thank you because I wanted to know the difference. I still can’t believe whole life cash value goes to the insurance company!
Me too, I paid opp or cash value $600 a year and I have no idea that money is not mine. Now on I will pay only the premium. I took that Insurance for my kids what a mistake I did. $600x 3= OPP payment which won’t be mine. I am sad now.
It doesn't. This is misinformation from someone who doesn't understand what the cash value represents. Talk to someone who actually understands what the cash value represents.
@@mariec4531 If you've paid premium and PUAs which go towards cash value then you're not losing your cash value. It's increasing the death benefit by a ratio of about 3:1. So if you put in $600 towards cash value then your cash value will go up by $600 and your death benefit will go up by about $1800. So if you die the kids will get an additional $1800 in death benefit. In other words, the cash value payment is being reflected in the increased death benefit.
@@maxpruger837 and this is but one of the parts the presenter is missing. I almost bought into the “buy term and invest the difference” argument a few years ago. That argument falls down over the long haul when you go to renew those term policies. In my case my monthly term premium would’ve quadrupled when renewing at 54. He also didn’t speak to with whole life when you borrow against it, the principal continues to grow and dividends continue to pay out based on what your max cash value was so when you put it back, there’s actually more in there.
Both term ans w.l are great products. The difference depends on who the individual is and what is s/he end goals. Any great agent should assess each person's financial situation separately. The individual situation determines the type of policy not the other way around.
This video was extremely helpful! 😊 It's great to finally understand the differences between term and whole life insurance. Thank you for breaking it down so clearly! 🙌
He made a lot of statements not correct. Like term pay out never had to be lump sum and it can set how to be payout like you hitting the lottery. The reason for this is that can collect interest from the insurance while the beneficiary is alive. It is never about term vs whole life. It really depends on what client need and want. Can they fit to them
He is terrible explaining this
So the cash value on a "Whole" life ins.plan is you just donating the difference to the company with nothing to show for it on your end.That's a racket.Very well made and informative video.
In term insurance you're doing the same thing you're. You're paying cash which has a cash value for 20 40 60 years and 90% don't pay out
@@Rshen11 they don’t pay out because u outlive the term right?
@Clark yes most people out live term policies when they are cheap... try getting a term policy when your 60 or 80.. supper expensice.. morenthen what whole life will cost..
@@vi3tboitai yes you outlive the term.. you lose all the cash you put in..
@@Rshen11 yeah but that’s just the thing with insurance. Hoping you never have to use it. Pay a lower premium and more than likely a higher payout so just in case if something happens it’ll be ok in terms of financial aspect for your family. By time someone retires hopefully they have everything paid off money saved up and a retirement nest egg to where they don’t need that.
thank you so much. Finally I can understand what is term not life insurance. great job.
Is that correct about Cash value not going to beneficiaries? Your whole life policy should be going up in amount as you go along as well.
Also, there’s a lot of wrong info here on whole life. Although not good for 90% of people, blanket statements about all insurance companies is false and the rate of return, loan average, and dividends. I love Mario but this video is just not accurate.
If you read your life insurance contract, you only receive the face value, not the savings.
@@ChopOn414 The product is a terrible product for the consumer, if a person is recommended to this product, it is because their situation is dire or as a last resort.
@@johndewhurst3612 that’s just not true at all, maybe for one company, but it’s not across the board I can guarantee that.
@@johndewhurst3612 and that’s also not true lol, if they were in dire situation, perm would be the last thing that would get recommended, and you’d never make it through underwriting for term or perm in that “dire” situation