This Is Why Universal Life Insurance Is CRAP!
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- Опубліковано 7 вер 2022
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I am in my 40s and This is no time to reduce retirement savings. I want to max out my retirement funding and I also have another $200k in a savings account that i want to invest in a non-retirement account.Would it be better going to housing? Maybe own property and let it till im ready to move in at 65.
Research dividend millionaires and choose six to ten firms with over 25 years of dividend payments. Also consider working with an asset-manager to build a strong portfolio.
A good percentage of workers do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… now my dreams are getting bigger. Going from ($50k to $600k) is surreal all thanks to insights from a professional.
Mind if I ask you to recomend this particular coach you using their service?
Sonya Lee Mitchell is the fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Just like Dave said about bank and insurance company buildings... my Mom told me "Look at how fancy that casino is? Do you think they built such an awesome looking building by giving money away?"
Ramsey solutions has a purdy building too
@@Mr_Fairdale The Ramsey Solutions Building is built with "God's Money". Dave is only the custodian of those funds. And like all churches, God needs "purdy buildings" 😁
@@macromancer Whatever you need to tell yourself
@@jakeleisure8326 yep, sad really.
@@brandijonewman365 sad indeed
The very fact that most people don't know anything about an IUL makes me think they're GOOD.
“Some buddy from college all of sudden remembers you…”- basically. Lmao
Oh hey 'MLM dude', I don't have time to speak with you. Bye.
Life Insurance, 401K, Stocks, Bonds…eta.eta.. are tools. The value is in the strategy.
Dont leave all eggs in one basket. So everyone should have some life insurance. They talk like everyone is planning to put all savings into just life insurance..
Exactly. Sad so many people want to tear down a tool that has a purpose
Yes
@revanjg Agreed. But this tool is not recommended for the middle class folks. an IUL implodes on itself. Like they said, buy term and invest the rest.
@@revanjgthe tool is meant for life insurance not retirement savings
Nothing like Dave reacting to Tik Tok in the morning 🤣💀
I'm currently taking the Series 63 exam through FINRA and theres a section that defines what is and isn't a security. Guess what falls into the category of not.... Universal and whole life! I don't understand how it's legal for them to call it an investment
I has a very uneducated client claim to be a financial advisor. I knew that couldn’t be true. Turns out he sold life insurance.
Hey Michael IUL can have an flat interest rate of zero ,or one percent. That is why it is not an security. Securities can lose value.
*Keep in minding we’re not talking about surrenders fee nor inflation risk of the cash value.
I had a insurance agent tried to sell me a IUL, i said is it an investment and he went away from the question. It’s not an investment account so whole life and cash value agent talk like they’re financial planners and they’re not. It’s upsetting because they think I’m dumb and then can’t answer when i ask them about my risk factor and ROR.
Once you realize it's for the rich...they get breaks ...loopholes look deeper
its not legal for them to call it an invenstment
If you watch closely, every single person who endorses universal life insurance is trying to sell you something. Every person who says it’s bad generally says regular term life is better and isn’t selling anything
And he doesn't even talk about the medical underwriting you have to go through for term.
They're selling term life, and there are plenty of Advisors, CPAs and attorneys who don't sell anything that recommend permanent life insurance. It is what the wealthy and big banks buy. They are smarter than Dave.
Term is more beneficial to insurance companies than whole life or UL. A term policy is a bet by the insurance company that you will outlive it. Then they keep the money and you get nothing back. There are also plenty of options with whole or UL. Like a paid up rider. Also after certain ages you will not be able to buy Term. Then you leave your family empty handed.
@@jrproducerseth6205 sounds like the pitch of an insurance salesman
💯💯
“Banks and Life Insurance companies screwing you” 😂 sounds about right
Stay away from any "Advisor" who says always and never when it comes to financial tools. Usually the problem they have with them is either they, nor their sponsors offer those products. Dave Ramsey is case in point.
All tools are useful in some situations but none are useful in all situations.
The "stay away from these twisted people" is the only safe "always" when it comes to finance.
Their explanation, here exhibits their simpleton knowledge of these products.
How did you build your big headquarters in Franklin, TN Dave? If we should hate other companies for this, why not you?
So dumb.
He built that building by selling actual products and services that help ordinary people. Not just trying to sell something to earn constant commissions that takes advantage of the buyer. Most people are financially illiterate and Dave knows that so that’s why his advice is more always or never. It’s about building discipline and good money habits for many that never had them.
Exactly. He’s close minded .
Radio, podcast, media people who think they know everything just crack me up. Dave is no different.
Amen. Great response
@@c2s2942iul is a product hun
There’s still benefit for permanent life to give beneficiaries to cover funeral costs and other legal fees right away rather than having them to pay out of pocket until your estate is settled. Of course you should supplement with term life for bigger coverage during those years you have dependents on your income.
the point that this video makes should be required in all high schools starting in 9th grade and should be put the way you just put it sir. thanks for what you do.
This is an overgeneralization by Ramsey, he's not licensed so he hides his bad advice behind being an "entertainer".
@@danielschachle2054 how long have you been selling insurance?
4:43 that's exactly how I ended up being sold whole life. After finding Dave's videos, I got out of it though
Why cancel after one video? Dave says one thing, someone else says another.
I’m so confused. I’m studying for my life exam and it says that in universal life the specified amount is the death benefit plus cash value in the account… but you guys are saying the opposite?
So am I and these guys are shutting it all down I’m reading endless comments to really try to see if this is something I should do.
They are wrong. They’re mixing up policy types. Your research for the exam should prove that
Thank you for the info this is very helpful ,
My son had a friend trying to get him to buy a whole life/cash value policy...gave him quotes for their term and cash value policies...I showed my son that if he just took the term policy and put the difference under his mattress, that he would have way more money than the cash value policy would have plus the only way to get the money was to borrow it!!😱 And if he died they'd only get the face value of the policy, not any of the savings! Term on the other hand would give the face value plus all the money under the mattress...more if the money had been invested in a good mutual fund! The moral of the story is to buy term insurance and invest the difference in a good mutual fund!👍🤠
Why waste money on term insurance when your job company has group life insurance for you? Ok you dont get it if you lost your job with them but would get new life insurance for the new company. If you dont have a job, you cant afford anything anyways.
@@ychongy you can get ROP Term, so after your policy is up you get your money back. Obviously the monthly premium is higher but you can get some peace of mind and your money back.
Rather what I was thinking as well. Especially the point where you have to take a loan against the money you pay into the policy to create the investment portion. Give them your money, pay fees for them to take it and invest it....pay them a fee to borrow against it. Insurance companies make sure they make their money first.
@@ychongy Usually the group policy is no where near the coverage you need to provide for your family...burial maybe...💸
@@ychongy
What about your work doesn’t offer insurance?
I disagree with Dave respectful. First Depending on the UL policy you get it may ,or may not come with an cash value. Essential you are buying longer term life policy. In addition UL give you the flexibility to increase the death benefit later in life ,or lower it.
Dave is wrong by saying term is the only life policy to buy. As we get older term gets excessively expressive ,and Universal life are traditional more affordable. Definitely talk to an ethical licensed insurance agent ,but it is situational. One does not fit at all 👍.
Does anyone know anything about the Northwest Mutual T80 policy? I can't find ANYTHING that isn't from NWM.
I used to work for NWM. I know those policies well. Not a huge fan. What's your question?
As any true insurance professional would advice. There are some insurance products that are good for some but obviously not for everyone. Obvious it is wise to always do your homework before purchasing anything. Since people all have different situations there is alot to consider. Insurance agents with integrity are worth seeking out. They can add value to ones situation when placed in the correct insurance product.
100%
Definitely true. Just getting into this business and I am seeing the ethics of some pretty good agents and some not pretty good agents. Spot on 👍🏾
advise*
Dave Should have David McKnight on his show to actually talk to a professional about the IUL and how it works. Because dave does not know what he is talking about.
ever notice the only people who like IUL’s are the ones who sell it? If they were so great wouldn’t every financial person sell IUL make multiples of what they make currently. They don’t because they have ethics/morals and don’t want to sell clients a far inferior product like IUL
Your premium is locked for 20 years.. So if you max fund without going over what's allowed you can either use some of the cash value as loans to avoid taxes or surrender the policy for the full amount. The only issue I see is that they make it seem like the money is some how protected but that's not 100 percent true.. you can lose everything if the market were to crash aperantly.
I'd rather stick money under a mattress than to buy a trash value policy.
Yep. Sounds pretty much like whole life. When my mom passed all they paid out was face value. They didn’t pay out what she saved in it. That’s what they called her “cash out value” if she closed out her life insurance. Whole/universal life policy agents hate me because I will steer people away from their bs.
Whole life policies have in essence two parts. One is decreasing term insurance and the other is a "savings" portion. If one dies the day after the policy is purchased the death benefit is entirely from the insurance company. On the other hand, if one dies at 90 the death benefit will almost entirely be from the "savings" part. The cash value is the money one gets if one cashes in the policy. If one dies say at 60 with a policy contracted at age 35, the death benefit will be some combination of insurance payout and the savings part to make up at least the face value of the policy. What many think, and Dave often implies, is that one should get the entire face amount PLUS the savings part which would being having your cake and eating it too. The reason one can have an in force insurance policy at 85, 90, or 95 is that the death benefit is comings from the "savings" portion NOT the insurance part. That vast majority of term life policies never pay out anything (because the term runs out or they are dropped); that is why term is is cheaper.
The reply to this comment has more value than the video. Misrepresenting another product or entity for the purpose of making money is typically an illegal action or at least a reflection of ethical behavior.
Good
Thought that was only for whole life. Universal life is suppose to pay out both because you are paying more into it for the investment side?
@@ychongy universal life gives two options, either the face value or the cash accumulation. The Indexed Universal Life gives both the cash value and the death benefit.
Thanks
I know buy term and invest is the way to go and I have a strong resistance to place my business with any company that provides these IUL and whole life policies...Is there a company out there that ONLY provides term life insurance and none of the cash combo stuff? I can't condone an agent that can do buy term and invest and also provide to their client IUL.
Primerica. Buy term and invest since 1977. Also new term products released are extremely competitive in price and feels good doing business with a company that stays true to this concept and doesn’t sell out like other insurance companies
Yeah but soon as you sell your investment you lose half from taxes in a IUL ITS TAX FREE
What if you out live your term policy?
@@HolisticlyMiraB first, I'd be thrilled as heck that I'm still alive! Best problem ever 😅😁... I'd be self insured by then, with money accumulated from the "invest the difference" part of the equation. And it won't be death benefit cash, as in I can use it while I'm alive.
I’ve had every type of agent show me and mathematically buying term and investing into mutual funds that average 9-12% is better
I'm going to start a show and give advice on topics I know nothing about too
Says the life insurance salesman
I’ve never seen something so mischaracterized in my life. He is saying how bad IUL is without ANY real specific reasons. 👎🏼
@@astroman30um what is wrong with making money selling something you actually believe in? We have to eat just like you. It doesn't mean that we are selling you something we know is not good for you. If the policy is designed properly, then it is a great product to have.
@@lemarcusbrown1708
1. After I’ve been with a major LI company for years, you and I both know it’s a bad product.
2. ULs, IULs, VULs are worse than whole life policies. Trash value insurance is never a good purchase.
3. I get tired of hearing BS phrases like “properly structure” “net death benefit” and “equity.” These are words that lying insurance agents use to steal money.
@@rukiddingmeNJwell he does give specific reasons, but it reflects his extraordinary lack of understanding and sophistication… I find it so hard to believe that so many people listen to him… arrogant, overconfident about things he seems to know little to nothing about. ULI can have a role in a balanced portfolio for some investors…. You have to understand the product though
The accumulation in the UL has a beneficiary and the money goes to whoever you put as the beneficiary… at least with the insurance companies we work with
ULs are garbage with high fees/commissions. The ART (annual renewable term) and expenses eats away the cash value leaving customer to pay out of pocket to cover the term. Scam.
Are Lirps the same as whole or universal insurance?
Modern lirps are IUL or even VULs
If an insurance agent tells you that IUL will make you rich, he is lying to you. IUL is designed to protect your money! it is a backup plan that allows you to invest the rest of your money with more confidence because you have a plan B. Please guys, do not paint IUL as a scam. it is a great tool if it is sold with proper expectations.
Why IULs are garbage:
1. Money never enters the market - With an IUL, the money funding the cash value portion of the policy is never actually invested into the market. Instead, the insurer holds your “cash” and pays a return on the annual growth of a specific index. Anyone selling IUL are not required to have a securities lIC.
2. Growth potential is capped - While most policies have a “floor” of 0% which prevents your cash value from dipping below what you put into it, your growth potential is capped, too. For example, if your policy limits growth to 10% on the index and that index out-performs that percentage, you’ll still only receive the value of 10% in your account. The insurer keeps the difference.
3. No dividends - Dividends are completely eliminated in an IUL policy. Not having the chance to reinvest any earned dividends, as you could choose to do with an individual investment, means you could miss out on a great deal of money from dollar-cost averaging over time.
4. Fees, fees and more fees - IUL policies are packed with fees and charges that will eat into any cash value accrued.
5. Rising costs - The internal cost of insurance continues to rise as you age, which can limit the amount of money going toward any potential cash value. All universal life is A.R.T ( annual renewable term) PLUS: Almost all cash value policies have these “features” built in. • You’ll accumulate NOTHING in cash value for the first few years the policy is in force. • The cash value earns a lower rate of return (often just 2%-4%) than the potential return you could achieve if you put your money into a vehicle such as a Roth IRA in the U.S. • If you borrow from the cash value, you’ll pay it back plus interest. • If you die with the policy in force, beneficiaries receive the death benefit (less any outstanding cash value loan balance) while the insurer keeps any accrued cash value. Unless you have the increasing death benefit option (option b) the consumer will pay more for that option. The consumer always gets screwed when investing in these policies. The only winners are the agent and the company. The BS I hear all the time is it has to be "structured properly." I have collected 64 policies in the last year and I haven't I seen one structured properly.
Dave is Right once you die you don’t keep the saving you get the face value of the policy 😂 kinda sucks not sure why people think this a smart idea
The reason you get the face value is because it's more than the cash value. Do you want less instead?
Thought that was only for whole life. Universal life is suppose to pay out both because you are paying more into it for the investment side?
@@jrproducerseth6205 "You" don't get anything. The beneficiaries get the DB. "You" lost money because the LI company keeps it.
@@jrproducerseth6205Your thinking makes zero sense. Why would you be okay putting your hard earned cash into a life insurance product and not be paid the face value + the savings you put in when the insured experiences death???
I have a bridge to sell you!
@@Lionheart_He-Manyour money grows 4-13% every month. Your loved one gets a huge check. Sounds like a win to me.
I just want Dave to explain the infinite banking concept.
He won't waste his time trying to because it's a bunch of convoluted words meant to confuse people into thinking it is useful. You can't become your own banker because you don't have the access to free money. Infinite banking is simply paying an insurance company high rates for you to take your own money from your back pocket to your front one.
My friend your all wrong and don't have a clue only if you knew the truth you are truly missing out on something that would change your life but you have been blinded seek full knowledge and understanding then speak about a IUL
@@Lon1001 this is very false, infinite banking is a great concept
Uil can be extremely useful for tax basis and funding your own investments for the future you don’t necessarily need to use an insurance as an asset protection
It's called "IUL." And it's garbage with all the high fees/commissions and capped gains.
I believe that this is a hypothetical rant
This is why Dave Ramsy isn't popular lol
But ARTs are only included in term life insurance not whole or universal life?
ARTs are included in all of UL policies including IULs.
what if you just use a universal life insurance plan as a tax shelter to loan money out against the policy (tax free) and continually drain your holdings... is this still as stupid? Pay for the policy instead of taxes on that money which would be much more?
BORROWING against your own money only for the insurance company to charge you interest to BORROW against your own money, and you think this is a good idea?
@@astroman30 what interest? there are many ways to structure this and Ramsay is dismissing nuance and dismissing the many accounts of success despite the obvious slimy nature of any aspect of the financial industry.
@@charleshaycockcomedy Did you not know the LI company charges you interest to borrow against your CV? Stop giving advice if you don’t know how trash value insurance operates.
@@astroman30 my point is, what interest rates are you looking at under what structure, plan, and company; and does that still negate the point I made of using the policy to leverage tax breaks instead of using it as actual insurance. I don't remember giving anyone advice or telling anyone what to do...
@@charleshaycockcomedy you offered no advice. He's Just another opinion siding with one view on the video. Real constructive eh?
I love it, Dave. I'm an agent but I always push term lol
So term is better than whole? But when the term ends, what should we do?
@@reese85 when the term ends you're locked in on a higher premium because you're older, you may not be insurable at that point as well. But if you're relatively young, you should qualify for a 30 year term. Dave recommends buying term and investing the difference because term is way more affordable than whole life. Investing the difference in good mutual funds or your retirement fund (401k) is a better investment in the long run. Less commissions in the agents pocket and more in your retirement
@@guitarwok but why buy anything when your job company already has group life insurance to cover your family if you die? If you lose ur job and dont get their life insurance anymore, you wont be able to afford any type of life insurance anyways. Until you move to the next company to get their group life insurance. 🤷
@@ychongyassuming the average person does this, if they die between jobs, this means they leave any dependents without an inheritance or money to replace their income, repay debts or pay off a mortgage. Tough.
I hope you also sell whole/permanent. Otherwise you’re betting for an early death.
how do i get out of my whole life insurance?
cancel it
Invest in what? Mutual funds? Paying 3-5% management fees that eat up 2/3 of your total growth to have ALL of your money at risk in the market. Also... it is an option to also have your savings ADDED to the death benefit.
ULs are worse than whole life. The ever increasing term (A.R.T.) eats up the cash value leaving you to pay out of pocket. Oh sure, you go for option B that would require you to purchase a PUA to an ever increasing term. Scam.
If you max out the account it will pay for itself and you can borrow against the overall value, three consecutive years, to access the death benefit while still alive!!! Each year the policy resets after a loan and you can take out another loan until the cash+death benefit value is depleted, if you choose to do this; but smarter if one would use it as a bank and pay back the loans after investing in appreciating assets and realizing the returns. Incorporate a trust that stipulates how distributions are to be taken and that policies are issued for any family members that are born with the death benefits added to the estate. This is how the Rockefellas and every other wealthy family established generational wealth.
So, you upfront large payments to build up your CV and pay the LI company interest to BORROW against your own money? Rocefeller's lived during a time when very few banks loaned out money. Besides, they got rich from Real Estate and other investments, not trash value insurance. I like what Warren Buffett does is to purchase existing WL policies from old people for pennies on the dollar and cash them in when they croak. Brilliant.
PFA premier financial alliance is still doing this. Where are they at?
Wondering the same thing. I keep looking for Dave to talk about this particular group to see.
First mistake - if you purchase an option B increasing death benefit, then it equals face value plus cash value at death.
Second mistake- term insurance will end after 15 or 20 or 30 years…right when you need it! UL is permanent insurance and its costs more because it will be there so long as you want to pay the premium. Also, it is good for legacy building because the death benefits are tax free!
Dave- stop being so one sided and admit there are good reasons to have permanent universal life type insurance!
Why do you need insurance benefit in 20 or 30 years? If you've been smart you've been taking the hundreds of dollars a month wasted on whole life and actually investing it. In 20 or 30 years your dependents are grown and you should already have a comfortable retirement savings to leave to your spouse.
@@Lon1001 thought the goal was to leave money for your family, including kids! No matter how old there old and won’t it be better to leave them as much money as possible?
Universal life insurance is not permanent. Eventually the cost of your premium will eat up all that money you thought you were saving. My own agent even showed me at what age my policy was projected to lapse should I continue just paying the bare minimum.
My father had a UL policy too. It lapsed 18 months before he died. To continue paying the premiums through to his death would have cost a quarter of the death benefit.
I'll do my "legacy building" through my investments thank you very much. The math actually computes.
@@reese85 Yeah, leave them your 401k and IRA money you didnt use. Why pay an insurance company to save it for you>?
@@donjohnson1416 because most people don't save. There are other products like a paid up whole life. It becomes paid up in a certain amount of time that you keep till you die.
Thank you for clarification, on Index Universal Insurance.
There's nothing really useful about this insurance other than it uses the term Universal. That's why always ask questions to people with real knowledge and compassion to guide you in making decisions like this or do your research. It will save you a lot.
The key is diversification! Do not put your eggs in one basket alone. Learn for yourself from different experts and be empowered to be your own money managers. Gather the positives of each experts. I would rather have a multi-functional solution and the most powerful financial tools ever designed than not having one at all! 😊
Ok guys , So witch life insurance policy is a good one ? Is there one out there ?
Go see an independent insurance broker (not one affiliated with any particular insurer) and get them to find you the best term insurance plan you need.
IULs are pretty good. They offer living benefits and the payout u receive would be ur cash value you’ve accumulated and face amount you purchased. Not all policies are bad. Yes their are bad ones but still also good ones as well.
@@shiamoua4189 if you receive the full face value and all the cash value accumulated. How does the insurance company make money? What portion do they take? The only way you can receive all of your money is if you invest it all into good mutual funds, good etfs, and dividends.
Hi! If you want affordable and just Sickness and Death Protection go to term policy, but the cons from that if you didn't get sick or die before your Term lapse, If you renew it, your premium will be 10x higher. ( Term is better than no Insurance )
If you want Policy that has cash value , face value that increased and have sickness and death protection as well as your premium rate locked in, go for IUL. This is permanent so the longer you live, your face value go up.
How can I explain to my 73 years old Dad to just buy Term and invest the difference ?
Tell them that the insurance company keeps their cash value if they don't cancel it.
your case is a different one... not a lot of insurance companies will sell term life to a 73 years old male (because you know the chance that they need to pay is high)... or at a very high cost. So if your Dad have whole life already, just keep it.
I don’t get it because mines never goes up and stays the same monthly every month
but see your cash values grow year by year, keep up the good job. u will not regret it.
It's funny how Dave and this guy are complaining about the fees and commissions on these life insurance policies yet Dave is always advocating for people to buy into loaded mutual funds that are actively managed and charge a 5.75% commission. Most people would be better off just buying term life insurance just like most people would be better off buying into a no-load index fund.
What part of "The insurance company keeps your cash value" do you not understand?
@astroman30 Clearly, my comment went right over your head.
@@AK-47ISTHEWAY clearly. You don’t what wtf you’re talking about
@astroman30 Clearly, you can't read. Dave is a hypocrite. Yes, Whole Life and Universal Life is a rip-off, but so is buying into actively managed mutual funds that charge a front-end sales load. The only reason he is recommending people use one of his "SmartVestor Pros" is because he gets a kickback.
If you're able to invest more than government tax-free investment warranties like 401K, then IUL can be used to shield your money from taxes.
Otherwise, 401K and similar products remain more valuable investments for middle-income earners. UIL caters to wealthier individuals capable of investing beyond the limits of a 401K government allowance.
It's called, "IUL." At least try to get it the letters correct with your bad advice.
@@astroman30
Thank you. I did the correction, but not sure what was my bad advice.
Seems like everything's a Gamble. Need to focus on how to grow your money without stupid risk. Save save and get out of debt, slow growth better than losing everything making someone else's rich.
Would you recommend term life insurance?
100% of the time.
@@cullenmayes3370 No, not necessarily. Term life is like a baby bike with training wheels. Let’s hope you grow beyond that and 1035 it.
@@edmondinc1 I should clarify, term life is the ONLY type of life insurance that should ever be bought by the vast, vast majority of people. Not that everyone should always have it, there are certainly many people who need no life insurance
@@cullenmayes3370 A lot of people have insurance provided by their employer which only leave them to the investing part of the equation. Insurance companies do not provide that through insurance. They do however, provide investing services. Just be certain you are having the correct conversation when contacted.
He is pitching term life insurance. He sells his show as a lead for term life agents.
He endorses a product he likes....so?
The bottom line is that you are never totally covered by any insurance policy. You would be better off putting the premium money in a mutual fund.
That is correct 👌 most people think they will be rich after they die and I think life insurance is a big scam 🤔
Alternative is to invest into which vehicle ?
Matching 401k and/or Roth IRA.
Researching becoming insurance agent, once do well in that Series 64,65. I told them no Whole life refuse to sell those. IUL backed by S&P500 QQQ.
IULs are garbage with high fees/commissions and capped gains.
@@astroman30 Explains why If sell I get 1k-1800 Commision
They will pay less than what pays out
Stick to term insurance and invest completely independently.
I have an agent that has been bullying me into getting ULI. I knew something about it was fishy. Thanks Dave for confirming my suspicions. I’m definitely blocking this guy.
No one should be bullying you
Dave is WRONG and loud and WRONG...
@@tysondavis9684 Jenn, Don't listen to these lying POS salesmen. IULs are garbage with high fees/commissions and capped gains. The ART (annual renewable term) and expenses eats away the cash value. Scam.
Where to get term life insurance at 65?
You don't need life insurance at 65. Just save for your funeral expenses.
Mad that the younger people are getting smart and older people not liking it
You are the best 👏👏👏
because everyone dies, unlike insurance for other things in which they might not have to pay anything out, in order for them to make money they must pay out less than you give them
Not true at all, I won’t pay anywhere close to the amount my policy is worth.
That is what happened to me. Paid faithfully for years and it finally became valueless.
Sorry to hear. Did you have a whole life policy?
@@maryhorwitz845 It was Universal Life. I cashed it in about a year ago, as the cash value and death benefit were decreasing every month. I had no more reason for death benefit protection anyway. I’m single, no debt or minor children.
@@jeffnunes9780 how does that work? I thought universal life was more expensive because you paid more monthly so the extra gets invested to either save your policy or in a great world make more on top of face value?
It happens when a bad agent sells you a policy at the minimum monthly needed instead of the appropriate monthly needed to keep the iul in good standing
@@ychongy the cash value of a universal policy starts to decrease extremely quickly due to the increasing cost of insurance each year if you are investing try universal if you're looking for protection try whole life or term
Within this video, universal life, index universal life, and various term life insurance programs is covered that perpetuates the confusion within the market. Universal Life and Index Universal Life are two different programs. Term Life insurance has various aspects (e.g. renewable, decreasing, level, etc.). I will stand by and wait for anyone in the Ramsey ecosystem to explain where you can invest within the market and have zero exposure to market volatility and principal protection.
"programs is covered that perpetuates the confusion within the market." Huh? You remind me of Damon Wayans on In Living Color trying to come up with words he made up to sound intelligent.
So what's is the best?
term
1. Unless you Max Fund and then premium always covers the FV and you can actually stop paying premium.
2. Plan A is Saving plus DB!
With inflation currently at about 10%, my primary concern is how to grow my reserve of 240k$ which has been in sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains every day, I need a remedy asap
IUL insurance you get 7-10% Guaranteed interest do your research IUL IS GREAT AS LONG AS YOU SET IT UP SO THAT IT IS FLEXIBLE FOR YOU. Dave is so old school and stuck on his old school ways. Things have changed in the IUL INSURANCE from years ago just find a great agent and make sure you get the least amount of death benefit so the advisory doesn’t make a commission. If you get the most amount of death benefit you will pay high commission just remember that.
@@Marquie22 IULs are garbage with their high fees/commissions and capped gains.
@@astroman30 And you must have a bad contract and set yours up all wrong, I haven’t witnessed this.
@@Marquie22 you haven’t witnessed with IULs with high fees and capped gains? Either you’re lying or stupid
Dave has done a great deal in helping people get out of debt. Thats his target market. The upper clients have different types of advisors and they use Permanent policies in bunches for different reasons that this space isn't enough to elaborate. The wealthy don't listen to Ramsay. Now the real question is, Are you going to become financially independent following who's advise? The one from broke mentality or the one from wealth mentality. JC Penny, Walt Disney, Ray Kroc (McDonalds) They all used permanent policies to support their businesses. Maybe Dave should talk about why. Also he should remain teaching people how to get out of debt. That way he don't taint his name by spreading misinformation.
"..this space isn't enough to elaborate." Did you seriously just type that bullshit? You have ALL THE ROOM IN THE WORLD to type a retort. Yet, you know Dave is right. "JC Penny, Walt Disney, Ray Kroc (McDonalds) They all used permanent policies." These folks got rich from their products, NOT FROM INVESTING IN TRASH VALUE INSURANCVE. They lived during a time when very few banks loaned out money. Try harder.
Could you tell me how UIL helps a middle income person get to rich/wealthy?
@@CCTENG2022 It can help a middle income person get wealthy by giving them access to loans at a flat rate (around 4.5%) if you're looking to invest that money or help them build their retirement account without the risk of losing money like 401k or Roth IRA
@@CCTENG2022 Check out books or videos by David McKnight, Doug Andrew, James Stoddard Jr., Patrick Kelly on the topic.
There is a reason rich people have LIRP's(Rich Person Roth). Maybe if you thought differently, you might see an advantage for these. Has anyone on this post that is commenting against it, done any research to find out why it might be good for investment vs just for life insurance? Just saying, stop thinking and start researching.
BORROWING against your own money, and you think this is a good idea? No, Sport, I can't think of one reason why trash value insurance would be a good investment.
@@astroman30 oh wow great point, you need to get this info out to all the rich people that use this. There is a reason it is call The Rich Mans Roth. But you and Dave keep saying what you say and then those that use it for the positives will continue to use it for those reasons and hold on to our money.
@@jackk09 Unless you're a billionaire who needs to pass assets along to heirs, no need for this garbage. Do your homework.
@@astroman30 ha ha ok
@@astroman30fr homie acting like hes bill gates😆
@astroman it has nothing to do with being intelligent. The word choice I used is intentional. Most people know that ccuniversal life, whole life, and indexed universal life are completely different. A closed mind does not grow.
It's all trash value insurance. Just let me perpulate my congongulate of what the system of the formulate to bibbity bobbity boo.
How about non participating Universal life
Index universal life has cash value that is how they sell it and they spin it opposite of what you’re saying, term is a rip off. It’s for the short term. People saying it isn’t want you to invest with them. Just understand how money works and diversify. Learn as much as possible. I don’t believe anyone. I’ll learn for myself. Sheesh.
Carole brooks flat 1/40 leopold rd Felixstowe ip11 7 np worked in life insurance and done a lot of the elderly out of there life savings she has the cash stashed somewhere but where all her companies she worked for are now bankrupt/ get justice for her elderly victims/
Wow, this is such a smart opinion from these individuals (...NOT) Seems like this gentlemen prefer to save cash under the mattress and if you are the provider of the household leave nothing behind to you loved ones but liabilities such as your home mortgage. IMHO these guys are way too emotional about it to be trusted. Feels like a view/like trap.
So how long have you been selling IUL policies?
@@brycehoener5610 Financial Educator. Solution must be focused on the individual needs. There is no copy/paste recipe for all people. If you have a estate, and you are finance savvy, there are many options. If you do not have a estate and not finance savvy, there are not too many options. Dave wants to apply his high-level and articulated advice across the board. In reality, executing such advice is not feasible for everyone, not even for people with degrees in finance, economy or similar. Don't forget is the "The Ramsey SHOW", not "The Ramsey Licensed Financial Advice". Show business is view/like count. Advise from a Licensed professional business is customer success.
@@edwinmb You don't need a licensed plumber to know what's inside the septic tank. Try harder.
How well does insurance work during hyperinflation?
Good question!
Yah i got sucked into buying one of those from a "friend" from church. I got so angry when i was taught exactly how it works. I had to learn everything about that junk. Its not right for anyone. PERIOD.
Same here with a former coworker, good thing Dave helped figure this out after one year and two very large annual premiums and doing more research and discovering the truth about ULI/WLI.
Another big scam perpetrated on the American people 😢
read information about it from everyone but dave 🤣 he’s trying to get you out of debt and not trying to make you rich :/ this has been around FOREVER, look at harbaughs contract with michigan literally one huge UL, gets paid more each year because of it. oh and it’s tax free? what else in this world is tax free besides that?
love dave and all the things he says but he doesn’t know enough to talk about this stuff he’s lying to everyone watching go do some more research
@@zechariahpolkinghorn358 Harbaugh's contract is not a UL policy. Where did you come up with that Bullshit?
@@astroman30 look it up boy 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
@@zechariahpolkinghorn358 I have....it's a CONTRACT not a policy.....type a few more emojis you child.
Is everly a good policy ...!!??? 4:57
If you'd like to learn more about the IUL, let's talk soon!
Have term life through work for next to nothing. Once I retire, I will not have life insurance as we won't need it. Self insured is the way to be baby !!
Self insured?
@@reese85 yes. All that means is that once you cross a certain financial mark, you don't need life insurance. If I die tommorow, my wife is fine. Everything paid for including house and 1+ million in cash and investments . Don't need insurance to see her through her life.
@@Bob-yh7ir but wouldn’t she have more with the life insurance? Unless your worth 20million plus than yeah! Life insurance would be pointless. But idk about being worth a million!
But if you were to get terminally sick before then you will eventually get fired and have no life insurance, then if you die you lose.
@@reese85 yes but is it needed? The answer is no. We have more than enough. A 100 or few hundred thousand more does nothing to change the long term outlook
Making money is not a fortune, it is skill and if you want to become a millionaire, learn high income skills and it will you off. a fellow creator
I actually agreed with this until they started talking about whole life and universal life like they are the same product, which is a very common mistake with people that trash whole life. While whole life and Universal life policy's are both "permanent" insurance, they are completely different. Dave actually explains Universal life pretty well with his two different components concept.
Nah.....they're both garbage. Mr. "net present value" Paulie.
@@astroman30 Depends on what your looking for I guess
Thought the same. They dont work the same.
Permanent is whole life...All policies are whole life except for Term
@@nikki1192 That is not true. Whole life and the UL products are completely different forms of permanent insurance.
Life insurance is useful if have little to no assets and dependents. That way it can help insure the care of those that used to depend on you by someone else. To use insurance as a financial tool while living seems backwards.
Except term does the exact same thing, only much cheaper and better. Using it as a financial tool is literally the only "benefit" of whole life, and that's inferior to just saving & investing the difference.
@@ghjong001 100 - 20% = 80. 80 + 20% = 96. Beware of Dave's advice.
@@ghjong001 but your job company also has group life insurance to cover your family if you die? So the point is?
I got sold in index universal life insurance policy while I was attending a meeting for a MLM company in Southern California. Fast forward eight years and due to missed automatic quarterly payments my account was closed without even a phone call. My address had changed, therefore never received any mail. Had the company sent anything. The way the index universal life policy was explained to me was in about 10 years it would be self funding and they would recommend beginning to over fund around that point. Yesterday I ran into a vice president of a competitor company for the one that I was sold a policy from and they Explained how an Iul works behind the scenes to me. Now here I am
Sorry that you got scammed.
They are like a bunch of angry Primerica agents lol!!!
That’s what I was thinking lol
What life insurance SHOULD I be paying for? Anyone know?
Term, term, term!
Term, up through at least retirement age, and start the policy before your birthday. Be sure to insure yourself with FUTURE needs in mind. $100k doesn't go as far it did 20 years ago, and is going to pay for even less 20 years from now.
Etfs, mutual funds, dividends. Thats where life insurance gets their money from to pay you and keep some for themselves.
listen to this man and you will forever be average at most
Says the insurance salesman.
100%!
Buy term and invest the difference works on paper. Then life happens. People spend the difference. Then they reach an age where their term insurance has expired and they no longer qualify for or can no longer afford life insurance. There’s a place for term. There’s a place for Universal.
Bullshit.....trash value insurance is a scam. You like it because you sell this garbage.
He doesnt know what hes talking bout.
Term and permanent insurance are not the same thing. They are completelly different tools for different goals. Its not an either/or. I would never buy permanent to cover a mortgage or kids college funding in case i die. And i would not get term to settle estate taxes or some other high net worth tax strategies. This simpleton talk of should i buy perm or term is ridiculous.
You don't make any sense. Try harder.
Its the same as VUL its a scam
Everything has a purpose. Sigh. Many people on here hating on insurance companies and banks... And speak from partial knowledge or none at all. If a VUL is all you have and expect to safeguard your future... Yes you will be disappointed. Diversify.
How do you fix this issue if you get a stupid whole life 🤦🏻♀️🤦🏻♀️🤦🏻♀️
Cash it in...buy term.
I dont think it is cookie cutter, I have different vehicles/accounts for different uses. I have whole life, IULs and term.
What a stupid way to lose money.
Well it remains to be seen if it is stupid. I'm doing pretty good as of now. You keep putting your money in these banks and viagra/cialis accounts.
@@deuceknowledge4500 What part of “The insurance company keeps your cash value” do you not understand?
@@astroman30 just told on yourself , wish you the best of luck with your business practices and endeavors.
@@deuceknowledge4500 Told on myself?? You mean, I told the truth. Do you not believe the LI company keeps your cash value? Your level of stupidness is astounding.
What about all these "cash value" life insurance all the life insurance people pitch. Never liked life insurance.. if i die I'll just leave my family with everything i got. My computer and tv.. lol
You could get a max cash value whole life on your parents and split the monthly with your siblings.
Might as well have lots of debt and new things to pass down. Since no one needs to pay your debt after death. Maybe your spouse in certain states will though.
The only known investment account that yields a minimum 5% interest rate yearly no matter how the stock market does. An account that lets you withdraw from your cash surrender value at no fee or penalty while still entitledto your entire death benefit. Im sorry Dave but I'll have to go against ya this time. I think you'd have to be an idiot not to love this account
Pay an insurance company 8% interest to BORROW against your own money, and you think this is a good idea?
@@astroman30 Actually paying 4-6% and receiving avg 7-12%. The beauty is that you do not need to pay back the loan if you don’t want to. It just deduct from the death benefits
I had someone trying to sell me this policy IUL and my gut doesn’t sit well with it. I have term and I will invest the rest.
IULs are garbage with their high fees/commissions and capped gains.
@@astroman30 I can tell you if you are structuring these IULs properly for the client, there is not much money being made. If you are designing a policy based on Target which is agent commission, then yeah the policy is probably garbage but so is the agent. But with all life insurance, if the face amount, terms, and client funding is all based on your own arbitrary numbers, it's all garbage.
Insurance agents make less commission when they write a universal life policy vs a term life policy
They must be with the wrong carrier. We made waaaayyyyyy more money selling ULs than term.
Would you take financial securities advice from an investor who hasn't been educated in the field since there certifications and licenses expired in 1996? Would you trust and believe in their knowledge enough to invest your money where they think it should go? My guess is HELL NO! Yes, a person can hold certifications in both of these fields. However, that is not the case here. Dave has not been in the insurance industry in 30 years! Things have changed since then. Get the CORRECT information from those who are licensed, certified, trained and educated in the insurance field, the companies and the products.
You don't need a licensed plumber to know what's inside the septic tank. Trash value insurance is a scam. You're just pushing this garbage because you sell it.
That’s why I have PUL instead of a IUL
PUL?
I only listen to Suzey and Dave!