I've Been Investing $1,000 A Month Into Whole Life Insurance

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[stevektx]

You won't be taxed on whole life on a loan from the policy. What was the death benefit value? There is a lot of information not provided in this Shame....

[DoctorMcFarlandStudios]

Not all whole life policies are created equal. A policy with a mutual based company can give you guaranteed growth with compound interest all tax free.

[myaffordablehealthcare]

What he's saying is, "Why pay fees for life when you can pay fees for my mutual funds?"

The caller says the surrender value is worth more than what he's put in, after 10 years...meaning he made money, and Dave, without knowing any details, suggests to liquidate and put into mutual funds. If he was being honest, he'd find out details. If he was being honest, he'd recommend index funds instead of mutual funds. But, let me guess, he recommend the investment he makes money on.

If you invest in stocks: index
If you want a death benefit: term
If you want to preserve wealth or want retirement cash flow: whole life
If you want to diversify: do all of the above

[matthewhammond]

So Dave Ramsey says that the guy has already lost his shirt by even being in the Whole Life Policy, but then the guy says that his cash value is higher than the premiums he paid in over the 10 year period. I like Dave Ramsey for many things, and he is right on about paying down consumer debt, etc, but it is irresponsible for him to simply make a blanket statement about anything including Whole Life Insurance without knowing all of the details...This guy has over $120, 000 in cash value sitting in his policy ready to be used tax free for wealth building investments not even counting the Death Benefit on top of that, and all DR says is get out as quickly as possible...Give me a break...

[elmateo]

So many whole life insurance salesmen freaking out in the comments :P

[dennisbavin]

Dave Ramsey doesn’t know very much about Whole Life. Good luck to any Ramsey fans out there. You will need it.

[mikeallen]

my dad started one of these policies many years ago. i cashed it and invested it, was the right things and i managed to retire early.

[matthewstewart]

Imagine paying $1000 a month for 20 years and the insurance company just keeps your money when you die

[phonxayphonseya]

anyone have advice on closing a a wholelife for my 75 yrds old grandma? i font think she can get anything else. and does she even need insurance?

[nassiben]

I have " NEW YORK LIFE VARIABLE UNIVERSAL LIFE ACCUMULATOR PLUS " and paying 500 months and I'm confused what dave say

[sunsetrxpharmacy]

WoW, what you just did to this poor guy. You destroyed his life. Stop given investment advice.

[planBdeveloper]

Really? You need to read Nelson Nash. If it's with a Mutual co. stay in it! How come banks buy a ton of it then?

[timmyireland]

Whole life insurance is no longer sold here in Australia

[LaughingOakFea]

Not being in the room I wonder if the clarifying question off camera was asked what kind of Whole Life Insurance policy this was... Dave is right in saying MOST Whole Life Insurance is a waste, but what if the guy had a Dividend Paying Whole Life Insurance policy? Dave's answer would be terrible in that case. Just wondering

[agesandup]

Its not an investment, its an asset. You don't 'invest' in whole life policies for the return, you do it for tax efficiency and safe growth as part of a full financial plan.

[OpenMindedNews]

what about the interest gathered? can you not take it out tax-free?

[mynamemaranda]

My grandparents set one up for my brother and me. It's already paid for. I'm not sure how much is in there or what a whole life policy is. Both of my grandparents are dead and my mom doesn't really know much about it. We get stuff in the mail about it but it do say too much.

[kalillionaireelsantos]

Dave Ramseys is clue less and all insurance companies are not the same....do your research!!!

[sawtoothbygeorge]

Not necessarily true What I might do is to stop paying the annual premium or let the dividends pay the premium, if any, and let the cash value grow. The death benefit can increase and if you are paying $12, 000 per year in premiums you most likely don't need the money. Another option is to reduce the premiums to zero by taking a reduced paid up option. In conclusion, unless you need the money for some emergency, at least do the reduced paid up options and keep the policy.

[teresavict]

Are u supposed to get money back if you cancel a whole life insurance.