Term Insurance vs. Whole Life Insurance

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[elmateo]

People don't buy whole life insurance. People get sold whole life insurance.

[lionelhuts]

I cannot find a single person on the internet promoting whole life that isn't also an insurance salesman.

[edzart]

The fact that you all didn't "shuv" - whole life down the viewers throats was impressive. I like Dave Ramsey's stance on Whole Life but, the angles you all took to break whole life down added even more clarity as to why I would stay away from whole life. Thank you TMG :)

[Mrrlamb]

Good info... Thanks! And the Boba Fett cup lol

[j.a.]

Can you do a show on the conversion aspects of term life policies? Kind of difficult to understand for ne

[ebear]

"Borrowing" your own money is enough to run.

[lyndapham]

I have a 250k whole life insurance since I was 26. I am 40 now and still paying monthly payments until I am 46. It earns 4.5% interest. I have kids, a mortgage, and my husband is a stay at home dad. Should I continue to pay for this life insurance or should I stop my $96 monthly payment to invest else where?

[moodahs]

Whole-Life Insurance is trash 🗑 Period...Buy Term-Insurance ONLY. Invest your own money in an Index Fund. You will be better than fine 👌

[logan_kassner]

Get a term policy young that has a rider attached to it allowing you to convert it to a permanent option. If your health changes and you can not qualify for another term policy - convert it to a permanent policy. In the mean time. Save that extra money and invest it, but actually do it!

[tomcarrow]

My understanding is insurance companies don't pay on 95+% of term policies because they either expire or the insured stops paying the premiums. However, they do pay on 95+% of their permanent policies as long as the premiums are paid. That's why permanent costs so much more... term they don't pay... permanent they do, statistically.

[vant]

Hi Money Guys,
My wife and I have both whole and term insurance. I’m 46 and she is 42. We pay close to $400 a month together for whole life and $35 each for term insurance. Should We continue with our whole life?
We bought it since 2009.
Thank you for your knowledge.

[bigtunadan]

What the insurance salesman doesn't tell you is he makes the same percentage commission on both policies. Granted, this may not be all salesmen. Food for thought.

[joehobbs]

Salesman make it complicated and confusing for a reason. It all sounds good but so many people have been ripped off by it. If you can’t explain it in one sentence so average person can understand it then it’s too easy to get ripped off. I keep hearing “if it’s structured correctly...” average person has no idea what that means and relies on the person selling it to them and making loads of money.

[ericarosemenasanchez]

Alright, I think I did something stupid. I am 23, no debt and make about 60k a year as of right now. My FA convinced me to get a 50k whole life and a 200k 20yr term last August... Here's the fun part, I put away 114.70 per month in a high-interest savings account to cover the renewal (I took the annual price in August). I am at risk of diabetes (been prediabetic for a couple years with a bunch of maternal family being diabetic) so that's what emotionally drove me to say yes to my FAs "recommendation" (he gets paid by commission). Was this a poor choice or should I try to fix what I have before renewing again?

[JHKProduce]

Whole life is ripoff for life. Buy insurance for just that and invest for retirement. Don’t mix.

[jah]

Good information! I'm 52 and my wife is 46 just now we are looking into life insurance, we have no children and we have 2 homes (mortgages). Would you advice Term life insurance or a different product?

[Crowscendo]

do you think it would be good to sign up for a whole life at age 25 knowing after 2 yrs you get a return every month?

[phillipchambers]

You don't borrow. your own money.
You borrow the insurance companies' money.
They loan it to you, and use your equity,
or cash value as collateral.

[peterbusdon]

What these two gentlemen failed to explain or mention was that many people buy whole life insurance as a forced savings. Many people buy term and spend the difference. I always find it amazing that life insurance is perhaps the most understood financial product on the market.

[ejw]

What about the tax sheltering or tax advantage account with Whole Life when you're in retirement? I'm being sold on Whole Life's flexibility with pulling funds from a tax advantaged account that grows at 4-6%. Don't I want that flexibility in retirement I'm being sold. Can someone explain this tax strategy implications of Whole life in retirement in retirement. "Asset allocation" was dropped on me too for the sales dunk.