Is Whole Life Insurance Really A Scam?

Learn if the And Asset Strategy is right for you?

Is Whole Life Insurance Really A Scam?

In this video I am reacting to Rich On Money's video,
The Whole Life Insurance Scam - What Salesmen Won't Tell You.

#BetterWealth #theandasset #wholelifeinsurance #calebguilliams #richonmoney

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BetterWealth
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Caleb Guilliams
ClubHouse: @CalebGuilliams
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[dylanrobertson]

I appreciate how you respected Rich’s views and strong opinions rather than get defensive/reactive. This is very rare in the life insurance space and only creates further divides between the two main camps.
To me, the biggest appeal of whole life is the control and the private contract. Market based investments are not only unsecured, but the risk is completely on your shoulders.
The problem with calling whole life an investment is that it’s completely ignoring the banking function that every single person relies upon.
Good stuff

[lovetrees]

Term is the best option for drones who collect a regular paycheck, have company 401k's, IRA's, company paid health insurance, etc. Term is term, it's a simple product but it has its place as a tool. Its function is simple, die get benefit.
But if you are self-employed or own a small business, you really should investigate WL or IUL.
I can give you an example of a whole life policy saving a family from financial ruin. Exhibit A:
A small family owns a small local deli. They have run it for 25+ years. The entire family runs the deli, husband, wife and kids, nephews and nieces. A handicapped customer comes in (no sign of disability) opens the door to a retail cooler, slips on some water on the floor and goes down, smashing face on the floor. Besides concussion, needs reconstructive surgery. The deli carries $5million business liability coverage with $500k medical. The person sues in court for $6million, wins a judgement. The deli must cover $500k AND remodel the entire store to be completely ADA compliant (at a cost of $160k). The family was already on a tight margin and were barely making all their bills. The court orders them to sell all their assets including 2 cars, the house, the parent's IRAs and her 401k(from a previous employer), even the 529 set up for their grandchild and liquidate all the business assets, kitchen equipment, etc. They still did not have enough to cover the $500k but now they are completely destitute, they have nothing. They live with their oldest daughter in her apartment.
Unknown to the husband and wife, his father (the grandfather) had purchased a Whole Life policy for him when he was a baby. Grandad had been paying the $800/year premium for 50+ years. The mom and pop deli owners actually had $250k cash value of which they could utilize to save them from the streets at an advanced age. All untouchable by the judgement against them.

[juliancaler]

Great video. You spoke on all the important points. Speed of other video was not distracting

[_sports]

If you were trying to promote your company for business you would have forsure turned people away from it solely because you virtually agreed with everything the guy in the video said . But the brutal honesty is Really real which is why I would feel way more comfortable opening a policy with your company than many others . I think the speed was a little fast but not crazy fast we’re I couldn’t understand anything . But the videos should be louder next time . I really couldn’t hear the video well . I need to really read up on this Strategy . I think it’s great perk when considering everything across the board. Question : at the bare bare bare bare bare minimum, how much would be needed to start an overfunded policy and how much would you need to overfunded it to make comfortable and stable gains ?

[michaelhanderson-wealthcre]

Are cannabis smokers considered tobacco or non-tobacco by the insurance company? And what about people who vape?

[cscorona]

What I think is the worst thing people like Rich do is completely gloss over volatility and risk, like it doesn't exist with equities. It's the #1 reason most people don't come anywhere near 7% returns in the market. His approach has worked for him, and that's great. A lot of people cannot live stuffing their entire financial portfolio in equities, and watch 30% (or more) of it evaporate in a short period of time (which is likely to happen half a dozen or so times at LEAST during ones lifetime). Yes, if you never looked at your brokerage account for 40 years, and you never needed that money in those 40 years, you would probably be better off 100% invested in equities. It's just not real life, and not how real human beings work. Oh, and heaven help you if that 30% or more drop happens in your first or second year of retirement and you don't have an adequate volatility buffer.

I think the talk of whether it's an investment or not is kind of silly. It's certainly in the grey zone, especially if you are considering it as the fixed income portion of your long term financial portfolio (as I do). You are kinder to this guy than I would be. I think denigrating an entire profession of people, MANY of which who are doing their best to put together fact based strategies around someones risk profile as being "slimy salesman only looking out for their new vacation home" is really quite pitiful.