I Was Sold a Universal Life Policy

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[zachjones]

At least he figured this out at 20! This won't impact his life at all in the long run.

[Macntosh]

Whole life insurance is crazy. I have 4 policies since ‘80 and ‘85. I was thinking about taking money out for an European trip. Found out what Dave is saying is true. Not only will my cash value go down, dollar for dollar, which makes sense, but my death benefit will go down even more than the amount I would take out. I asked my agent about it, and got some convoluted explanation why that happened that made no sense.

[mitchellgrand]

I love it when Dave gets fired up lol such passion to do the right thing

[robertbell]

We bought a whole life policy in the mid 90s, $100K. It was $67/mo. Probably a year in we wised up and dumped it. Minimal cash back but for $425/yr we got $750K term life and still have that one. With everything else I'm worth far more dead than alive.

[maddywadsworth]

Hey Dalton, my husband is also a diesel tech. He’s been in the business 12+ years.
22K isn’t great, but I know other techs making $33+ an hour! Maybe apply at some different shops and see what they offer you.

[Allthingstherapy]

I dumped northwestern mutual thanks to Dave Ramsey… and I do thank him for that

[shawnmacwhinnie]

Thank you. I was mixing up universal and whole.

[jasonrodgers]

Back in 1980 when I graduated college, a high school acquaintance looked me up to pitch one of these nonsense whole life policies. I had enough sense to decline. I may have been born at night, but it wasn't LAST night!

[mike]

He’s not a financial advisor, he is a salesmen. That guy screwed you!

[genxx]

Cut your losses. Don’t throw good money after bad. I’m sorry this happened. I narrowly escaped the same situation when I was about 25 years old. It was a $1 million policy, and the premiums were a lot higher. I didn’t want to do it. Fortunately, my grandma told me that 1) I had no one to protect; and 2) term insurance was better.

[hayatmohammed]

I just closed my university life insurance yesterday. I had it for 1 1/2 year. I trusted my friend and she screwed me. My heart is broken.

[carlosmuniz]

It's basically the Herbalife of the finance sector 🤣

[mikesmith-wkvy]

My mom sells insurance and she wanted me to get a whole life policy to help her sales numbers I knew it sucked but did it anyway for my mom . Same deal 1.5 years later I just said nope I’m done with this junk and I got nothing back after canceling

[emilyestelle]

I don't see the issue with life insurance if it is explained correctly and somebody knows what they are buying. I mean, Term is probably the best thing for most younger people, but after a certain age, or if you get a disability or terminal sickness, you are just uninsurable. Term insurance rates for older people get ridiculously unaffordable.

At least with some version of whole life, you build cash value (slowly!) and can never be denied coverage. With whole life, either you die, and it pays out, or you live to 100, and it pays out. Yes, you can borrow against the cash value. (Technically, you don't have to pay it back, but its certainly better if you do.) As Ramsay says, loans aren't taxed. If you take out a policy loan, you pay it back (with interest, just like a bank loan). The only upside to this is you don't need to be approved by a banker. If you need the money NOW, you take it out and avoid having to justify your needs to a banker and stay away from those obscene payday loans. If a policy loan is not paid back, that money comes out of your death benefit.

All that said, selling a whole life policy as an investment is, at best, incorrect. It isn't an investment that builds significant wealth. It can protect wealth and distribute it to those you want to take care of. It is basically saving your own money for your own death. And if you die before it endows the insurance policy kicks in and covers the rest. NOBODY is going to get rich off of a whole life insurance policy, but that does not make them a scam. As far as a lot of agents, I expect many of them don't actually know the finer points of what they are selling or how to explain it properly in layman's terms.

[spencerrochman]

He makes 10.50$ an hour if working full time. Getting that up should be his focus.

[bucknut]

I interviewed for a company that does this fresh out of college and what they say is true. They wanted me to make a list of everyone I knew. They wanted to take advantage of the fact that I was young and had no money. Glad I saw through it and didn’t try to sell my people financial poison.

[takethecurseOFFwashingmachine]

I’m really sick of insurance salespeople calling themselves financial advisors. To a lay person, when you hear financial advisor you think someone who will look at your whole financial picture, and do their best to help you achieve whatever goals you have. When someone is selling insurance products in which they receive a commission, even the best intentioned really will struggle to perform as a true fiduciary. There needs to be more education on the types of financial advisors, what fee only means, and what a fiduciary is.

[marcosrodriguez-vkte]

That’s why I’m a term life insurance agent. I do what’s best for the community not what’s best for my commission check. I wouldn’t be able to sleep at night knowing I’m intentionally screwing hard working people over.

[RichardJanvrinYT]

My friend sells insurance. Talked me into an IUL. I canceled it myself. Paid my stupid tax.

[wesleyify]

😂 when I got out of the army I was looking for employment. I almost fell for a life Insurance company who at the seminar told me to go to sell to my family & friends....I new something didn't feel right and left!