Cash Out My Whole Life Policy?

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[jonathanmitchell]

Only time Dave ever said “no, you know what your doing. “

[KiloIndia]

I was literally pulling my hair out thinking No Dave you're not taking into consideration the 200k plus 10k yearly investment would get you more than 400k in just a few years lol

[imveryhungry]

These sound like good people. Its just, its real hard out there in the world.

[kamakazecam]

This is the only time I’ve ever seen a Caller stump Dave. I guess age does come with smarts lol 👍🏽

[stephencullum]

You have to look at the lost opportunity of the money too. Both the 240 K and the cash flow of 10 k a year.

[jameshorton]

These whole life salesmen need to be in prison.

[danielsechrist]

Financial "Experts" always like to conveniently ignore the reality of inflation like they can "just do math". LIke, 30 years ago we could buy houses for what cars now cost, and houses have gone 5x in price. Inflation rates have shown to be logarithmic in nature across all currencies/nations. 400k in 30 years will at best only be equivalent to about 80k or less.

[jwise]

They also don't need life insurance if you have no kids at home and have a good retirement

[darrellyoung]

Be careful talk to your agent / company that issued policy - if you cash in the policy there are tax consequences- you may want to keep policy and withdraw premiums you have paid - and you can invest that money- also see when it will be paid up

[webfreakz]

I'd take it out, saves me 10k per year and invest the rest in the S&P500

[MrSandeeparneja]

Wow, Dave admitted that he was wrong. This is like sun rising from the west.

[estyria]

Just had an insurance guy try to sell us whole life (they've renamed it to may it sound cooler by the way) on our kids. Guaranteed insurability! No underwriting! ... Those were his big selling points as to why we should pay for 20 years for a policy that would grow stupid slowly over time. After watching Dave so much I decided to be politely interested, take the papers to "look them over" and we're going to get small term life policies on the kids when things settle down around here. My dad just passed away, that's the only reason we even sat down and talked to the insurance guy because we're trying to get a mess sorted out. Have a will. If you can do it, have a trust! Then your kids probably won't have to go through probate court, hire a lawyer, and spend countless hours on the phone trying to sort everything out. And have a folder with all your debts, all your bills, all your accounts, and all your investments. Have it organized and keep it updated. Dad did the old "We can worry about that later, " right up until there was no time left. And in the middle of our grief and pain we have to get this all figured out. It sucks.

[sdsudjrtz]

Her only problem was not canceling maybe 6 years ago. She had kids and only way to get life insurance, so she had no choice.

[madchevy]

people hate what they don't understand

[creditczar]

Whole life policies often have a point at which they are paid in full. Dave never addressed that. At least he admitted his huge omission of the earnings on investing . That's a first!

[vincentalcala]

I do not understand why he says the cash value would be pulled from the death benefit. Cash value should equal the death benefit at maturity ie 100 or 121. The insurance company does not keep the cash value, it is a part of the death benefit that goes to the beneficiaries, potentially tax free (depending on estate net worth which she had said she is below the limits, but I would ask a tax expert). Depending on the policy, the equity in themselves should grow faster now than before. Just like a mortgage, the first years mortgage payments goes towards the principle more than the interest or premiums go towards the mortality credits vs the cash value growth. Unlike a mortgage, the Life Insurance policy can be overfunded to be more of an asset.
A properly funded Life Insurance policy should have an increasing death benefit with out increasing the cost.

[michellemorford]

He didn’t consider the other option which is to find out what the life insurance face amount would be if they took a reduced paid up option.
That life policy has been based on a time when interest rates were higher.
Plus, her husband is no longer insurable.
And everyone dies….

[genxx]

Dave, all it takes to figure out when the money will reach $660K is a compound interest calculator, which you can pull up on your computer, or Rachel or a production assistant can do it.

[TheDjcarter]

Yeah problem is he is uninsurable. Humble of Dave to admit he is wrong. I think the reason he didn't jump at it right away which he ALWAYS does to cash out whole life is because it sounds like he is uninsurable so he can't just replace it with some term as most people could. It is kinda close because she figures he only has probably 10 years left but if I was in there situation I would probably cash out the money and go take that trip of a lifetime you have planned in your mind, sure maybe you are blowing $20k but why not, they would have over $1M still, their house is paid off and they are out of debt so not a lot of bills.

[jonathangoldstein]

more simple questions that need to be asked like are there dividends that could be applied to reduce premium ? Does the death benefit increase over time ? What’s the increase in cash value every year . I’m sure when all questions are answered it would make sense to keep .