Drawbacks to Whole Life Insurance: Cash Value | IBC Global

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We often talk about the benefits of cash value life insurance, but what are some potential drawbacks you should be aware of? Minimum premiums, cash value returns, and more -- Steve explains what to look out for in this video.

Timestamps:
00:05 Intro to the Drawbacks of High Cash Value Life Insurance
00:52 Time to Capitalize
01:34 Minimum Premium: Must Be Paid Initially
02:25 Cash Value Returns: Fixed Asset %
08:24 Demonstration of Both Ends of the Spectrum (100% Base Premium, Minimum Premium)
12:05 IBC Global Contact Information

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DISCLAIMER:
All advice and/or opinions expressed in our videos are the result of our experience in the insurance and financial industries. Any action taken based on the information expressed in our videos is the sole responsibility of the viewer. All content produced by Steve Parisi and IBC Global, Inc is made for informational purposes only.

#Finance #WholeLife #Finance

[Abatix]

When I first became financially free, I paid off my debt with the help of listening to Dave Ramsey. Concurrently, I also started learning how to invest In the stock market and I have become self employed. I’m actively looking at finances completely different. A year ago today, I would argue that “no whole life insurance is a horrible tool to use because Dave Ramsey said so”, but seeing what I have seen and from personal financial experience, I can see this as being a great tool to use in the future! Thanks for sharing this info!

[dq]

Simple and concise discussion on why structuring a cash value policy properly is so important.

[God_of_Poets]

Yo, at 10:22 when he said “I’m starting to ramble, let’s focus on the drawback” I LOVED how he caught himself and kept it moving in the right direction! Good 💩!!!

[tlar]

Can you do a separate video explaining the whole 100% 50% and 10% base. You explained it like your audience already knows the terms and meaning

[JeffAlpha]

Ive had a whole life policy for 8 years and the cash value is $23, 000 however. I was under the impression I could withdrawal the cash anytime like a savings account... Come to find out... NYL makes you take out a 5% loan on the full cash value and will only let you withdrawal the dividend amount which is $6K. I kind of feel duped because the way I understood it was that I could withdrawal the full amount anytime

[Yonathanfeleket]

Thank you. A lot of valuable insights. Stay blessed

[frankhanson]

I need to go all the way back to the basics. Not getting the 10% .vs 100% premium in the first year.

[hhinvest]

I'll just continue to buy $70K to $85K single family rental properties... better return on my money

[robertparsons]

Other possible drawbacks: 1. Complex contractual issues here. Buyer needs an advocate with them when buying these policies; and 2. How many people have adequate, stable income over decades to fund these policies? People jump from job to job; life happens -- emergencies, health care bills and surprise co-pays, kids, tax increases, etc. Life needs to be basically stable at least until cash value builds up?

[canadaboy]

Thank you Steve, it so nice to see your presentations, so honest and so transparent, I live in Canada and most of the agents that I have talked to offer me a 40-60 split, I have asked them about 10-90 split, and they advised me that it is NOT available in Canada. I Guess all boils down to commissions for some IBC agents here .

[robertstrimpel]

Replying to the comment above about Nelson Nash: how was a policy usually structured in the book? I don’t think it was too far off from 10/90. Also, 20-30 years ago, dividends, etc. were double if not more than double of what they are today. The thing to look for now in my opinion, is what would the cost be of always having term rider added onto a policy say 40-50 years down the road and the load fees

[bradj]

Thank you for this video, very helpful. I currently have a cash value/whole life policy in which I have been paying $200/month for almost two years now. The current cash value is only about $500. This doesn't seem very good to me, is this something I should get out of? I am relatively young/healthy and single, not sure if I need any sort of insurance right now? Would appreciate any input, thanks!

[DeepPatel-bbdu]

Could you please explain why death benefit was reduced starting age 55 in traditional whole life?

[harryseibert]

One has no cash value in the beginning,
Is it because the commission to the salesperson is compensated at that time?

[ghostoferlock]

Thank you for being honest how some parts of a policy function. People should know how any type of policy can grow equity, and how much the policy costs.

[tsciproperties]

Hi Steve, I just got my health and life insurance license! Still new to the industry.

I was wondering about the actual rules and numbers for high cash value whole life policy design.

Isnt the paid up additions limited? if so what is the total amount one can put in per month, per year?
Why don't people just put like 200, 000 death benefit, that way premiums are very low?
Is it as simple as just putting in as much money as you can into paid up additions?

Hoping you could go into more detail on this, thanks.

[AlfonsoJoseS]

What if my cash value doesn’t break-even? They told me to maximize my death benefit. Hoping to hear your thoughts

[rageorge]

Great video and yes the only drawback is the premium piece IMO, time is just something that tags along, but you either make it work in your favor or not.
Thanks 🙏

[JayJay]

What if you're doing it to build generational wealth?

[travisny]

cash value tax free, but don't we have to pay interest on my savings?