Why Should I NOT Get A Whole Life Policy?

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[scarpfish]

Buy life insurance for what it is for. To cover your family's expenses up until the point your invested wealth can take care of that for them in case the unthinkable happens. A term policy, or even multiple staggered term policies can do this for much cheaper than a whole life policy can, leaving you plenty of money to make those investments with.

[azteca]

One of the things my husband and I did. Paid off the house AND paid for our funeral arrangements

[davidsensing]

I have a health issue and was told by an insurance salesman that I wouldn't qualify for a term policy and the only policy that I was able to get was a whole life one. I signed up and then the more I got to thinking about it, the more I questioned things. I did some additional research and called a few companies. A great company was able to offer me term. HUGE SAVINGS and helped me contribute more to my Roth retirement account.

[ezbeme]

The problem is that few people invest the difference, most are Davish.

[mikeshaw]

Totally agree with them. Depending on when your house is going to be paid odd and when you will be financially about to retire you may only need a 10-15 year term life policy. After than no policy.

[EmpressMermaid]

I've taught financial math and have said this over and over: If a salesperson is working really hard to talk you into something it's never a good deal. Truly good deals don't need salesmen to push them.

[robcarlos]

I help families with a Financial plan we offer term and help them invest the difference!! . Also we have opportunities for work as well

[jimroscovius]

Whole life is an absolute total rip-off!! And yes, the company DOES keep your money. Why not invest my money myself? Why should I pay 10 times more money for the SAME INSURANCE??

[WolfTau]

Ask the Whole Life Insurance representative what the interest rate you make on your money is capped at and the fees they charge?

[Adinkydude]

The main problem with life insurance is inflation reduces the value of the policies between the decades of when the policies are first bought and when the insurance benefits is paid. My parents first bought a whole life policy in 1962, then more in 1984. The death benefits remained the same as when they first bought the policies, so decades later when they dad died in 2013, the buying power of the death benefits my mother received was reduced to a small fraction from what it was when they first bought the policies.

[RJRussoVids]

It's an investment inside an insurance policy. And when you die they keep the cash value. If you want to invest, do that. And if you want insurance, do that. But do them separately. 🤷

[b-bigb]

It’s a different bucket. Need many different buckets. Richest people in the world have whole life. Tons of it. Suzy is loaded with it.

[b-bigb]

I’ve lost half of my retirement. I’ve gained in my whole life.

[seven]

People that sells whole life insurances are scammers. If your in that business you know full well that your ripping other people off. I'm pretty sure that these sellers don't get whole life on their own end because they know it's a trap for the unfortunate and they don't want to be in their own trap that they are trying to sell.

[rainacherienne]

If I don’t have any dependents, I don’t need life term?

[jonquindiagan]

Thank you for sharing your experience. Keep up the good work!

[EnigmaticEvee]

Has anyone mentioned that not everyone qualifies for term insurance? Depending on your individual situation, whole life may be your only option for life insurance. At least your covered.

[chrisforker]

Whole life presumes that you need life insurance your entire life. The vast majority don’t. Once you’ve retired, paid off your mortgage etc. life insurance is a waste unless it’s the fund a tax liability at death and most people watching DR have zero need for that.

Whole life is a monumental waste of money. It’s a horrible “investment”, which it’s not even a viable way to invest in your future.

[victorhugoalvarez]

Any thoughts on Universal Life Insurance policies ?

[ykciR]

“They are good at convincing me that whole life is good”. That’s call being a salesman lol. A car salesman isn’t going to tell you what’s wrong with the car your about to purchase.