Great explanation! Thank you for clarifying the difference between term and whole life. Also, thank you for clarifying that whole life is not an investment, but can be used to support and work together with your investments.
Whole Life insurance isn’t a investment so you shouldn’t use it as such I would advise people to learn how the Rockefellers use it and other wealthy people including banks…..
Thanks for shedding light on the “my term policy is about to expire and now I am uninsurable due to significant health issues.” This is a reality most agents who are proponents of term only do not inform their clients.
Hi guys, I love you videos. I am only month doing whole life with o infinity bank. But I have to say that TERM has living benefits on it, special with National Life, it is not only for terminal cases..
Hey, Wealth Nation! I'm brand new to your channel. Somehow, you came up on my feed. Never heard of you before. Here's a little background on me. Currently, I'm 63, married, and have a $300K term life insurance policy with Northwestern Mutual when I was 56. I had lung blot clots at that time and thought it a good idea to get life insurance to protect my wife and give something to my children. However, for the last two years, our insurance salesman has been contacting me about converting $100K of the $300K to whole life. Now, honestly, I didn't really know the benefits of whole life insurance. Additionally, the monthly premium would increase over $120. Both my wife and I have term life insurance at $300K each. Our monthly premium is about $150.00. I just thought this guy wants to make more money off of us. However, this video and another video of yours have sparked interest in whole life insurance. Is there a less expensive whole life insurance policy that helps us have a better financial life? It's still a bit confusing to me. Dividends, cash value, policy loans? Help? Thanks.
You almost made a convincing argument that there could be a case for whole life for someone. You do explain some of these concepts very clear, better than most other salesmen I've heard pitches from and I appreciate your knowledge... however everything you get with whole life you can do better with other products, so why bother packaging those features into a inferior policy? Once you start talking about "OPM" then yeah I guess WLI allows you to leverage more of your equity, but you'd be better off and have more fun just learning to become a professional poker player.
because if you invest using your own money, you pay capital gains taxes on the returns. If you invest using OPM, you don't pay capital gains taxes on your returns. Taxes are the #1 killer of wealth.
@@emhchannel2842, you are overpaying to your insurance company by as much or more as you would pay capital gains tax (assuming all your tax advantaged accounts are maxed)... I would rather that money go into tax revenues and be used for public spending on infrastructure and social programs that benfit the community as a whole rather than into the pocket of a bunch of overpaid execs with the dividends going to foreign investors.
They're good salesmen. However, I realized I couldn't trust this video once I saw the description, which included a link to an insurance policy. They're just trying to make sales
Got to sit with a Primerica Rep saved my Life and taught me how to look forward to financially freedom with their 35yr term policy and investments as well.
@@yehmessenger Primerica, like any company, has its share of opinions and experiences. Some people who have worked there may not have positive things to say. During interviews, they often emphasize the allure of high commissions tied to selling products that may or may not be the best fit for clients, all in pursuit of profits. As someone who hasn’t been a Primerica customer but possesses knowledge about finances, investing, and risk management, you raise valid points. Term insurance serves as a risk management tool. Much like auto insurance, it’s designed to provide protection when needed. You hope you won’t have to use it, but having that safety net can be crucial. Just as auto insurance companies retain your premiums even if you don’t have an accident, term insurance premiums contribute to the overall risk pool. It’s a balancing act between financial security and the company’s profitability.
Hello friends! Nice video! Just a side note… term insurance does have living benefits… depending on the company terminal, chronic, crytical illness and Crytical injury with NLG … just a quick side note. Thanks for your videos. Hi from Utah!
To anyone watching this video thinking they need whole life insurance, DONT DO IT! That is a predatory policy by insurance salesman who just want to get a commission off of you. Go term life and invest the max you can into your investment accounts. PERMANENT OR “WHOLE LIFE” is a scam and people lose thousand each year from it!
This video was an awesome explanation of the sole topic at hand. I personally believe all insurance sold pays a commission and the investment account also pay a commision. Purchasing one or the other take common sense to what works with your individual budget. Do your due diligence in finding an ethical and morally sound agent that will cater to Your needs. When you find them refer them!!! Out of your getting, get an Understanding!
Hello - I am a long time Life Insurance agent 🧑💼 that has written over 500 Life Policies and delivered Death ☠️ Claim checks on Universal Life Policies- Whole Life - and only one large term policy-never has the beneficiary said that it was too much
So you do know you’re throwing money away on a term too right? Unless you got one with a ROP. And how much do you think investment companies make off of you?
This needs to be taught in HS! Thanks for the the info. I have a rep. Coming out to go over my policy. Im not sure if I have the best policy for me. How does it work if I decide to go through a different company?
THIS IS THE COMMENT I WAS LOOKING FOR… He purposely “Glazed” over that tidbit. Any money you take from your so called ‘Whole Life Insurance Savings’, you have to pay that money back or it’s deducted from the DEATH BENEFIT!
Good presentation. However, I didn't hear anything about the tax benefit of going with whole life over term. If I choose term and invest that $2,800 savings personally, I'm paying capital gains on the returns. If instead I invest that same $2,800 in a whole-life policy using other people's money, I don't pay taxes on the returns.
In the example of a person with a terminal illness (I'm healthy, just asking), would the convertible insurance policy still work or would it be denied?
@15:06 I don't understand how to get that going. I see it's important but I feel like the explanation kind of fell off. Could you please give some more information about how to bank will give you insurance like that? There's something I'm missing and I've rewatched that portion more then once. There defiantly missing info, meaning, why would the bank pay the premium? and what account would they be looking at to make that kind of decision and where or how to go about setting something like that up. What or how much money is required and in what kind of account or investment in order to qualify for this? Thanks in advance and great video!
Yea it was definitely rushed but I think that's specific to people with considerable wealth/net worth. Ala Musk, Zuckerberg, Bezos because the banks just know they'll get that money back regardless. The wealthy person now takes the cash that they would've had to pay for a premium and invests it elsewhere. The collateral for the banks is the cash value over the agreement of the term, say 15yrs. I don't know if I'm correct here, I'm really not sure. But I hope it helps you, open to corrections and better clarity. If you find out, please share as well. Cheers.
Only after you’ve paid tens of thousands of dollars of the commissions of the agents + built up your cash value that the 2-5% IRR will then pay for the premium. Totally not worth it
I recommend you guys to learn more from a top mutual company about Whole Life. You guys only know the basic of a WL policy. ¿Do you guys know what is a 10-90?
Only after you’ve paid tens of thousands of dollars of the commissions of the agents + built up your cash value that the 2-5% IRR will then pay for the premium. Totally not worth it
I also purchased a couple whole life policies from Northwestern Mutual before discovering the infinite banking concept. The policies take forever to build up cash value and most of the premiums go towards the cost of insurance. If I didn’t lose money for backing out of my insurance policies, I would fire my agent yesterday. The only fortunate part of all this is the policies will get more efficient the older they get which I will use to leverage the cash value. Expensive lesson but I will stay the course. I also just added a 10 pay policy from mass mutual that will create more cash value than all my northwestern policies combined in year 1.
I was actually part of their internship program and not once did they teach about the infinite banking concept. They pitch whole life as become your own bank, yet they sell these horribly structured policies with maximum death benefit to collect massive commissions. To add one last thing, Northwestern is also a direct recognition company which tells you they really don’t like the infinite banking concept.
Banks themselves don't hold life insurance in the traditional sense, where individuals take out policies to protect their loved ones. However, a specific type of insurance called bank-owned life insurance (BOLI) exists. Here's how BOLI works: Banks purchase BOLI policies on specific individuals, typically key employees or executives. The bank becomes the owner and beneficiary of the policy. In case of the insured's death, the bank receives the death benefit. Banks use BOLI for various purposes, including: Funding employee benefits: BOLI offers tax advantages, allowing banks to accumulate funds for future employee benefits in a tax-efficient manner. Key person insurance: BOLI helps mitigate financial losses arising from the death of a critical employee. Loan collateral: In some cases, BOLI policies can be used as collateral for loans. It's important to remember that BOLI is not a typical life insurance product offered to individuals by banks. It's a specific financial tool used by banks for their own purposes.
Yes, in the case of a whole life insurance policy, when the policyholder passes away, the beneficiaries will typically receive both the death benefit and any accumulated cash value. Here's how it generally works: 1. *Death Benefit: - The primary purpose of a life insurance policy is to provide a death benefit to the beneficiaries upon the death of the insured. - The death benefit is a predetermined amount specified in the policy and is generally paid out to the beneficiaries income tax-free. 2. *Cash Value: - Whole life insurance policies have a cash value component that grows over time. This cash value is a savings or investment component within the policy. - If the policyholder passes away, the beneficiaries receive not only the death benefit but also the cash value that has accumulated within the policy. 3. *Combined Payout: - The death benefit and the cash value are typically combined into a single payout to the beneficiaries. - The beneficiaries receive the total amount, which includes both the face value of the policy (death benefit) and any cash value. 4. *Use of Cash Value During Lifetime: - While the policyholder is alive, they may have the option to access the cash value through policy loans or withdrawals, depending on the terms of the policy. - Any outstanding loans, along with accrued interest, may be subtracted from the death benefit when paid out to beneficiaries. It's important for policyholders to review and understand the terms and conditions of their specific whole life insurance policy, as features and options can vary among policies and insurance providers. Additionally, the death benefit and cash value are influenced by factors such as premium payments, policy riders, and investment performance. Before making decisions about accessing cash value or making changes to the policy, individuals should consult with their insurance company or agent to ensure a clear understanding of the potential impact on the policy and its benefits.
You should contact the insurance and ask them this question. Videos I been watching say no to this question. Beneficiary only gets the death benefit. So please confirm with your policy.
The cash value and the death benefit is the same. Cash value is prepayment of death benefit. Funds you can access while you are living. If you pass away you will get the death benefit. If you have an outstanding loan you will get the death benefit minus the loan you've accessed. This is why it's important to strategically access these funds to make more money.
@@WealthNation Cash Value and Death Benefit are not the same, the death benefit is what your beneficiary is guaranteed to receive by the insurance company when when you pass away, depending on your policy. (ie: 500k). The cash value is the savings component and can be accessed and borrowed against while you’re still alive. But all the money you grew in Cash Value and savings goes back to the insurance company after death. So if you had 200k in cash value, yes your beneficiary still gets 500k according to the death benefit in the policy, but the 200k of cash value goes back to the insurance company. Which is exactly why nobody should ever get “Whole Life” insurance.
The dollars & cent do not add up in reality. Stated to use the cash value to invest to pay your premium so you don't have too. You still pay interest on that loan so when added together with your premium is paying a rather large ROI to do so (not including the repayment of the actual loan). Also, AGE and HEALTH are HUGE factors in premium prices and will price most folks in mid life out. Those that use it teach it to their children. Government Schools will not do this or anything else that is not in the government's interest. The only way for change is to use your vote, sadly most people will not vote at the local level (where change must start).
Cash value life insurance is a savings alternative, not an investment. If your goal is to try and get the highest ROI and are comfortable with the risk of losing that money then the market makes sense. You if you want a place to save money where it will grow at a modest, yet predictable rate without risk of losing it then whole life is a viable option. Saving and investing are two different things with different purposes. What works for one person may not be ideal for someone else.
David Ramsey said that whole life is bad because the money u borrow against the policy, you have to pay back interest on your money . Also that that money earned will not be paid to the policy holder beneficiaries when they die. So what is the upside again?
What they fail to tell you with whole life insurance is that your beneficiaries don't receive the face amount and the cash value. Upon the death of the insured the whole life company keeps the cash values
and what n one talks about is the $500 premium you are paying is AFTER Tax DOLLARS". so you have to earn $640 to pay a $500 premium. It is such a bad place to put your money you may as well flush it down the toilet. They never talk about the premium that goes purely to fees. It criminal they sell this garbage.
As They Should…let me give you a bit of life insurance advice. LIFE INSURANCE COMPANIES ARE NOT YOUR FRIENDS! They are in the business of making MONEY 💰‼️ People think that these Life Insurance companies are the “Catholic Charities” or UNICEF😂… Your job as a potential customer is to make sure that on your PAPERWORK that all of your “I” are dotted and your “T’s” are crossed. Don’t miss a payment and live as healthy as you possibly can.
As long as you don’t have any health issues…but here’s a rule of thumb, Term is for the young but the older you get and the longer you wait to purchase life insurance, a “term” or whole life policy is gonna cost you BIG 💰💰💰
The thing is, with whole life you have a set premium for the duration of your life meaning you pay what you pay forever and never have to worry about increases! With term, as you age the premium goes up every couple of years… not 15 years! Also the benefits of borrowing/cash value or getting money from your policy is a benefit for you under whole life. With term you’re not getting any benefits! You’re stating it’s a scam.. there’s no scam! It’s either you want it or you don’t. They’re not forcing you or tricking you. Lots of people falter on paying for insurance because they forget to pay it or cannot afford to pay it… so advising people to go with term insurance where their premiums will raise over time causing them to pay MORE as they age is crazy! Also advising people who simply are not knowledgeable in investing is not smart! There is no assurance in the stock market… they crash all the time! So advising investment in stocks over whole life insurance is wild! I’m sorry this makes zero sense to me! 🙄🤦🏽♀️
Whole Life is about 10 times more expensive. Using his example, he pays around $4000/yr for $625,000 in Whole Life insurance. If you get a $625,000 Term Life policy, you are looking at around $400/yr. Take the $3600/yr difference and put it into VTSAX or another index fund. No guarantee in the performance of an index fund, but you can expect an average of 8-10%, based on history. If you die within the term period, your family will get your $625,000 life insurance AND the money from your index fund. If you die with a Whole Life policy, your family will only get the death benefit and when cash value disappears! The goal is not to be “insured” for life. The goal is to eventually be self-insured, meaning that if you die, you have enough money in investments to take care of them.
So what if i dont like the risks involved with stock market investments? If there is an actual cash value amount from whole life insurance that is worth it?
Please tell me why you wouldn't get a 30-yr term and invest the difference? If you're not disciplined at all then yes a whole-life policy might be for you. 30 years is enough time to self insure yourself or at least not need as much insurance in 30 years. Come on guys. You're never using OPM when you have investments within an insurance policy. You just overpaid your premiums or that money is allocated for the investment part of the policy. This is not a matching 401k program where the insurance company matches your investment. There is no OPM.
Why do you need more insurance to cover your increased income? There is a strategy that is "needs based" insurance. if you have no debt and your dividends on your investment covers your annual expenses in such a way that your principle is not touched, explain why I or my loved ones would need insurance? They wouldn't. Great presentation; however, I vehemently disagree with 97% of what is presented here.
So is the cash value of a whole life insurance plan a part of the policy amount. (Example if have a $20000 dollar policy and cash value of 5000 and decide to use that 5000, will my policy now be worth 15000?)
If you don't pay it back. But depends on what company you're with. You will still make interest and dividends with a mutual company as long as you pay the premium so those values will grow over time.
"Whole Life insurance is a very bad investment" I vote for that; On top of this, I'd say the WL insurance is the best permanent life product that it helps you to build yourself a life time tax-free asset !
Great video. But how can you invest the money of the whole life if you don’t have access to it . Because it’s not a bank that you can just ask for that money ?
Whole life is not an investment. For the record. It’s a life insurance policy that has a “perk” of having access to cash. You DO have access to cash as soon as you pay your premium, as long as the policy is designed for max cash value. If it is not designed as such there is a possibility of having to wait a few years until there’s enough cash built in the policy for you to access.
Why pay for more then 1 insurance when its only for your family to replace your income God forbid something was to happen to you. $300+ a month to possibly get some money back from your insurance is a rip off. Investing the difference and getting term insurance makes more sense. This is why people get riped off getting the wrong information.
The cash value and death benefit is one in the same. Cash value is the prepayment of death benefits. So when the insurer passed the death benefit is paid out minus any outstanding loans of the cash value. Here is a video we did talking about cash value @ 0:27 in. ruclips.net/video/H6XfQqZ84TA/видео.htmlsi=CMlkyExXjYe5u79x
Videos like this make me sad. I have insurance license in multiple state & investment licenses. NEVER MIX the two! CV grows at 2-4% ... you have to PAY BACK CV money you withdrew at 7-9% interest! Term has living benefits! If you put too much money in your CV, and it doesn't match death benefit, the death benefit will increase to match CV. If your premiums are $4000 a year and you pay more than that your WL policy will turn into a MEC!! Etc etc. Do better please!!!
@brimi003 I wouldnt invest in WL policies for the purposes of using it as a loan, and I wouldn't use it as an investment vehicle. There are many sources you can research.
96 percent for term never pays out. - Why even bother throwing money away for the entire term? After the term it will be hard to find coverage in old age. - Tax benefits are awesome for whole life for borrowing to pay debt etc.
Modern whole life is a scam. My wife and I are moving for her career. I get to bring my job with me. Before starting with the move we each took out a $1 million dollar 10 year term life policy. They cost less than $100/month for both. If something were to happen to one of us in close proximity to the move it would be really bad. The idea is a 7% return on $1 million plus our employer offered life insurance would completely offset one of our incomes. Our income is doubling and cost of living should be going down enough that we have a goal of getting to $1 million invested in the next 10 years. Then there will be no need for a term life policy after that. Mitigate the risk. If we don't meet our goal we'll have to figure out if we still need life insurance.
Great explanation! In real life, most people that buy Term end up with no life insurance and a lot of regrets. They usually invest in the stock market which has only returned about 4% for investors over the past 30 years. They usually spend their stock market-based accounts... They usually leave their family only $10,000 when they die. Whole Life holders have a lot of tax-free cash value and often leave behind hundreds of thousands of dollars to their survivors and life insurance and health protection that grows with them. If they work with a solid Mutual company they even have a nice supplement to their retirement income that is not market based. Nice job!
I respectfully disagree with the comment mentioned above regarding the video was all over the place. Unfortunately, I don’t have a financial background or had parental guidance in the matter. However, I understood the synopsis and differences explained in the video between Term and Whole Life insurance. I currently have a term life insurance with Northwest Mutual because what I do understand is that death and taxes are guaranteed.
@@SublimeThinker and not only that but if you have borrowed against your cash value and haven't repaid it before your death then they deduct that amount... FROM THE DEATH BENEFIT PAYOUT! leaving your loved ones with less than you were supposed to leave them with (thus requiring you to pay for a much larger policy if you want to use it this way)
you will continue to pay interest on the loan to the insurance company and when you die they will deduct the amount you owe out of the death benefit. i.e. borrowing from your policy presents a risk to the whole reason you bought insurance in the first place: to provide for your beneficiaries.
@@monicaanderson3144, there’s many ways to take money out from your cash value without paying interest. I could guide you how to do so. ¿Which company did you use for your policy?
“ get a term life insurance policy and put the difference as investment in the stock market all this instead of getting a whole life insurance policy “ ?! This is the worse advice Any whole life insurance policy is better than term life insurance
@@youngdemon8110 My younger years my head wasn’t thinking rite! Didn’t have the money to put into ins.,Wish I did!Any advise on where to start looking?
✍🏾 Are you ready to Start a Policy? Complete our new client application.
bit.ly/WN-New-Client
Listen to this video several times. Thanks for cleaning things up
Great explanation! Thank you for clarifying the difference between term and whole life. Also, thank you for clarifying that whole life is not an investment, but can be used to support and work together with your investments.
Says the insurance salesman.
Whole Life insurance isn’t a investment so you shouldn’t use it as such I would advise people to learn how the Rockefellers use it and other wealthy people including banks…..
How do they use it?
Thanks for shedding light on the “my term policy is about to expire and now I am uninsurable due to significant health issues.” This is a reality most agents who are proponents of term only do not inform their clients.
Hi guys, I love you videos. I am only month doing whole life with o infinity bank. But I have to say that TERM has living benefits on it, special with National Life, it is not only for terminal cases..
Great video. Good information. In the state that I live in , it's not really legal to call life insurance an investment.
Very helpful and informative. I love the way he started giving information, and you come in and make it all come together
Hey, Wealth Nation!
I'm brand new to your channel. Somehow, you came up on my feed.
Never heard of you before.
Here's a little background on me.
Currently, I'm 63, married, and have a $300K term life insurance policy with Northwestern Mutual when I was 56. I had lung blot clots at that time and thought it a good idea to get life insurance to protect my wife and give something to my children. However, for the last two years, our insurance salesman has been contacting me about converting $100K of the $300K to whole life. Now, honestly, I didn't really know the benefits of whole life insurance. Additionally, the monthly premium would increase over $120. Both my wife and I have term life insurance at $300K each. Our monthly premium is about $150.00. I just thought this guy wants to make more money off of us. However, this video and another video of yours have sparked interest in whole life insurance. Is there a less expensive whole life insurance policy that helps us have a better financial life? It's still a bit confusing to me. Dividends, cash value, policy loans? Help? Thanks.
You almost made a convincing argument that there could be a case for whole life for someone. You do explain some of these concepts very clear, better than most other salesmen I've heard pitches from and I appreciate your knowledge... however everything you get with whole life you can do better with other products, so why bother packaging those features into a inferior policy?
Once you start talking about "OPM" then yeah I guess WLI allows you to leverage more of your equity, but you'd be better off and have more fun just learning to become a professional poker player.
because if you invest using your own money, you pay capital gains taxes on the returns. If you invest using OPM, you don't pay capital gains taxes on your returns. Taxes are the #1 killer of wealth.
@@emhchannel2842, you are overpaying to your insurance company by as much or more as you would pay capital gains tax (assuming all your tax advantaged accounts are maxed)... I would rather that money go into tax revenues and be used for public spending on infrastructure and social programs that benfit the community as a whole rather than into the pocket of a bunch of overpaid execs with the dividends going to foreign investors.
They're good salesmen. However, I realized I couldn't trust this video once I saw the description, which included a link to an insurance policy. They're just trying to make sales
@@john8890EXACTLY…and they still left out a bunch of pertinent information about Term and Whole Life policies.
Thank you for this detailed explanation.
Our pleasure 🙌🏾
Hey guys, just discovered this channel. Love the way your presentation and the way you break down the info. Thank you for the knowledge share!!
Got to sit with a Primerica Rep saved my Life and taught me how to look forward to financially freedom with their 35yr term policy and investments as well.
How is that going for you? I'm surprised they didn't try to whole or universal life insurance.
Me too. Primerica is a great company
Is very expensive term insurance and it doesn’t include return of premium. If you live past the term period they get to KEEP all the $$$$$
@@yehmessenger Primerica, like any company, has its share of opinions and experiences. Some people who have worked there may not have positive things to say. During interviews, they often emphasize the allure of high commissions tied to selling products that may or may not be the best fit for clients, all in pursuit of profits. As someone who hasn’t been a Primerica customer but possesses knowledge about finances, investing, and risk management, you raise valid points.
Term insurance serves as a risk management tool. Much like auto insurance, it’s designed to provide protection when needed. You hope you won’t have to use it, but having that safety net can be crucial. Just as auto insurance companies retain your premiums even if you don’t have an accident, term insurance premiums contribute to the overall risk pool. It’s a balancing act between financial security and the company’s profitability.
@yehmessenger if you undestood their policy benefits you will see the value of that policy. Need to do some reasearch buddy.
This was helpful thank you
Great video. Thank you!
Thanks for explaining great video
Hello friends! Nice video! Just a side note… term insurance does have living benefits… depending on the company terminal, chronic, crytical illness and Crytical injury with NLG … just a quick side note. Thanks for your videos. Hi from Utah!
What is NLG
@@americatruecrime national life group
@@jparekh18 thank you
To anyone watching this video thinking they need whole life insurance, DONT DO IT! That is a predatory policy by insurance salesman who just want to get a commission off of you. Go term life and invest the max you can into your investment accounts. PERMANENT OR “WHOLE LIFE” is a scam and people lose thousand each year from it!
This video was an awesome explanation of the sole topic at hand.
I personally believe all insurance sold pays a commission and the investment account also pay a commision. Purchasing one or the other take common sense to what works with your individual budget. Do your due diligence in finding an ethical and morally sound agent that will cater to Your needs.
When you find them refer them!!!
Out of your getting, get an Understanding!
Hello - I am a long time Life Insurance agent 🧑💼 that has written over 500 Life Policies and delivered Death ☠️ Claim checks on Universal Life Policies- Whole Life - and only one large term policy-never has the beneficiary said that it was too much
So you do know you’re throwing money away on a term too right? Unless you got one with a ROP. And how much do you think investment companies make off of you?
I think you got it backwards. Term is a waste of money. 96% never pay out. You're just giving your money away!
This needs to be taught in HS! Thanks for the the info. I have a rep. Coming out to go over my policy. Im not sure if I have the best policy for me. How does it work if I decide to go through a different company?
Never do whole life
This does not need to be taught in hs. Whole life is a scam
Very interesting presentation,I am really interested in applying one of the life insurance you guy just said
borrowing Cash value from WL insurance needs to be paid back, correct
Yes (plus interest) or it gets deducted from the death benefit. Either way, you're out the money.
THIS IS THE COMMENT I WAS LOOKING FOR…
He purposely “Glazed” over that tidbit. Any money you take from your so called ‘Whole Life Insurance Savings’, you have to pay that money back or it’s deducted from the DEATH BENEFIT!
Good presentation. However, I didn't hear anything about the tax benefit of going with whole life over term. If I choose term and invest that $2,800 savings personally, I'm paying capital gains on the returns. If instead I invest that same $2,800 in a whole-life policy using other people's money, I don't pay taxes on the returns.
Thanks for Info. Wish you had been around when I was young !
In the example of a person with a terminal illness (I'm healthy, just asking), would the convertible insurance policy still work or would it be denied?
@15:06 I don't understand how to get that going. I see it's important but I feel like the explanation kind of fell off. Could you please give some more information about how to bank will give you insurance like that? There's something I'm missing and I've rewatched that portion more then once. There defiantly missing info, meaning, why would the bank pay the premium? and what account would they be looking at to make that kind of decision and where or how to go about setting something like that up. What or how much money is required and in what kind of account or investment in order to qualify for this? Thanks in advance and great video!
Yea it was definitely rushed but I think that's specific to people with considerable wealth/net worth. Ala Musk, Zuckerberg, Bezos because the banks just know they'll get that money back regardless.
The wealthy person now takes the cash that they would've had to pay for a premium and invests it elsewhere. The collateral for the banks is the cash value over the agreement of the term, say 15yrs.
I don't know if I'm correct here, I'm really not sure. But I hope it helps you, open to corrections and better clarity. If you find out, please share as well. Cheers.
Only after you’ve paid tens of thousands of dollars of the commissions of the agents + built up your cash value that the 2-5% IRR will then pay for the premium. Totally not worth it
@@codygustafson4665 If that's the case then I'd get why
Ok,so there is universal, permanent/whole life insurance. That is cool. I will check you guys out.. You guys explained it very well.
I recommend you guys to learn more from a top mutual company about Whole Life. You guys only know the basic of a WL policy.
¿Do you guys know what is a 10-90?
How does the bank finance the premiums? What kind of net worth would qualify?
Only after you’ve paid tens of thousands of dollars of the commissions of the agents + built up your cash value that the 2-5% IRR will then pay for the premium. Totally not worth it
What are the formalities when you take cash out to invest? Are there penalties, fees, do you have to pay that back?
My policy is $180,000 for $4500 a year with Northwestern Mutual...I did something wrong 😢
Northwestern Mutual is the worst. Their financial advisors make most of their commissions on the insurance plans.
I also purchased a couple whole life policies from Northwestern Mutual before discovering the infinite banking concept. The policies take forever to build up cash value and most of the premiums go towards the cost of insurance. If I didn’t lose money for backing out of my insurance policies, I would fire my agent yesterday. The only fortunate part of all this is the policies will get more efficient the older they get which I will use to leverage the cash value. Expensive lesson but I will stay the course. I also just added a 10 pay policy from mass mutual that will create more cash value than all my northwestern policies combined in year 1.
I was actually part of their internship program and not once did they teach about the infinite banking concept. They pitch whole life as become your own bank, yet they sell these horribly structured policies with maximum death benefit to collect massive commissions. To add one last thing, Northwestern is also a direct recognition company which tells you they really don’t like the infinite banking concept.
@@evazquez595 You finally discovered that whole life is a scam. What a shame.
@@Dwilliams33what about state farm ?
Why not just start off with whole life if you plan on continuing your term insurance with the “convertible” option?
what would you recommend for people in their 50's plus?
Whole life
Speak to a financial advisor. It’s free. Don’t ask the internet because WE DON’T KNOW YOUR SITUATION!
@@RedAvery1100% agree on this😍
What company your recommend for term and for whole life and do all insurance policies age out at 100 yrs old?
You just had another video of how whole life insurance is a great investment??
You didn’t mention the interest you are charged for borrowing against your cash value
Since a lot of these banks have life insurance where do they get or hold there Insurance?
Banks themselves don't hold life insurance in the traditional sense, where individuals take out policies to protect their loved ones. However, a specific type of insurance called bank-owned life insurance (BOLI) exists.
Here's how BOLI works:
Banks purchase BOLI policies on specific individuals, typically key employees or executives.
The bank becomes the owner and beneficiary of the policy.
In case of the insured's death, the bank receives the death benefit.
Banks use BOLI for various purposes, including:
Funding employee benefits: BOLI offers tax advantages, allowing banks to accumulate funds for future employee benefits in a tax-efficient manner.
Key person insurance: BOLI helps mitigate financial losses arising from the death of a critical employee.
Loan collateral: In some cases, BOLI policies can be used as collateral for loans.
It's important to remember that BOLI is not a typical life insurance product offered to individuals by banks. It's a specific financial tool used by banks for their own purposes.
If I have whole life and I have money in cash value . And if I pass away will my beneficiaries get the death benefit and my investments?
Yes, in the case of a whole life insurance policy, when the policyholder passes away, the beneficiaries will typically receive both the death benefit and any accumulated cash value. Here's how it generally works:
1. *Death Benefit:
- The primary purpose of a life insurance policy is to provide a death benefit to the beneficiaries upon the death of the insured.
- The death benefit is a predetermined amount specified in the policy and is generally paid out to the beneficiaries income tax-free.
2. *Cash Value:
- Whole life insurance policies have a cash value component that grows over time. This cash value is a savings or investment component within the policy.
- If the policyholder passes away, the beneficiaries receive not only the death benefit but also the cash value that has accumulated within the policy.
3. *Combined Payout:
- The death benefit and the cash value are typically combined into a single payout to the beneficiaries.
- The beneficiaries receive the total amount, which includes both the face value of the policy (death benefit) and any cash value.
4. *Use of Cash Value During Lifetime:
- While the policyholder is alive, they may have the option to access the cash value through policy loans or withdrawals, depending on the terms of the policy.
- Any outstanding loans, along with accrued interest, may be subtracted from the death benefit when paid out to beneficiaries.
It's important for policyholders to review and understand the terms and conditions of their specific whole life insurance policy, as features and options can vary among policies and insurance providers. Additionally, the death benefit and cash value are influenced by factors such as premium payments, policy riders, and investment performance.
Before making decisions about accessing cash value or making changes to the policy, individuals should consult with their insurance company or agent to ensure a clear understanding of the potential impact on the policy and its benefits.
No
You should contact the insurance and ask them this question. Videos I been watching say no to this question. Beneficiary only gets the death benefit. So please confirm with your policy.
The cash value and the death benefit is the same. Cash value is prepayment of death benefit. Funds you can access while you are living. If you pass away you will get the death benefit. If you have an outstanding loan you will get the death benefit minus the loan you've accessed. This is why it's important to strategically access these funds to make more money.
@@WealthNation Cash Value and Death Benefit are not the same, the death benefit is what your beneficiary is guaranteed to receive by the insurance company when when you pass away, depending on your policy.
(ie: 500k).
The cash value is the savings component and can be accessed and borrowed against while you’re still alive. But all the money you grew in Cash Value and savings goes back to the insurance company after death. So if you had 200k in cash value, yes your beneficiary still gets 500k according to the death benefit in the policy, but the 200k of cash value goes back to the insurance company. Which is exactly why nobody should ever get “Whole Life” insurance.
The dollars & cent do not add up in reality. Stated to use the cash value to invest to pay your premium so you don't have too. You still pay interest on that loan so when added together with your premium is paying a rather large ROI to do so (not including the repayment of the actual loan). Also, AGE and HEALTH are HUGE factors in premium prices and will price most folks in mid life out. Those that use it teach it to their children. Government Schools will not do this or anything else that is not in the government's interest. The only way for change is to use your vote, sadly most people will not vote at the local level (where change must start).
Call me surprised.
Yes, whole life is a terrible investment. So is Index life, variable life, and any type of cash value life insurance.
you can also get whole life policies that allow you to add more money...rather than getting a separate term or another policy.
It’s called additional purchase benefit
but why would you want to, you'd have way better ROI investing that in the market than putting it in a terrible insurance policy.
Cash value life insurance is a savings alternative, not an investment. If your goal is to try and get the highest ROI and are comfortable with the risk of losing that money then the market makes sense. You if you want a place to save money where it will grow at a modest, yet predictable rate without risk of losing it then whole life is a viable option.
Saving and investing are two different things with different purposes. What works for one person may not be ideal for someone else.
Nice words: Dead is guaranteed 😅. So truth🎉. Win the prizes die early 😂.
David Ramsey said that whole life is bad because the money u borrow against the policy, you have to pay back interest on your money . Also that that money earned will not be paid to the policy holder beneficiaries when they die. So what is the upside again?
There are permanent policies where the cash value can add to the death benefit or even be used to pay the premiums.
What they fail to tell you with whole life insurance is that your beneficiaries don't receive the face amount and the cash value. Upon the death of the insured the whole life company keeps the cash values
and what n one talks about is the $500 premium you are paying is AFTER Tax DOLLARS". so you have to earn $640 to pay a $500 premium. It is such a bad place to put your money you may as well flush it down the toilet. They never talk about the premium that goes purely to fees. It criminal they sell this garbage.
so what Company do we buy whole life insurance.? It seems like all are just looking for your monthly payment
As They Should…let me give you a bit of life insurance advice. LIFE INSURANCE COMPANIES ARE NOT YOUR FRIENDS!
They are in the business of making MONEY 💰‼️
People think that these Life Insurance companies are the “Catholic Charities” or UNICEF😂…
Your job as a potential customer is to make sure that on your PAPERWORK that all of your “I” are dotted and your “T’s” are crossed. Don’t miss a payment and live as healthy as you possibly can.
Why not do a VUL and call it a day? Invest in your job with a 40k-a custom whole-life ten-year pay. is great for someone young.
Thank you.
So basically, insurance you’re parking your money…but to invest you got to MAKE A MOVE with the funds..right?
What happens to the cash value in a whole life policy if you die before you take it out? Also why would I have to borrow my own money?
It goes to the insurance company.
This is why its better have your life insurance and investments separate.
So term is better for older people?
As long as you don’t have any health issues…but here’s a rule of thumb, Term is for the young but the older you get and the longer you wait to purchase life insurance, a “term” or whole life policy is gonna cost you BIG 💰💰💰
The thing is, with whole life you have a set premium for the duration of your life meaning you pay what you pay forever and never have to worry about increases! With term, as you age the premium goes up every couple of years… not 15 years! Also the benefits of borrowing/cash value or getting money from your policy is a benefit for you under whole life. With term you’re not getting any benefits! You’re stating it’s a scam.. there’s no scam! It’s either you want it or you don’t. They’re not forcing you or tricking you. Lots of people falter on paying for insurance because they forget to pay it or cannot afford to pay it… so advising people to go with term insurance where their premiums will raise over time causing them to pay MORE as they age is crazy! Also advising people who simply are not knowledgeable in investing is not smart! There is no assurance in the stock market… they crash all the time! So advising investment in stocks over whole life insurance is wild! I’m sorry this makes zero sense to me! 🙄🤦🏽♀️
Whole Life is about 10 times more expensive. Using his example, he pays around $4000/yr for $625,000 in Whole Life insurance. If you get a $625,000 Term Life policy, you are looking at around $400/yr.
Take the $3600/yr difference and put it into VTSAX or another index fund. No guarantee in the performance of an index fund, but you can expect an average of 8-10%, based on history.
If you die within the term period, your family will get your $625,000 life insurance AND the money from your index fund. If you die with a Whole Life policy, your family will only get the death benefit and when cash value disappears!
The goal is not to be “insured” for life. The goal is to eventually be self-insured, meaning that if you die, you have enough money in investments to take care of them.
To me neither😅
He mentioned cost of insurance going up for term. The same applies to whole life.
I opened a whole life policy in 1998. My kids are grown and gone. do I still need any insurance or just burial insurance.
do you care about leaving a legacy?
So what if i dont like the risks involved with stock market investments? If there is an actual cash value amount from whole life insurance that is worth it?
Index Universal life is what you’re looking for
@@AcEyDeViLLeworst idea ever
Just put in bonds
But when you borrowed from it they raised your premium even higher which I think is a rip off
Ok so i have 42k to start something for me and my fiance. Im very interested in learning more about a whole life.
Please tell me why you wouldn't get a 30-yr term and invest the difference? If you're not disciplined at all then yes a whole-life policy might be for you. 30 years is enough time to self insure yourself or at least not need as much insurance in 30 years. Come on guys. You're never using OPM when you have investments within an insurance policy. You just overpaid your premiums or that money is allocated for the investment part of the policy. This is not a matching 401k program where the insurance company matches your investment. There is no OPM.
How do I get a bank to loan me my whole life insurance premium? 14:47
So you are telling me that all those gurus on tiktok are trying to scam me ?
Why else would do those videos? Or they are selling your information to China.
Why do you need more insurance to cover your increased income? There is a strategy that is "needs based" insurance. if you have no debt and your dividends on your investment covers your annual expenses in such a way that your principle is not touched, explain why I or my loved ones would need insurance? They wouldn't. Great presentation; however, I vehemently disagree with 97% of what is presented here.
This would be great if the cash value loan you take out to invest was interest free.
So is the cash value of a whole life insurance plan a part of the policy amount. (Example if have a $20000 dollar policy and cash value of 5000 and decide to use that 5000, will my policy now be worth 15000?)
If you don't pay it back. But depends on what company you're with. You will still make interest and dividends with a mutual company as long as you pay the premium so those values will grow over time.
Good video ✅️
"Whole Life insurance is a very bad investment" I vote for that; On top of this, I'd say the WL insurance is the best permanent life product that it helps you to build yourself a life time tax-free asset !
Beautiful ❤
More assets more become wealth
How about IUL
Great video. But how can you invest the money of the whole life if you don’t have access to it . Because it’s not a bank that you can just ask for that money ?
Whole life is not an investment. For the record. It’s a life insurance policy that has a “perk” of having access to cash. You DO have access to cash as soon as you pay your premium, as long as the policy is designed for max cash value. If it is not designed as such there is a possibility of having to wait a few years until there’s enough cash built in the policy for you to access.
Please send me more info, regarding this thank you and how to apply
Why pay for more then 1 insurance when its only for your family to replace your income God forbid something was to happen to you. $300+ a month to possibly get some money back from your insurance is a rip off. Investing the difference and getting term insurance makes more sense. This is why people get riped off getting the wrong information.
Said like a true Wall Street salesman that does not No what he is talking about. Try demonstrating the math if you can.
Don't you have other videos recommending whole life?
You don’t build up enough cash value to take out anything without surrender charges for like 7 to 10 years.
Is it a good idea to have a 30 year Term Life Insurance and a Whole Life Policy?
Yea it is especially if your in your 40s and up I'd think
What’s a good life insurance company?
What becomes of the cash value when the insured passes?
The cash value and death benefit is one in the same. Cash value is the prepayment of death benefits. So when the insurer passed the death benefit is paid out minus any outstanding loans of the cash value. Here is a video we did talking about cash value @ 0:27 in. ruclips.net/video/H6XfQqZ84TA/видео.htmlsi=CMlkyExXjYe5u79x
It's returned to the insurance company.
Videos like this make me sad. I have insurance license in multiple state & investment licenses. NEVER MIX the two! CV grows at 2-4% ... you have to PAY BACK CV money you withdrew at 7-9% interest! Term has living benefits! If you put too much money in your CV, and it doesn't match death benefit, the death benefit will increase to match CV. If your premiums are $4000 a year and you pay more than that your WL policy will turn into a MEC!! Etc etc. Do better please!!!
given your expertise, where do you suggest learning more about WHL and investment capabilities using the loans on the policy?
@brimi003 I wouldnt invest in WL policies for the purposes of using it as a loan, and I wouldn't use it as an investment vehicle. There are many sources you can research.
Can I used the cash value to buy an annuity?
96 percent for term never pays out. - Why even bother throwing money away for the entire term? After the term it will be hard to find coverage in old age. - Tax benefits are awesome for whole life for borrowing to pay debt etc.
Modern whole life is a scam.
My wife and I are moving for her career. I get to bring my job with me. Before starting with the move we each took out a $1 million dollar 10 year term life policy. They cost less than $100/month for both. If something were to happen to one of us in close proximity to the move it would be really bad. The idea is a 7% return on $1 million plus our employer offered life insurance would completely offset one of our incomes.
Our income is doubling and cost of living should be going down enough that we have a goal of getting to $1 million invested in the next 10 years. Then there will be no need for a term life policy after that. Mitigate the risk. If we don't meet our goal we'll have to figure out if we still need life insurance.
Modern whole life or term insurance?
What do you menean 7% in 1million…? In the term policy!? Term doesn’t give you any interest… just wondering where that 7% came from…
Great explanation! In real life, most people that buy Term end up with no life insurance and a lot of regrets. They usually invest in the stock market which has only returned about 4% for investors over the past 30 years. They usually spend their stock market-based accounts... They usually leave their family only $10,000 when they die.
Whole Life holders have a lot of tax-free cash value and often leave behind hundreds of thousands of dollars to their survivors and life insurance and health protection that grows with them. If they work with a solid Mutual company they even have a nice supplement to their retirement income that is not market based. Nice job!
So many terrible assumptions made here. You must be a whole life salesman
I need a consul right away. Let me try Caleb
Hi Carla! If you click on the link in our description you can apply to meet with a member of our team ASAP.
Correct! Not an investment. Why say it is?
i don’t get it
Video is all over the place...🤨
They are concise and informative imo
You must be a whole life insurance salesman 😂
@@tsx0013 I'm not.
Why do you say that? They seem to be on point and on subject to me
I respectfully disagree with the comment mentioned above regarding the video was all over the place. Unfortunately, I don’t have a financial background or had parental guidance in the matter. However, I understood the synopsis and differences explained in the video between Term and Whole Life insurance. I currently have a term life insurance with Northwest Mutual because what I do understand is that death and taxes are guaranteed.
So when you take out your cash value do you have to pay it back with interest?
Yes. 5-8%
Great video. Thank you.
When you die, do you get both your savings AND the death benefit?
Never. The insurance company keeps the savings account.
Correct, it’s a scam because you lose your cash value. Better to do term for a long time and invest the money you saved
@@codygustafson4665 Exactly.
@@SublimeThinker and not only that but if you have borrowed against your cash value and haven't repaid it before your death then they deduct that amount... FROM THE DEATH BENEFIT PAYOUT! leaving your loved ones with less than you were supposed to leave them with (thus requiring you to pay for a much larger policy if you want to use it this way)
@@Lon1001 Facts!
This video is so confusing
I understand whole life and after watching I don’t know what they’re talking about
Hello. What software do you use to make these videos?
What happens when you borrow money from cash value whole life insurance,,, and you can’t pay back the money,,,,you borrow from the policy,,,..?
you will continue to pay interest on the loan to the insurance company and when you die they will deduct the amount you owe out of the death benefit. i.e. borrowing from your policy presents a risk to the whole reason you bought insurance in the first place: to provide for your beneficiaries.
Lord this is a lot. I need a zoom consultation. 🤦🏽♀️
Will your policy charge interest for the cash value you’re taking out? (I’m assuming as a loan)
You can take it from dividends as well.
Yes they do. I borrowed against mine and they charged
@@monicaanderson3144, there’s many ways to take money out from your cash value without paying interest. I could guide you how to do so. ¿Which company did you use for your policy?
Mine the interest goes back into to policy not to the insurance company.
“ get a term life insurance policy and put the difference as investment in the stock market all this instead of getting a whole life insurance policy “ ?! This is the worse advice
Any whole life insurance policy is better than term life insurance
What i got from this is Term Policies are a scam!
Are you with wfG that is fake
gfi is trash too
So Confusing!🤷🏽♂️
So for a person 50+yrs old what is the best option?
Whole life . Why so late to the party.
@@youngdemon8110 My younger years my head wasn’t thinking rite! Didn’t have the money to put into ins.,Wish I did!Any advise on where to start looking?
If you have a nest egg and a proper will then don't take out life insurance, just "self-insure"
The best option is to talk to an educated and trained financial professional. And to make it better make sure that individual is a fiduciary.
Thank you
Why do you need that much money for a burial?
Who offers convertible term?
Nah in one year , your whole life insurance wont accumulate 2800$. Dont ever go whole life
I’m rich. Rich people don’t do what you’re saying to do with whole life.
what do they do?
@@thelastgeneration1926 start businesses, real estate, stocks, bonds
Does it in anyway apply in Africa
Halo Carmen hablas Español?