I really like Dave because he’s not trying to get one over on people. He’s honest, Tell it like it is, and make sure you understand. God has blessed us with him.
*GREAT VIDEO DAVE* | Yes, you’ve got to get rid of that whole life insurance policy. The ONLY reason you’d keep it open is IF you were no longer insurable. Otherwise, make sure you to term and use any cash value to pay off consumer debt then invest for the future! Great video Dave! 😎👍🏻👌
Did you realize her permanent policy was already paid up? So now she loses like half her death benefit value when it is cashed in, loses all future dividends, and has to pay on a liability now per this advice to keep term.
Some life insurance companies should not offer permanent insurance due to their credit rating. However, a solid policy builds the cash value AND death benefit simultaneously while paying dividends. Some of the cash value can be utilized in an economic downturn (i.e. 2007) instead of liquidating retirement accounts at a discounted price. Visit someone from NW Mutual - 1 of 5 AAA credit rated companies in the world
@@ACD-gr8vg - "Some of the cash value can be utilized in an economic downturn (i.e. 2007) instead of liquidating retirement accounts" Or you could, you know, take all the money you save in premiums and just keep them as a cash reserve. We could call it an "emergency fund."
Sun Set NOT false you idiot! If you have $2,000,000 in investments and your income is $30,000, it's not necessary! Simple math. People are so stupid on here.
The idea is to create your own insurances as you build wealth eg. When you have enough to replace your phone, ditch the phone plan and start buying them outright and go on a sim only plan. When you have enough to replace your car, ditch your comprehensive insurance and just get the third party.
Thank you Dave. It feels amazing to pay dues. Thank to the universe for bringing this value to me. On BS 1 but small payments are making a huge huge difference .
OMG did Dave really tell this lady to surrender a PAID-UP whole life policy? Yes, the vast majority of Americans are better off buying term and investing the difference, but this lady's situation didn't sound like the vast majority of Americans. I'd for sure do more research on that policy and her entire financial situation before recommending surrendering. I bet this policy would earn 4% or more over the long term if she held on to it and had it represent the FIXED portion of her portfolio, and then she could go that much more aggressive on her other investments. Dave is wrong to say it will just earn 1% to 2% forever (it will the first decade to recoup acquisition costs). Also, buying whole life is like buying a house, and your premium is like paying a mortgage. Everyone knows the value of their house isn't worth the market value of the house + the equity in the house. Same with WL, the death benefit is worth the face amount, and you're cash value is like your house equity and you pay insurance charges (instead of interest like on a mortgage) on the death benefit balance outstanding. Also, be wary of surrendering old policies, might be rich guarantees in them. But Dave's advice is accurate for the most post for new sales.
I’m quite confused about what he says too. The investment inside my universal life, made 12% average in 2021, and in 23 (now) it is averaging 7.2%. I’m pretty sure the insurance doesn’t get the payout either, but I’m in the process of finding out. (However, I am not happy about how much the life insurance part of it costs, which is why I may get out of it). But just to mention it, it’s definitely not doing as little as 1-2% as Dave mentions.
I'm debt free, never owned a new car. I have 2, a 09' Ford Escape "Grandma Car" with 65k miles on it & I have a 02' Blazer. I've owned them for 7yrs after paying cash & they've been great. I did win $2500 from the TX Lottery but not sure where or how to invest. I have no savings. Wife works & I'm on SSI/DI= $44k a year, $22 is nontaxable.
This is usually true but not always, there are some riders out there to let you keep your cash value but you pay even more. Mutually companies pay dividends into the policies but I still don't think it works for most people.
Robert Spencer it’s written in all whole life policy contracts, small lettering and in the middle of a paragraph that dividends are not guaranteed. I met a guy who got a 1cent dividend check from his whole life!!
HOW did this come up now? My insurance plan just sent me a "will you upgrade to Whole Life?" offer yesterday, and I had wondered if Dave had anything to say about it. o.O
If the majority of people are broke and live on paycheck to pay check than the majority of people need whole life insurance. Term life insurance is great if you actually build wealth and you become a millionaire by the time the term policy ends and you won’t need life insurance at that time. But most people won’t build wealth and most people are broke therefore most people are better off with whole life insurance. I have talk to many broke senior citizens that are unhappy that there term life policy is ending and most wish they went with whole life from the start.
Most people living paycheck to paycheck just need to learn how to manage their money better. But, I guess showing people how to do that doesn't sell as many life insurance policies...
If a person is broke living paycheck to paycheck, how is he/she going to afford the whole life premiums that are (at least) 20 times more expensive than term?
Why is she calling when she already knows the answer? Whole life insurance is the biggest scam. I helped a friend who had whole life policy with ZERO cash value after 8 years and life insurance on his minor children. He saved HUNDREDS after replacing that with term insurance.
Whole life insurance is not an investment when your rate of return is negative where you lose the principal and have to keep paying to keep the policy active.
doesn't the beneficiary get the cash value as well? the only time they take the cash value out of the death benefit is if any cash value that you have an upaid loan on. Correct me if I'm wrong but I haven't seen anywhere where the cash value is just inherited by the insurer.
Great question, the cash value is KEPT by the insurance company. This is no secret as many life insurance salesmen will tell you the BS "equity" example on why it's kept. Hope this helps.
@@ewinslow822 Paying an insurance company to BORROW against your own money is BS. The premiums on trash value insurance is (at least) 20 times more than term, that's BS. In the first 4 years of owning your whole life policy, you accumulate ZERO cash value, that's BS. The true rate of return on your cash value in a whole life policy is 1.2%, that's BS.
Throwing away a garneted death benefit that you can borrow against and pay back at your own pace to pay down debt seems like bad advice to me. Why not take out a policy loan and pay down your debt so the money is there for you to use again? 200 grand a year? If that policy is set up correctly there's a lot she could finance. why throw away all that savings by cashing it in.. I'd try to sell it before I straight up cashed it out.
It really depends on what the rates were when you bought the whole life policy. Hers going back 6 years isn’t much. But what were CD rates at most banks. .01% on some savings. 2 yr CD 1%.... but what happens when the term life policy ends and person is in older and in bad health. Suddenly term policies are $4k a year....
If you're older and in poor health what's the point of life insurance? It won't pay your medical bills... the idea is that it can be used to pay off your house, or help your kids go to college, etc. It's designed to replace income for your surviving spouse or those dependent on you, not provide a windfall for your family. Insurance companies hire smart mathematicians to ensure that they make money on almost every policy.
the reason why term insurance is cheaper because the insurance company know that most of people out live their policy. Once the policy is over, insurance company could keep everything and that person good luck getting another insurance because that person is old ant not so healthy and their premium will skyrocket. I have whole life insurance and the beauty is i don’t have to die to get the funds. God forbid, if i have health issue i could get 75% of my policy for my medical expense. My kids they have whole life insurance and they are covered for 123 years.
@@beautifulmom5975 I agree. I have listened to this term versus whole life for years. I chose whole life. People have unfortunate things happen in their life. Their future assets sometimes are not worth what they had planned. Some people have died and did not leave enough assets for their burial. Why tell someone to cancel a policy that the person has had for years? Apparently paying the premium is not a burden to that individual.
I put my $5000 emergency funds into a money market mutual fund. Is this a smart thing to do? I have $12k in a retirement fund and about 10k invested in stocks and $6k in my checking account. Im 30 and just started investing.
@Justin Draxx I'm just learning about it so there are plenty of people that could give you a better discription. Basically its an investment that is insured by the FDIC up to 250,000. So if the market crashes you don't lose everything. You get 2.5 percent interest depending on the market and someone is paid to watch the investments. I know this isn't a perfect description since I'm still learning.
As ramsey says, your emergency fund is not an investment, it protects your investments. Lets say their is a recession and you lose your job, thats when you will need your emergency fund but what also occurs at a recession is stocks could also take a hit.
Your emergency fund should just be sitting in your bank, don't worry about making interest on it. Your emergency fund is insurance, not an investment. Put it somewhere that you can access it immediately, it should be very liquid. And no, don't use a credit card for emergencies, that just puts you further up the creek.
No wonder they drove 50 miles to see me and my husband. They convinced us and we completing two years 🤷🏾♀️ I can’t cancel my husband health is at risk or my health they will pay my bills.
Hello everybody, Dave is talkin about life insurance for 5-7$ where to find that? I tried his website and my life insurance would be $29 . I will really appreciate if anybody can answer my question.
Lazari Vlad Hey man. What Dave means is mathematically if you were paying $95 for a while life policy in premium, you would be paying $5-7 for the same amount of coverage in a term insurance
Dave was saying $5 per 100k of coverage. I have a 300k policy that costs me $13.65 per month. But truthfully, the rates do depend on a number of variables. But if your term rates are higher for your situation, you better believe your Whole Life rates are also higher too.
@@astroman30 return of premium. Pay to have that protection in place as contingency for your family and if you dont pass away you get every dime back that you paid into it. Its essentially a savings account
If, as they claim, there are policies that exist where you do actually get your DB and cash value upon death, would that make this any better of a value proposition?
I understand closing the whole life but what if you have a good term policy? Should you still close the whole insurance policy and start with a new company just solely for the term? What are the main areas that you should look into when looking for a new term insurance? In addition how do you calculate the face value you should receive upon cashing out the whole life value insurance?
Dave recommends buying a term face amount of 10 times your income. Stay away from whole life, variable life, IULs, infinite banking or any other cash value garbage that you will be scammed into buying.
My father (91 yrs. old) took a million whole life policy via fast talking scammer 40yrs ago. Cash value at approx $400,000 , policy At 1.5 million. I stopped paying monthly premiums after getting educated. Is there anyway to get out without being penalized as I do NOT trust asking my insurance agent ? Feedback greatly appreciated.
How exactly did you get educated? I hope to God you weren't the beneficiary. lol $400,000 in cash value is A LOT of capital you could put to work for you/him.
Call one of Dave's ELP (endorsed local provider) and have them go over it with you. Don't listen to any of the low-life salesmen on here telling you to keep it.
Term is at least 20 times cheaper than whole life. The idea is to buy term at a cheaper price and invest the difference between term and whole life prices in a matching 401K or ROTH IRA. Thus, you get to keep your cash investments unlike the cash value in a whole life policy where the crooked insurance company keeps it.
(A) Dave doesnt recommend specific mutual funds. Some smartvestors use front-load funds but the good long-term growth rates arguably justify the fees (b) you can use Dave's investing advice anywhere and pay lower fees
If you can't get by off of 34.000/yr for 50 years then yeah idk what to tell them. Obviously more would be nice but it's much more than enough to survive a decent life.
Dave is missing the problem here. The is risk to leaving a paid up policy. I agree that you should run early, but I would do the math of recouping the DB through the investment of the CV.
It's how much of your income would your family/survivors need to replace. If your family would need 50k/year of your income, insure for at least 10x that (500k) so they can invest the payout and the interest earned each year will be ~50k. That's the basic idea.
The first year of my policy has almost 60% of what my premium. I use permanent whole life insurance. The second year has almost 85% of the premium. Sounds like these guys got the wrong type of policy. So sad, because a whole life policy can be the foundation for anyone's financial foundation.
Question i have a univers whole policy and i am disabled from birth with CP and should not be insureable but they insured me. Should i now drop it or keep it knowing i cant get another policy?
try to get term life to replace it before doing anything with it. All you can do is try. If they say no, it wont hurt you. After that, probably keep it if your income is taking care of other people.
If you're still paying on it then the obvious answer is to cancel it. Don't continue to overpay. If, however, it's already fully paid up then it will depend on your situation. For instance, if you're already close to retirement you might as well keep it. But it might make sense to take the cash value and use that to pay debt or invest. My wife and I cancelled a paid up whole life policy of hers about 15 years ago and it was a great decision. That cash value helped us get out of debt and now we have a paid for house and a ton of investments. Run the numbers and see what you think.
Universal life policies that include UL, VUL, IUL...etc. are worse than whole life. The cash value is eaten up by all the fees/commissions leaving you out of pocket costs to cover the term.
A fools argument. Forfeiture of a paid up permanent policy in favor of a temporary policy with 97% liklihood of losing all your money. This is a massive loss of net worth.
The point is that you save what you would've put into a whole life policy and put it into a much better mutual fund instead, and earn a lot more interest, and when you die that money is in your name, you don't have to try to get it from a life insurance company. When you build up enough assets, you become your own life insurance and no longer need to buy it. Don't do whole life's garbage savings plan, do cheap term and do your own savings plan, you'll save way more money and get way more in insurance should you unfortunately die before the term expires.
I get it. However, term expires and depending on your age and finances it could be difficult down the road especially if your health changes. You will have issues qualifying and it could be costly for either term or whole. Every person and every need is different. Consider your age when taking out a policy.🤗
I actually found Dave’s channel through an agent trying to sell me a whole life policy. (Back then I had no idea what it was.) My goodness I was going to be seriously ripped off. The whole life agent tried to sell me a policy with a premium of $140/month. I’m on a term plan for 35 years now with a premium of $32/month on top of that I’m getting about $50,000 more in coverage. DO NOT BUY WHOLE LIFE.
Dave Ramsey doesn't know what he is talking about when it comes to life insurance. Term insurance should not be kept for longer than 10 years. You should have whole life or universal life in place when you are younger and it is cheaper. Term insurance becomes very expensive in your 50s. As you get older and develop health problems is when you need life insurance. Ramsey is giving incompetent advice.
Why not keep it, double it by borrowing it tax free, and invest more than the difference while both grow. Savings... such a scammy product and idea... LOL. This guy is criminal...
Whole life insurance comes in many flavors, there are proper designs that can grow above 4% compound interest yearly. Without learning more about the details of her policy, Dave is not qualified to make such assertive judgement.
Andres Agudelo how is the money not yours if you can access it contractually? Some of his advice are half-truths at best and extremely dangerous at worst. If whole life is so bad, why do wealthy people and banks purchase a ton of it?
Thomas Suvansri The money is not your because if you take out your cash value you have to pay it back, you’re pretty much taking out a loan on your own money with interest, if you don’t pay it back, they deduct it from your face value. Get me?
@@andresa6049 people take loans so that it doesn't become taxable income. You can also withdraw up to the total premium you put in, in that case no need to repay it.
Life insurance isn't an investment Dave! When properly structured it's a superior savings and banking alternative vehicle. I'm sorry you're so closed minded and give your audience such outdated and short sighted advice. The wealthy use these products differently then the middle class or you describe them being used.
Oh, another Life Insurance 101 phrase of, "Properly Structured." I bet you also use the words, "Absorbed" and (my personal favorite) "Equity." The mega wealthy buy WL insurance to pass assets along to heirs, not as an investment. Being the federal inheritance tax starts at $11.7 million and very few states have a inheritance tax, most people don't need to buy this garbage. Try harder.
Dave is always doing better than he deserves
Better than I deserve
I really like Dave because he’s not trying to get one over on people. He’s honest, Tell it like it is, and make sure you understand. God has blessed us with him.
Sold our policies and invested the cash proceeds.
*GREAT VIDEO DAVE* | Yes, you’ve got to get rid of that whole life insurance policy. The ONLY reason you’d keep it open is IF you were no longer insurable. Otherwise, make sure you to term and use any cash value to pay off consumer debt then invest for the future! Great video Dave! 😎👍🏻👌
Did you realize her permanent policy was already paid up? So now she loses like half her death benefit value when it is cashed in, loses all future dividends, and has to pay on a liability now per this advice to keep term.
Thanks for helping me before buying these scammy products
Some life insurance companies should not offer permanent insurance due to their credit rating. However, a solid policy builds the cash value AND death benefit simultaneously while paying dividends. Some of the cash value can be utilized in an economic downturn (i.e. 2007) instead of liquidating retirement accounts at a discounted price. Visit someone from NW Mutual - 1 of 5 AAA credit rated companies in the world
@@ACD-gr8vg - "Some of the cash value can be utilized in an economic downturn (i.e. 2007) instead of liquidating retirement accounts"
Or you could, you know, take all the money you save in premiums and just keep them as a cash reserve. We could call it an "emergency fund."
Don't listen to whole life salesmen. They're scammers.
It's important for people to remember that you don't need life insurance if the assets left behind will replace your income 🤔
False !
Life insurance is how families keep their wealth, generation to generation.
Term policy only
Sun Set NOT false you idiot! If you have $2,000,000 in investments and your income is $30,000, it's not necessary! Simple math. People are so stupid on here.
thats why im only keeping mine till 50 and my wife till 40 :)
The idea is to create your own insurances as you build wealth eg. When you have enough to replace your phone, ditch the phone plan and start buying them outright and go on a sim only plan. When you have enough to replace your car, ditch your comprehensive insurance and just get the third party.
So glad to hear Dave’s life experiences along with his advice.
She said she’s had it for about 6 years and she’s already paid all of her premiums. This could be a MEC. She may need to take that into consideration.
There are people still on RUclips trying to sell this garbage
Yes, Daniel B. is one of them....lol!!!
Thank you Dave. It feels amazing to pay dues. Thank to the universe for bringing this value to me. On BS 1 but small payments are making a huge huge difference .
OMG did Dave really tell this lady to surrender a PAID-UP whole life policy? Yes, the vast majority of Americans are better off buying term and investing the difference, but this lady's situation didn't sound like the vast majority of Americans. I'd for sure do more research on that policy and her entire financial situation before recommending surrendering. I bet this policy would earn 4% or more over the long term if she held on to it and had it represent the FIXED portion of her portfolio, and then she could go that much more aggressive on her other investments. Dave is wrong to say it will just earn 1% to 2% forever (it will the first decade to recoup acquisition costs). Also, buying whole life is like buying a house, and your premium is like paying a mortgage. Everyone knows the value of their house isn't worth the market value of the house + the equity in the house. Same with WL, the death benefit is worth the face amount, and you're cash value is like your house equity and you pay insurance charges (instead of interest like on a mortgage) on the death benefit balance outstanding. Also, be wary of surrendering old policies, might be rich guarantees in them. But Dave's advice is accurate for the most post for new sales.
I’m quite confused about what he says too. The investment inside my universal life, made 12% average in 2021, and in 23 (now) it is averaging 7.2%. I’m pretty sure the insurance doesn’t get the payout either, but I’m in the process of finding out. (However, I am not happy about how much the life insurance part of it costs, which is why I may get out of it). But just to mention it, it’s definitely not doing as little as 1-2% as Dave mentions.
I'm debt free, never owned a new car. I have 2, a 09' Ford Escape "Grandma Car" with 65k miles on it & I have a 02' Blazer.
I've owned them for 7yrs after paying cash & they've been great.
I did win $2500 from the TX Lottery but not sure where or how to invest. I have no savings. Wife works & I'm on SSI/DI= $44k a year, $22 is nontaxable.
Just this afternoon I was looking at new trucks, wanting one. A sign from God with the posting of this video.
You cant afford to buy something if you dont have the cash in your account to buy 5 of them.
Ben Hayen remember want vs need when you’re feeling weak
This is usually true but not always, there are some riders out there to let you keep your cash value but you pay even more. Mutually companies pay dividends into the policies but I still don't think it works for most people.
Robert Spencer it’s written in all whole life policy contracts, small lettering and in the middle of a paragraph that dividends are not guaranteed. I met a guy who got a 1cent dividend check from his whole life!!
@@andresa6049 true, wonder which company that was. I've seen bigger dividends but you're right they are not promised
HOW did this come up now? My insurance plan just sent me a "will you upgrade to Whole Life?" offer yesterday, and I had wondered if Dave had anything to say about it. o.O
If the majority of people are broke and live on paycheck to pay check than the majority of people need whole life insurance. Term life insurance is great if you actually build wealth and you become a millionaire by the time the term policy ends and you won’t need life insurance at that time. But most people won’t build wealth and most people are broke therefore most people are better off with whole life insurance. I have talk to many broke senior citizens that are unhappy that there term life policy is ending and most wish they went with whole life from the start.
Most people living paycheck to paycheck just need to learn how to manage their money better. But, I guess showing people how to do that doesn't sell as many life insurance policies...
If a person is broke living paycheck to paycheck, how is he/she going to afford the whole life premiums that are (at least) 20 times more expensive than term?
Why is she calling when she already knows the answer? Whole life insurance is the biggest scam. I helped a friend who had whole life policy with ZERO cash value after 8 years and life insurance on his minor children. He saved HUNDREDS after replacing that with term insurance.
Whole life insurance is not an investment when your rate of return is negative where you lose the principal and have to keep paying to keep the policy active.
@@verysmarteducation Amen!!!
When cashing or surrendering whole life, does it affect your taxes?
doesn't the beneficiary get the cash value as well? the only time they take the cash value out of the death benefit is if any cash value that you have an upaid loan on. Correct me if I'm wrong but I haven't seen anywhere where the cash value is just inherited by the insurer.
Great question, the cash value is KEPT by the insurance company. This is no secret as many life insurance salesmen will tell you the BS "equity" example on why it's kept. Hope this helps.
@@astroman30 why is it bs?
@@ewinslow822 Paying an insurance company to BORROW against your own money is BS. The premiums on trash value insurance is (at least) 20 times more than term, that's BS. In the first 4 years of owning your whole life policy, you accumulate ZERO cash value, that's BS. The true rate of return on your cash value in a whole life policy is 1.2%, that's BS.
Throwing away a garneted death benefit that you can borrow against and pay back at your own pace to pay down debt seems like bad advice to me. Why not take out a policy loan and pay down your debt so the money is there for you to use again? 200 grand a year? If that policy is set up correctly there's a lot she could finance. why throw away all that savings by cashing it in.. I'd try to sell it before I straight up cashed it out.
Do whatever you need to do with it
I have a northwestern mutual whole life policy. Is that bad too? Been paying into it for 7 years.
My family too, I’m lost on the cash value If one dies. Just read our policy it reads as if it’s bundled.
Dave keep inspiring!
It really depends on what the rates were when you bought the whole life policy. Hers going back 6 years isn’t much. But what were CD rates at most banks. .01% on some savings. 2 yr CD 1%.... but what happens when the term life policy ends and person is in older and in bad health. Suddenly term policies are $4k a year....
If you're older and in poor health what's the point of life insurance? It won't pay your medical bills... the idea is that it can be used to pay off your house, or help your kids go to college, etc. It's designed to replace income for your surviving spouse or those dependent on you, not provide a windfall for your family. Insurance companies hire smart mathematicians to ensure that they make money on almost every policy.
the reason why term insurance is cheaper because the insurance company know that most of people out live their policy. Once the policy is over, insurance company could keep everything and that person good luck getting another insurance because that person is old ant not so healthy and their premium will skyrocket. I have whole life insurance and the beauty is i don’t have to die to get the funds. God forbid, if i have health issue i could get 75% of my policy for my medical expense. My kids they have whole life insurance and they are covered for 123 years.
@@beautifulmom5975 I agree. I have listened to this term versus whole life for years. I chose whole life. People have unfortunate things happen in their life. Their future assets sometimes are not worth what they had planned. Some people have died and did not leave enough assets for their burial. Why tell someone to cancel a policy that the person has had for years? Apparently paying the premium is not a burden to that individual.
@@rayj.9568 This is so true, though I dont want to speculate on Ramsey's motivation this doesn't sound right.
I put my $5000 emergency funds into a money market mutual fund. Is this a smart thing to do? I have $12k in a retirement fund and about 10k invested in stocks and $6k in my checking account. Im 30 and just started investing.
@Justin Draxx I'm just learning about it so there are plenty of people that could give you a better discription. Basically its an investment that is insured by the FDIC up to 250,000. So if the market crashes you don't lose everything. You get 2.5 percent interest depending on the market and someone is paid to watch the investments. I know this isn't a perfect description since I'm still learning.
@Eric Cox This is what I was planning on doing. I didn't realize it took time to get the money out, thanks for the heads up.
As ramsey says, your emergency fund is not an investment, it protects your investments. Lets say their is a recession and you lose your job, thats when you will need your emergency fund but what also occurs at a recession is stocks could also take a hit.
Your emergency fund should just be sitting in your bank, don't worry about making interest on it. Your emergency fund is insurance, not an investment. Put it somewhere that you can access it immediately, it should be very liquid. And no, don't use a credit card for emergencies, that just puts you further up the creek.
Thank you for the advice, Dave!
Is there a way to get the cash value out of my whole life insurance and then cancel it to replace it with Term life insurance?
Yes, buy the term policy first, then cancel the whole life.
No wonder they drove 50 miles to see me and my husband. They convinced us and we completing two years 🤷🏾♀️ I can’t cancel my husband health is at risk or my health they will pay my bills.
Term premium goes up every few years and it expires at age 70 and there's no cash value and if you have medical issues you're in trouble.
Yet, the premium on whole life is (at least) 20 times more than term....AND, the insurance company KEEPS all your cash value....it's garbage.
Whole life policy is like an elevator cuz you're getting the shaft
You can use this on the show as long as you say listener by the name of Kale
Amen!!
What if the policy guarantees 4%?
Once fees/commissions are taken out, the ROI is around 1.5%.....garbage.
Hello everybody, Dave is talkin about life insurance for 5-7$ where to find that? I tried his website and my life insurance would be $29 . I will really appreciate if anybody can answer my question.
Lazari Vlad Hey man. What Dave means is mathematically if you were paying $95 for a while life policy in premium, you would be paying $5-7 for the same amount of coverage in a term insurance
Andres Agudelo thank you very much 👍
Dave was saying $5 per 100k of coverage. I have a 300k policy that costs me $13.65 per month. But truthfully, the rates do depend on a number of variables. But if your term rates are higher for your situation, you better believe your Whole Life rates are also higher too.
Dave questions?
Can a student loan be forgiven after 25 years under the ICR plan?
For investing OBVIOUSLY not....Insurance otherwise is a GREAT option. Not to mention if you can get a ROP. No brainer
ROP?
@@astroman30 return of premium. Pay to have that protection in place as contingency for your family and if you dont pass away you get every dime back that you paid into it. Its essentially a savings account
@@dante009.5 if you’re talking about term, I’m good with it. Yet, it will require a rider or higher premium.
If, as they claim, there are policies that exist where you do actually get your DB and cash value upon death, would that make this any better of a value proposition?
They accomplish this with even higher fees. Whole Life already has outrageous fees. I'm guessing it's still a bad buy.
I don't like whole life insurance.
Hiw does he know what the caller needs? He seems like he just met her and already gave advice.
I understand closing the whole life but what if you have a good term policy? Should you still close the whole insurance policy and start with a new company just solely for the term? What are the main areas that you should look into when looking for a new term insurance? In addition how do you calculate the face value you should receive upon cashing out the whole life value insurance?
Dave recommends buying a term face amount of 10 times your income. Stay away from whole life, variable life, IULs, infinite banking or any other cash value garbage that you will be scammed into buying.
My father (91 yrs. old) took a million whole life policy via fast talking scammer 40yrs ago. Cash value at approx $400,000 , policy At 1.5 million. I stopped paying monthly premiums after getting educated. Is there anyway to get out without being penalized as I do NOT trust asking my insurance agent ? Feedback greatly appreciated.
It's very hard to say without actually having an expert review your policy with you And discussing some of your financial goals
How exactly did you get educated? I hope to God you weren't the beneficiary. lol $400,000 in cash value is A LOT of capital you could put to work for you/him.
Call one of Dave's ELP (endorsed local provider) and have them go over it with you. Don't listen to any of the low-life salesmen on here telling you to keep it.
Did she say how old she was? Dave needs to run the numbers again because these policies definitely serve a purpose and have value.
So if WL insurance its so bad, what is good? Term? why?
Term is at least 20 times cheaper than whole life. The idea is to buy term at a cheaper price and invest the difference between term and whole life prices in a matching 401K or ROTH IRA. Thus, you get to keep your cash investments unlike the cash value in a whole life policy where the crooked insurance company keeps it.
I recommend teachers get a 20 year term 10x their income
the same high fees exist on mutual funds Dave recommends, whats the difference?
(A) Dave doesnt recommend specific mutual funds. Some smartvestors use front-load funds but the good long-term growth rates arguably justify the fees (b) you can use Dave's investing advice anywhere and pay lower fees
Ummm......because you get to KEEP your money unlike the cash value in a whole life policy.
I wish 1.7 million would probably take care of me. If 1.7 million does not take care of most people something is wrong.
If you can't get by off of 34.000/yr for 50 years then yeah idk what to tell them. Obviously more would be nice but it's much more than enough to survive a decent life.
Dave is missing the problem here. The is risk to leaving a paid up policy. I agree that you should run early, but I would do the math of recouping the DB through the investment of the CV.
Is it part of the baby steps? No...? Then throw it in the trash.
Dave what do I think of universal life? 20 pay ( pay for 20 years and the interest pays the premium thereafter.)
How should I determine how much term insurance I need.
Between 10x and 20x your income
It's how much of your income would your family/survivors need to replace.
If your family would need 50k/year of your income, insure for at least 10x that (500k) so they can invest the payout and the interest earned each year will be ~50k. That's the basic idea.
No I don’t agree with this . @dave what happens if someone dies at 21 and his term psilocybin ended at 20 ZERO
The first year of my policy has almost 60% of what my premium. I use permanent whole life insurance. The second year has almost 85% of the premium. Sounds like these guys got the wrong type of policy. So sad, because a whole life policy can be the foundation for anyone's financial foundation.
No....it's garbage.
Question i have a univers whole policy and i am disabled from birth with CP and should not be insureable but they insured me. Should i now drop it or keep it knowing i cant get another policy?
try to get term life to replace it before doing anything with it. All you can do is try. If they say no, it wont hurt you. After that, probably keep it if your income is taking care of other people.
keep it
What should I do with my whole life?
Make money, pursue positive passions, help others, and expand freedom for others to do the same
Keep it because you will never get a premium rate that cheap again
If you're still paying on it then the obvious answer is to cancel it. Don't continue to overpay.
If, however, it's already fully paid up then it will depend on your situation. For instance, if you're already close to retirement you might as well keep it. But it might make sense to take the cash value and use that to pay debt or invest. My wife and I cancelled a paid up whole life policy of hers about 15 years ago and it was a great decision. That cash value helped us get out of debt and now we have a paid for house and a ton of investments. Run the numbers and see what you think.
Cancel it....asap!!!
What of a VUL or VA
Universal life policies that include UL, VUL, IUL...etc. are worse than whole life. The cash value is eaten up by all the fees/commissions leaving you out of pocket costs to cover the term.
A fools argument. Forfeiture of a paid up permanent policy in favor of a temporary policy with 97% liklihood of losing all your money. This is a massive loss of net worth.
People do stupid stuff but I don't need to because I got ramsay 👍
200k income, I wonder what people do and make that much money🤣🤣.
Tell me about it!!! Surprised Mr. Ramsey didn't ask! He always ask when they are in debt, why the school loans were that much!
Sales, consulting, actuaries,bbusiness leadership , small business owners, govt contractors etc
Thanks a million!
$5 for term? My insurance lady told me $20 or $26 per month. Nope. Worth more dead than with life insurance.
Dave is full of it. He’s ok with out living your term life policy and losing every dime you put into it though.
Pearl Harbor 🙄🙄🙄
The point is that you save what you would've put into a whole life policy and put it into a much better mutual fund instead, and earn a lot more interest, and when you die that money is in your name, you don't have to try to get it from a life insurance company. When you build up enough assets, you become your own life insurance and no longer need to buy it. Don't do whole life's garbage savings plan, do cheap term and do your own savings plan, you'll save way more money and get way more in insurance should you unfortunately die before the term expires.
I get it. However, term expires and depending on your age and finances it could be difficult down the road especially if your health changes. You will have issues qualifying and it could be costly for either term or whole. Every person and every need is different. Consider your age when taking out a policy.🤗
Pearl Harbor bruh... 🤦🏼♂️🤦🏼♂️
mrsd6allnatural D6: i agree 100
“I’m sorry.” 😂😂😂
I actually found Dave’s channel through an agent trying to sell me a whole life policy. (Back then I had no idea what it was.) My goodness I was going to be seriously ripped off. The whole life agent tried to sell me a policy with a premium of $140/month. I’m on a term plan for 35 years now with a premium of $32/month on top of that I’m getting about $50,000 more in coverage. DO NOT BUY WHOLE LIFE.
Q The 1 same, my premium is $27 a month for 150k more coverage. I was paying $80!! For 100k whole life lol, it’s garbage
Lottery is scam my opinion.. they can pick me am in Milford Ma lottery people. Cone help I desperately need me
Dave Ramsey doesn't know what he is talking about when it comes to life insurance. Term insurance should not be kept for longer than 10 years. You should have whole life or universal life in place when you are younger and it is cheaper. Term insurance becomes very expensive in your 50s. As you get older and develop health problems is when you need life insurance. Ramsey is giving incompetent advice.
Why not keep it, double it by borrowing it tax free, and invest more than the difference while both grow. Savings... such a scammy product and idea... LOL. This guy is criminal...
What part of "the insurance company KEEPS the cash value" do you not understand?
Whole life insurance comes in many flavors, there are proper designs that can grow above 4% compound interest yearly. Without learning more about the details of her policy, Dave is not qualified to make such assertive judgement.
The money still doesn’t belong to you, so what’s your point?
@@andresa6049 that's Ramsey's typical talking point. And it is flawed.
Andres Agudelo how is the money not yours if you can access it contractually? Some of his advice are half-truths at best and extremely dangerous at worst. If whole life is so bad, why do wealthy people and banks purchase a ton of it?
Thomas Suvansri The money is not your because if you take out your cash value you have to pay it back, you’re pretty much taking out a loan on your own money with interest, if you don’t pay it back, they deduct it from your face value. Get me?
@@andresa6049 people take loans so that it doesn't become taxable income. You can also withdraw up to the total premium you put in, in that case no need to repay it.
WHO LISTENS TO THIS GUY????🤣🤣🤣🤣🤣
Based on your childish emojis, you should listen.
Life insurance isn't an investment Dave! When properly structured it's a superior savings and banking alternative vehicle. I'm sorry you're so closed minded and give your audience such outdated and short sighted advice. The wealthy use these products differently then the middle class or you describe them being used.
Oh, another Life Insurance 101 phrase of, "Properly Structured." I bet you also use the words, "Absorbed" and (my personal favorite) "Equity." The mega wealthy buy WL insurance to pass assets along to heirs, not as an investment. Being the federal inheritance tax starts at $11.7 million and very few states have a inheritance tax, most people don't need to buy this garbage. Try harder.
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Also dave your the best