Is Life Insurance A Good Way To Invest Your Money
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- Опубликовано: 28 авг 2024
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Life insurance can be a crucial part of smart financial planning, but you have to use your life insurance the right way. In this video, you will learn if life insurance is a good investment for your money
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Is Life Insurance A Good Way To Invest Your Money
0:30 - Investing can be overwhelming so life insurance can make that investing process easier
1:32 - Is life insurance a good investment you can make
2:15 - How life insurance works
2:49 - How life insurance companies make money
3:55 - How to beat your life insurance returns
4:30 - The importance of term life insurance and how to use term life insurance the right way
6:24 - How much term life insurance will cost you
6:59 - How to get the best price on life insurance using out sponsor Policygenius
8:19 - Understanding whole life insurance and comparing that to term life insurance and investing your money yourself
10:41 - How to use life insurance the right way
11:24 - What happens if you outlive your term life insurance policy
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This Video: • Is Life Insurance A Go...
Channel: / minoritymindset
Video host: Jaspreet Singh
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DISCLAIMER CONT'D: I'm just a random guy on RUclips so do your own research! Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in these videos. This video, the topics discussed, and ideas presented are Jaspreet's opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
Thank you for watching! If you enjoyed this video, you should watch - 7 Life Insurance LIES You've Been Sold: ruclips.net/video/v-s11GjDnc8/видео.html
What about a Universal Indexed Life Insurance, this will increase 5%-6% and can evantually be used as invesment, Tax Free and will have a Life Insurance for life..
What are your thoughts??
@RC Marti universal isn't whole life; it's term with automatic renewal and the fees go up every year. Over 90% of the time, the investment money is eaten up by the renewal fees by the time you die. I'd recommend Jaspreet's strategy (shared by many) over universal life.
Jaspreet is incorrect about whole life insurance, though. If you want to learn howe to use insurance properly, you need to read/hear all books by R. Nelson Nash, and _What Would Billionaires Do_ by Garrett Gunderson.
Never invest your hard-earned cash in things you don't understand, just because someone else is doing it. Spend time understanding it first.
A co worker of mine appears to not understand women and he's invested a bit in them. Seems like he'd benefit from understanding first.
Financial Lift your co-worker needs to stop investing in depreciating liabilities
@@financiallift6185 If he understood women, he'd stay away from them. 😂
@@ryanweston9677 🤣🤣🤣🤣🤣
Yess!!!
Jaspreet, my life insurance paid out after I suffered a massive "The Widow-Maker" heart attack. I did not have to die to collect within the first year of being insured. Best return ever! I'm a subscriber of yours, by the way....nice content!
Paid out your death benefit or cash value?
That’s awesome man! What insurance company did your claim ?
Awesome, that’s the kind of insurance of have. Life insurance with living benefits.❤
ffiul is great insurance. You have four walls covered the best life insurance that has a cash value
WOW! I had no idea this is how life insurance worked. Once again you have put another notch on the knowledge wheel for me. Thanks again!
Thanks for putting the truth out there. Life insurance is a back stop. Not an investment.
If you have someone depending on your salary then maybe life insurance is worth it. But as your networth increases I don't see any reason for carrying life insurance. It's just a waste of money at that point.
i feel so bad as i got screwed into doing a whole life with an annuity. been paying $400 a month for like 5-6 years now and all i have in the annuity is $9k. people, don't make the same mistake i did. National life brainwashed me since they claim they can cover you better if you get sick and life insurance actually pay for your medical bills.
Depending on your age and health you can get a term policy with living benefits.
I don't click Like on most videos on RUclips, but when I do its only because the video recommends Term over Whole Insurance. Great job Jaspreet Bhai. Stay safe.
The market is really going nut and for an amateur investor like me, it is really scary. I have no idea what to do, should i sell or hold? please i need suggestion guys, i am starting to panic.
It depends, can you handle current/future loss or not?
I rather not have my funds sit in the bank with 0-nothing gains on it, so I possibly might just hold
As you said, you are a novice with little or no experience, and such decisions can be difficult to make even for a long time investor like who has been investing for over 7years. I had to consult an investment adviser who is currently helping me liquidate my assets and reinvest into safe haven assets, I suggest you do the same
Please, I’m going through the same dilemma as well, what investment adviser can you recommend?
I’m currently seeking the expertise of Agatha Christine Robinson, who happens to be an investment adviser and broker, you can get in touch with her online, just look up her name on web.
I was in school today and as I was coming out there was someone with a Lamborghini and I instantly went over to him and started asking him what he dose and he said he dose this he was very chill and I just wanted to know how to do this to see if it works and learn how to do it this video was very helpful thanks 👍👍👍
This is an overall good and safe analysis. But we can add a few details. They won't flip one's opinion one way or the other, but I'd like to add some important details to consider. Again, not knocking safe info for general investing and whole life plans are NOT for everyone. I'm adding, not arguing. :) In the larger goal of generating wealth, a whole life plan offers liquidity and *utility, not appreciation.
1) With a whole life policy you have *enforced savings. That's nothing to downplay. How much would many of us have if we HAD to pay ourselves as religiously as we pay our mortgage for a decade? When you sign a whole life policy, this is what you're achieving. Persistent weight loss, quitting smoking, going to the gym are all great goals we all fail at b/c we leave it up to discipline.
2) After a year or so, your whole life plan would have a cash value that is a fraction of the death benefit value. It is immediately available for you to take out as a loan at all times ...
... 2a) That money is yours. There is no tax paid to the distribution.
... 2b) That money is yours. There is no application, approval, or credit check.
... 2c) That money is yours, not directly tied to a market security or stock. There is no "down market risk" where you can't take out your $10k b/c some ETF is -40% down this quarter.
So, here's where the utility comes in: The fastest way to riches is to start a business - your whole life plan is your start up loan b/c banks don't lend easily to first time businesses. Did C-19 disrupt revenue - your whole life plan can pay your rent before you have to vacate. The market crashes by some once-in-a-century number, and you're fortunately still employed - your whole life plan is the hoard of dry powder you use to buy Apple at 60 % off.
Whole life plans aren't for everyone, but those who own them benefit from using them in these ways.
If i take that cash value money out, do i need to pay interest? Do i need to pay it back or is up to me. Thanks
@@kthippok8380 from what I understand you don't have to pay it back because it will be deducted from the death benefit. Yes you will repay yourself with interest.
BORROWING against your own money only to lose it all to the insurance company, and you think this is a good idea?
What are the fees tho?
And why would I put all my money in the Insurnace when I need it for emergency when I can just save it or invest it and not have to pay any fees or permission to take it out?
Yes I pay taxes but only on the gains and I’m sure it’s less than the fees for the insurance
Once I became a Father's in 1998. According to my Documentation I purchased Whole and Term Life insurance February 2000 and eventually add Accidental Death to Policy. Several Years Later I cancel Whole because I realize Terms better for Me
How much were you paying for whole I’m paying 135 for 150k I’m tempted to keep it for accident death policy because ima laborer so I feel it helps
Are you in bad health? Thats a lot to be paying for such a small amount of coverage
I never knew how the insurance game worked. Thank You Mr. Jaspreet Singh!
Jaspreet, would love you to have a conversation and/or debate with Garrett Gunderson about whole life insurance.
100% agree!! Or Matthew Pillmore from VIP Financial Education
Or Wealth Nation
Thank you for explaining this topic. I hope young married people watched this video. Now is the time to build your wealth. Again thank you will share with my young relatives.
Jaspreet has a heart of gold 💛
Thank you Jaspreet. Great work explaining
The only people who tout it, are those that sell it. I gotta say that the whole infinite banking thing is really interesting though.
With term insurance the money your family gets on a death claim is always a lot more than the total premiums paid, no matter when you die.
Fact: I have been in the insurance industry since 2013. All the state allow the insurance company to return premium if cliant dies in the first 3 years. So your analogy of passing away 2 days later is wrong.
Isn't there lots of different kinds of life insurance policies? Isn't the one you are referring to a graded policy? Isn't there a quite a few that start off immediately?
I get notifications when MM uploads videos but the last few days I have had that hardest times finding your videos. Just wanted to let you know. Thanks for the great content
You had me at, "you're gonna know how to do that by the end of this video". 🤠👍🏽
But you didn’t talk about cash values that build like in a IUL account or when the policy matures and you are no longer contributing to it. Which would be at 55 as well. Also when it comes to term the older you get the more expensive the policy becomes whereas you can get it while young and healthy while it’s cheap and let inflation play its course. I see both sides but would be happy if you address the things I mentioned.
So, what happens to that "cash value" when the person dies?
@@astroman30 it gets paid out
@@crise1 By all means, name your carrier that pays out the DB and CV together.
@@astroman30facts, I was under the impression the cash value went back to the policy if the DB is paid out
Jaspreet, normally I love your videos but you got a major point wrong: Whole life insurance death benefit grows overtime. It doesn't stay as a fixed number.
Plus, plans can also start paying out, like a pension after a certain amount of time, of your choosing.
Plus they have riders that help pay medical bills and change in living expenses like home nurses instead of having to dig into your personal savings, 401K, EFT, and stock part of your portfolio to cover such costs.
Thanks for the video! I would rather invest money in a high quality insurance company that has taken a decent hit from the interest rate cuts by the Fed. I like Prudential in particular.
I don't see people mentioning this
but I really like how Jaspreet is improving the quality of his videos
wasting less time getting to the point, reducing the "please subscribe" segments, getting less click-baity (though still a little click-baity), decreasing the number of "BELOW!" jokes (gets real annoying when he overplays that joke)
Love the video! Life insurance is not just for death benefits. Its the cornerstone of your investment strategy
😂😂😂😂 stupid
@@leosuarezjr8479 IQ 😆
When the market averages 10% that does not mean u can use a calculator and put 10% a year and be accurate. Because when 100k drops by 10% then goes up 10% it does not go back to 100k. Those drops make a difference and interrupt the compounding. Also there’s taxes.
Everyone realized the importance of life insurance in 2020. Your life insurance is not your investment.
The rich stays rich by spending like the poor and never fails to keep investing then the poor stays poor spending the rich but not yet investing
Nice words ma'am
You're right ma'am, Thanks for introducing me to Mr James Albert
People are scared of investing because of the high rate of unprofessional traders in the business
There are unprofessional traders but real brokers are out there for investors
My first investment with Mr James gave me profit of over $24,000 Us dollars
lol every dislike is every life insurance company that didnt like what you said 😂
I think if it's structured right, it can return a great deal. You can use the cash value and loan value to buy assets. Even borrowing that wont affect your credit. It can be a part of a great investment portfolio
"Borrowing" against your own money. Scam.
@@astroman30 Why would you assume it is a scam? Educate yourself on Cash Value life Insurrance.
@@annab5090 Princess, what part of “The insurance company keeps your cash value” do you not understand?
Agreed. A loan from a well structured cash value living benefits life insurance (IUL) is TAX FREE and you have the option of paying your loan down or not....and if you DO decide to pay down, you are 'paying yourself first' by paying the interest TO yourself instead of making a bank/someone else richer, thereby making yourself your OWN bank.... and by using that same loan to buy wealth generating assets---you are making your money work x3-4 times harder for you. If you want more info on this, I can get you in touch with my licensed agent who helped me through understand this process. Blessings to all!
Do a video on Indexed Universal Life Insurance! Pls
garbage
Great show!! $700/month in stock market.. I can beat 10% per year.. I trust myself more than insurance co.. But Good point! Thanks
10%!?
Jaspreet, You did not talk about Indexed Universal Life policies where you can build cash value and can generate stream of tax free income during retirement. Beneficiary will get both cash value and base coverage and it can cover you for 120 years. You only talked about term insurance which is basically to cover the risk.
Garbage....you don't need an insurance company investing your money in the stock market while they charge ridiculous high fees/commissions.
@@astroman30 How about the fact that the gains are tax free? And even if you do end up borrowing against your cash value, the policy grows based on the pre borrowed amount because the Insurrance company assumes you will put it back into the policy? It just needs to be structured properly;
@@annab5090 I’ll offer you the same cash value scenario: Give me your money and I’ll be happy to let you BORROW (up to 90%) against it while I charge you 6% interest to BORROW against your own money. Sound like a good plan to you? By all means, send me your money.
Life insurance is cool if you use it the right way but im going with crowdfunding real estate and bitcoin
You missed the point entirely 😂 that's not life insurance
Agree 👍 miss the point haha 😂
Crowdfunding Real Estate?
Chris it sunrise or another platform
@@Marketcrasher I've never heard of it, what is it?
I wholeheartedly agree. Life insurance is not an investment Point Blank.
There's a few things that you didn't consider though.
1) the life expectancy of a black man in the United States is totally different
Also with whole life insurance there are two aspects that you didn't mention
2) when you invest amount that you used in your example every month after 5 years you stop paying into it and it pays for itself
3) you can borrow against the cast value in your life insurance for a low interest rate. Why you do this you are still earning dividends from the Mutual life insurance company. So you're not really the best in that same amount for 48 years just to get a million bucks
I looked up the word Investment. an act of devoting time, effort, or energy to a particular undertaking with the expectation of a worthwhile result.
Be wary of an industry where the person talking to you is a “salesman”. Some products are most profitable for the insurer.
like literally every single insurance EVER
Very true
But Casey, every industry has “salesmen or saleswomen” in what other way would anyone transact and find products to match the consumer? And I’m pretty sure most products are sold with intention of profit for any business. I just don’t want to make talking to a “salesman” taboo, these type of people are usually the ones turning the economy!
I’ve been in insurance for 16 years and own my own successful agency. I sell cheap term all day, and talk people out of expensive whole life, even when it means much lower commissions for me. Can’t stand “salespeople” that don’t put their clients first.
@@ryanweston9677 so Term life is better than whole life?
R. Nelson Nash - _Become Your Own Banker_
Garrett Gunderson - _What Would the Rockefellers Do_ Neither are insurance salesmen, although Gunderson was one back in the 1990s. Read them and address their points, please! You've missed the point again!
Whole life insurance is not an investment, even to them, but after a few costly years, it far surpasses a savings account, and you can approve your own loans, and make dividends from the interest you pay, as well as dividends from all your cash value that doesn't drop unless you die without paying the loan. It's also a safe shelter for weathering market crisis, but doesn't stop you from either borrowing against or withdrawing your cash value to invest when opportunity knocks.
Sadly, this is something that Jaspreet is not willing to address. R. Nelson Nash and Garrett Gunderson present how a whole life insurance policy when properly structured is actually a great foundation for financial independence. I would also recommend reading The Case for IBC by R. Nelson Nash, L. Carlos Lara, and Robert P. Murphy PhD.
What are the attributes of Dividend Paying Whole Life Insurance especially when designed with High Cash Value in the beginning:
1) Consistent Rate of Return
2) Conservative (Safe)
3) Liquid
4) Guaranteed
5) Tax Benefits (Tax Free)
6) No Market Volatility
7) Yields Income Besides Capital Gain
8) Creditor Protected
9) Inflation Protected
10) Control
11) Transferable
12) Easy to Manage
13) No Hidden Fees or Penalties
14) Legal
15) Private
Also to all the buy term and invest the difference folks. You do realize that when you self-insurance that you prevent that money from ever being used. In other words, if I have a term life insurance policy of $2M and I decide to get rid of it because I accumulated $2M of stocks, real estate, etc. That means that the entire $2M of wealth that I accumulated is now at risk once I die. That $2M can never be used because if I die, the people who depend on me will only have that $2M of accumulated wealth to live off, since I don't have a policy to transfer the risk of me no longer being around to provide. As Garrett Gunderson says in Sacred Cows, " When it comes to risk, we have just two options: we can either retain it or transfer it."
That's correct I just opened up my own bank (mutual whole life insurance)
@@jadenv3068 yes! That would make my day!
@astroman30 Wonder where this guy is? He called out every other person here except this guy. 😂
Once I realized there is no one on this planet who relies on me, I canceled my life insurance.
thats good
I love that I have 4 policies that add up to $1M to leave to my kids if I pass away too early. It gives me piece of mind. I’m also building cash value in it, that I can pull out for a nest egg, an emergency, loan myself money to buy a car or travel to Paris. I dont have to pay taxes on any of the returns. It also doesn’t have a bottom, it doesn’t go below zero, and averages about 8% per year return. Also I have living benefits in one policy, so if I have a critical illness or accident, I can draw on the policy to receive a large monthly sum every month.
Congratulations on giving away your money to a trash value policy with only an option to borrow against your own money.
@@astroman30 thank you!!!!!! 👏👏👏👏👏👏👏👏
@@tracyspacey6071 Feel free to give me your money and i'll be happy to let you borrow against it.
@@astroman30 awesome!!!!!! 👏👏👏👏👏👏👏👏👏👏 on top of my $20K cash value, can you also give me $1M when I die and $7KUS per month if I have a critical illness?
@@tracyspacey6071 Don't deflect it on the death benefit. The discussion is cash value of which I'm offering to you the same scenario since you love it so much.
I LOVE THIS. Cleared up all my confusions
I agree, term life is the way to go for the majority of people.
Can you expand on why you this that? Because other then the death benefit payout, it doesn't offer anything else. And if you don't die yo get nothing.
It gets pricy as time goes on. I'm going to lower my beneficiary amount because it will be 2000 monthly by the end of policy .
If you are in control of your money and know how to grow your money only buy Term Insurance. It's absolutely necessary to have Term Insurance if you have a family, it is so cheap.
You know a lot about investing but you clearly have no idea how you can use life insurance a vehicle to grow your money.
I'm listening
jeeylo smart Universal Life Insurances also work as saving accounts, but they need time to grow as in every worthwhile investment, they invest in the market but protect and lock your gains, after 60 you can take them out or you can borrow money before and it is tax free!!!
jeeylo smart Indexed Universal Life Insurance is a type of permanent life insurance. It helps you accumulate a savings accounts. It gives you the potencial gain of market, this is know as the CAP and it gives the protection or the floor.... what does this mean? When the stock market does bad you don’t lose money!
Zarmar1591 you got sucked into selling IUL’s through an MLM / Pyramid scheme didn’t you? 😂
Zarmar1591 your simplistic explanation is leaving out a LOT of important information about IUL’s and it’s irresponsible and scammy
There is a reason that TWO different words exist in English--one word is "investments" and the other word is "insurance". They are two different things & they will *never* be the same thing. You're welcome.
Wow!!!! Thanks thanks for the explanation!!!! This is amazing and very good help in understanding all this best explanation I’ve found
I love the fact that you specified that this is not a get rich fast scheme I don't know who needs too heat this your go sto saving money.invest some part of it you really want
It always for crypto investors to venture into trading because it's only by trading crypto investors can survive
Apparently that's true I agree but it can also be disastrous for newbies or any one who doesn't ad here to a well throughout strategy and over all a perfesssional broker
My advice to anyone going into crypto currency trading is to get yourself attached to a broker who will make good returns on investment
In a few years to come people will be kicking themselves in regrets if they miss this opportunity of buying in the crypto currency market
How about IUL's?
Too keep it simple, imagine investing yourself with a broker or on your own into index funds. So you range from .26% and up from there depending on the company for how much you invest. Again basic, there is more to this.
Now with an IUL you pay X Dollars to this policy.
First thing out are fees to the company
Second is premium
Third goes into retirement
Then you can loan against your own money that is now the companies money.
You pay 5k to get worse performance and you can lose the investment anyway to the company.
Buy term and invest, if YOU are consistent, is always better. The downfall is that the WL and UL agents are banking on you not having trust in yourself and your money management ability. (Which most people, including myself fall or fell into.)
I would love to work with you more but if not there are plenty of great videos out there and if you want the truth about each type, look up videos of WL only agents talk about UL and vice versa. It is amazing to watch them torch each other.
Thank you so much brother
I really needed this info. Keep it up♥️
You forgot to mention, that when you borrow from the cash value of your whole life insurance account you pay 5% interest on YOUR OWN DAMN SAVED MONEY. Rather invest and sell stocks when needed, or just collect the dividends and hold off on reinvesting during hard times.
Who does the interest go to if it’s your own saved money?
@@mattv.4089 You're not borrowing your own money when you take a loan against your policy. The loan comes from the insurance company, which uses your cash value as collateral. This allows your money to compound undisturbed since it's not your money being lent to you.
@@multimeter2859 In other words, you can only BORROW (up to 90%) of the money YOU put in. Yep, sounds like my money to me that I just gave away.
@@mattv.4089 ?
Only buy term life insurance
In 2020? YES! 😬
Index linked universal life policy gives money back while you are alive, tax free. if you are going to be in higher tax bracket or think that interest rates would be high when you retire. life insurance as investment might make sense.
IULs are terrible policies with their high fees.
IUL fees are outrageous
That's a lot of words to not just describe it as an hedge...
Thank you for the video this answer my question on how to invest for my kids.
Can you discuss about index universal life insurance?
He won't, because he's a BTID Broker. He's too biased towards pushing term insurance so he can make more money off his affiliates.
@@15KHPCLUB IUL = Scam.
@@astroman30 How so?
@@15KHPCLUB The "fees" associated with IUL and other variable life insurances are outrageously high. You buy life insurance along with investing in index funds through an insurance agent. Hence, why do you need a middle man (insurance agent) to invest in index funds? Plus, when you die, the insurance company KEEPS all the cash value in your policy only paying out the death benefit to your beneficiaries. Scam.
@@astroman30 Wow that's crazy, where'd you read about this?
I feel like your my mentor thank you sire
I put all my money in my life insurance policy. Then I borrow my money tax free that grew with compound interest to invest in real estate and businesses. All while never depleting my cash in my policy because of arbitrage that pays off what I borrowed.
Congratulations on giving away your money with only an option to borrow.
@@astroman30you can borrow or take directly money out. Borrowing is used mostly because of non direct recognition, which keeps your policy growing uninterrupted
I have an life insurance of 100k, once i have a 100k Networth i will cancel the life insurance.
Love the video ❤
I have a question: which is a better investment the Roth IRA or term life insurance?
Insurance should never be looked at as an "investment." It's a risk management purchase much like homeowner's insurance. That being said, term insurance is the best life insurance to purchase. Roth IRAs are great investments.
Thanks Jaspreet this was very helpful 👌
Life insurance is not about death. You can use life insurance to prepare for your kids education or retirement and you get a better investment
Nah......the insurance company KEEPS the cash value.
Thank you for sharing this!!!! It’s SPOT on!
Whole life was never meant to be an investment.
It's complete garbage.
Show me an investment vehicle that gives me liquidity, tax free growth, protection on my principal you lose 0 in a market crash and that gives me predictable rates of return? O and when I die doubles in value.
That sounds alot like whole life insurance. 🤔
Exactly
And Long Time Care
Robert N Index Universal Life. “IUL”
@@kerynl.sanchez9891 And long time care! Thank you Keryn.
Thanks for this video I was talking to a insurance company about term life insurance but they didn’t give a lot of details to a term life insurance I appreciate the info which allows me to make a good decision on it I’ve recently subscribed to your channel and it is great keep up the great work!
I pay for my insurance once per year. Sure it's a big amount but it's actually cheaper this way because if you pay month to month they charge an installment fee.
I learn that the hard way with Rental Insurance which is why when I renew in August I’m paying in full.
There's a lot more to life insurance IF it's structed correctly. I've seen in multiple case studies that life insurance is a better and more suitable product. I have seen case studies where individuals put money into a particular Life Insurance product to fund a child's college funds and it at the same time helped with an individuals retirement planning. There is more to it than that but I think this video doesn't help the consumer understand the benefits behind life insurance products.
There are no benefits to WL insurance. Need to fund a child's education? Put the money in a 529 plan instead of cash value insurance. Hence, ANY cash value insurance is garbage. Next.
@@astroman30 yea that’s not true at all. There are many benefits to WL. Don’t substitute it for an investment you want market growth on
@@dylanabel205 Name those "benefits."
@@astroman30 well for 1 i can pull my money when i chose not if my child goes to college or school with the 529. I have some money for my kids in a 529 and even when they explained it to me it didn't sound right. The fact that i can't get my money back or it needs to be used to for education is mond blowing. Id rather have control of my money than be handcuffed on how i can use it.
@@S_M808 "Id rather have control of my money." So, what part of "The insurance company KEEPS your cash value" do you not understand?
Your funny and you explain things very well. Thank you
So whole life insurance with cash value options allow you to withdraw your cash value at any time with no penalties. Can't do that from a 401k or IRA. Also this money is 100% tax free because it is post tax money. The other advantage with it is you don't have to pay the money back and you still make the guarantees on the money you took out - can't do that with 401k either. Also after a set period of time you don't pay any payments anymore. Mine are setup for 10 years of max payments and then 10 years of just premiums and then no money is paid ever again. I did this with my newborn grand daughter. It is a great way to pass on wealth without taxes. Also doesn't count against her for grants if she decides to go to college in 17 years. 529 plans are taxable if not used for school. UGMA / UTMA accounts are taxed and have zero control of them once the kid turns 18 or 21 (state depending) therefore if the kid is rebelling at 18 they could cash out the money and blow it. With life insurance you can keep the policy owner in your name until the kid is responsible. Maxing out 401k (can't do ROTH) Pretax bucket / this ^^^^ is how I am investing in my post tax bucket. Then with social security and other side income that i am building I have a three legged stool to help make sure I minimize my taxes in retirement. It is a great strategy but not all Whole Life policies work the same and that is the big kicker.
This video didn’t go into a detail about IUL that gains equity in the cash value with high rates of return you can see in a variable market WITH an additional benefit that protects against the market which are called floors. Lack of information but still this video is great for a basic understanding on a few insurance policies👍🏼
IULs are garbage with their high fees/commissions and capped gains. Hence, why do you need an insurance company to invest in the stock market?
@@astroman30 well you dont lose money when the stock market goes down as it currently is. I work with alott of people that lost money in their 401k IRA and mutual funds. 6 figures worth of loses and they are in retirement age or well passed retirement age
@@S_M808 You don't "lose" money until you take it out. In fact, I'd rather "lose" part of my money in my 401k than give it all away to a trash value policy. Try harder.
Life insurance sales people are like politicians you have to be very selective about the things you choose to believe that come out their mouth
Well, if someone advertises a product that he or she actually use then that is a very positive sign that the concept is legit and at least worth a look.
Julio Hernandez not true. Most people are self serving. Someone selling whole life hard indicates they benefit from it more.
What is you opinion of using mutual whole life that pays a dividend as part of a strategy to have some money more liquid through policy loans? This is not a retirement investment but a means of storing assets for medium term use.
The ROR on WL policies (after fees/commissions) is less than 2%.......Garbage.
@@astroman30 Not true if it is designed for maximum cash accumulation.
@@TimothyTitusDaugett Doesn’t matter if it’s a 90/10 or 60/40 split, the ROI is the same. Lest we not forget the 5% fee for adding a PUA rider. Do your homework
@@astroman30 no, the return on investment is not the same. When you factor in taxes for other investments and the tax free accumulation and tax free access to cash value that is available within properly designed whole life, and it's ability to be used whenever and however we want without penalties from the government, we win on ROI. On top of that, we have no threat of unforseen short-term or long-term losses.
And even further, we have the ability to access the value of our cash accumulations within the policy up to 100% through policy loans to be used for investment in other assets, real estate, stocks or anything else... while keeping the full amount of our actual cash value within the policy as it continues to grow with compounding interest at the same time.
All of these features and the access to these kinds of strategies more than make up for the costs associated with whole life insurance, especially when properly designed.
@@TimothyTitusDaugett Either you’re lying or stupid: You can NOT borrow 100% of your CV. The most I’ve seen is through NYL at 90%. The true ROI (after fees/commissions) on CV is about 1.5%….garbage. In fact, Consumer Reports did an article about the TRUE interest in an article they released. Google is your friend. “Tax Free?” Yipppee…any loan is tax free. Nimrod
Is it possible to get a 40 year term insurance at the age of 60?? If then I'm all in, at least my money will not go down the drain.
Currently I have an insurance agent pointing me in the direction of a lump sum. 25k up front and whole life paid until I d.i.e. I’m wondering if this is smart and trying to do my research because as a comment I saw do not put money into what you don’t understand. Thank you
Life insurance pays you when you are dead, think about it. Unless you have someone who must depend on you providing for them - there is no need for life insurance.
That is call “term” ULI is an investment, tax free and you don’t need to die to claim it!
Unless you have living benefits , or it’s helping you with retirement funds!
If the 100,000$ market goes down by 10% you have 90 k if it goes back up 10% you have 99 k. So the average market going up should be cross examined by how far it first dropped. I here you lose zero% in insurance. Plus less fees, plus no tax.
Do they have whole life where you can get income from whole life?
Great video and inspiration for my next video ❤️ ❤️
This is a good video? but I could invest,without any insurance agent? because I dont know how to invest to bonds and stocks.
so basically you borrow against the life insurance and invest that? what about homeowners policy, can you do borrow against it?
No....
Jaspreet you are awesome man, thanks for the education, I was feeling bad myself coz I did not get life insurance at 20 years old since it is cheaper when younger but now I can stop beating myself up for not getting it lol
Ask the person who is selling you insurance this question:
Do you make more commission selling whole life insurance or do you make more money selling term insurance?
Great Video. Thank you for posting.
Thank YOU! I almost fell for the whole IUL game. I'm glad i didn't sign the paperwork and become a pawn for these insurance companies.
What about paying taxes for your investment? You did not talk about IULs.
IULs are garbage with their high fees/commissions and capped gains.
Buy term. I don’t go to my car insurance company and ask them to not only cover for me for the car but also invest my money. The car insurance is for the car and life insurance is for my life. Simple. Anyone who says otherwise sells insurance because they more money with whole life.
Beautifully explained. Bravo.
Thank you so much for this information.
We have a million dollar each 10 year term life insurance policy. (40, 37) costs $100 a month. We are at a critical time for our family where our income is high and we are moving out of state. If something happened to one of us the other would be in a tough place.
Our goal is to be debt free and get $1 million saved and invested before the term life is up.
Welll then I’m paying too much . I only have 367.000 term policy and I’m paying 73.00 month now. The rate keeps increasing.
thank u
Ah all of this is so stressful, I don't know. I read books, I listened to people who know, But I still don't know what to do. I saved money, I invested it, but that's not much still and I now signed up for life insurance. I also want to at least live happily, traveling wherever I want. I hate my job, I want to be financially free, so I read and listened but I am still somehow here and not getting it. And keep feeling demotivated and down. I just want to give up this all and go to a temple in the mountains and live there. But my mom begs me not to. Can't leave her. I have a good life what others maybe wish for, a job and money to pay food, clothes, utilities and a rent. But why am I not grateful and why do I want to quit working and just do nothing? I just want to be happy and free. But maybe I am not smart enough to understand this all.
Do you have video on Life Insurance Retirement Plan?
you might need to make a new video on whole life insurance using the Infinite Banking Concept.. do you have any thoughts on that?
Jaspreet bai, I buy a whole life insurance policy, I paid more then 13000$ last three years and value of my policy is only 3000$. I lost my money on that policy. Should I stop that payment or what should i do. Please can you tell me.
Stop paying.....get your money out. If you don't get your money out, they will keep it.
Stocks on average returned 6% is you go back to the 1800s, its on par with real estate
Will you do a video on crowdfunding, fundrise, start engine. Ect ?
What about Indexed Universal Life [IUL]? If managed for maximum cash balance it avoids market dips and makes all gains tax free, plus it is life insurance that your heirs will never have to pay taxes on.
Another benefit? Being able to borrow against it for any reason and to repay or not repay as needed.
All other assets end up Taxed when they pass to your heirs, so is this a legitimate type of money management?
Will never outperform the market and your COI also goes up every year and there are caps on proformace to compensate for the downside protection. If you don't overfund that policy it will lapse because your COI will canableize your cash value
What about variable life insurance where you can choose the indexes to invest your money in?
VULs and any other universal life policy are garbage....worse than whole life. Why? The cash value gets eaten up by all the fees/commissions leaving out of pocket costs to cover the ever increasing A.R.T. (Annual Renewable Term.)
How about a properly structured and funded cash value life insurance set to the TEFRA and DEFRA guidelines? I’ve ran SEVERAL simulations and it seems like after paying taxes on the gains Life Insurance tends to be a bit beyyrr
Scam. The insurance company still keeps the cash value.
@@astroman30 might want to brush up on the product before making misstatements. The life insurance does NOT in fact keep
The cash value. If it’s properly structured and max funded you will get both your cash and the original net amount at risk to the life insurance company, once you’re done fully funding it at that point you can elect to allow you cash value to become the death benefit and lowering the net amount at risk to the insurance company effectively lowering the costs of insurance, allowing you to build more cash value.
@@Bryan-om3wq So, you're saying that you get BOTH the cash value and death benefit?
@@astroman30 if it’s structured properly, yes. If your original death benefit is 250k and you have 500k cash value, your family receives 750k.
@@Bryan-om3wq By all means, name your provider that GUARANTEES the payout of DB and CV in a WL policy. I'll be sure to screen shoot your comments and email them so you can get the commission.