Life Insurance?:Term Life vs Whole Life

[Bad-Karma]

Term.

The need for life insurance is not a permanent need. If you manage your money well, you will not need it later in life. By the time my term insurance expires, I will be self-insured through savings, paying off house, etc.

The cost difference and crappy returns of whole life make it an easy decision.
Take the difference that whole life would have cost you, and invest it, and you will have more than the "cash value" will accrue over the same period of time. Rarely will you find anyone who recommends whole life who is not selling it.

No offense but this is the poster child comment for someone who just has an opinion and not all the facts.

[wisco-hunter]

I sold life insurance for a while and they told us to sell whole life to family and friends and try to push term to everyone else.

What company? They should be shut down, every situation is different for different insurances, this worries me with life insurance brokers, these shouldn't be the guildlines

[flywise]

No offense but this is the poster child comment for someone who just has an opinion and not all the facts.

And you know this how?
What makes you think you know whether or not he has facts

[Bad-Karma]

And you know this how?
What makes you think you know whether or not he has facts

He says the need for life insurance is not perm. For who? him? someone else? What about a guy with a 10 million dollar ranch that dies. You think that guy may have needed life insurance so that his kids have money to pay the taxes so they can keep the ranch in the family? I think so!!!

[FamousAmos]

Friends of mine who are exponentially wealthier than I am have life insurance. They have a long, long, long history of making excellent financial decisions. They are my age or approaching my age. I find comfort in their example. I, too, will always have life insurance. My universal life policy will provide me with a significant chunk of change in a few years, if I live, and will provide my wife and heirs a significant chunk of change whenever I die.

[wisco-hunter]

My biggest advice for you would be make sure you are dealing with a "certified financial planner" NOT a financial adviser. I was certified back in the day and there is a BIG difference. Anyone and I do mean anyone off the street can legally label themselves a financial advisor. A certified financial planner (weather good or bad) at the very least has the information and education to be making good decisions with your money. I'm not saying all financial advisors are bad, but it's your hard earned money I would try your hardest to find someone qualified. There has been a real push over the past 15 years to get people off the streets selling things they shouldn't probably be selling and giving advice they shouldn't be giving. 10 years back primerica was the worst, they would hold free classes for everyday people off the street and if you could pass a weak test (I took it, but not for them) you were licensed to sell life insurance and were considered a financial "advisor". If you sold from them not only would you get a cut of the policy but the person that recruited you got a cut and the person that recruited them. Lot's of sad things going on to make a buck in today's world. The two reasons I left the industry is 1) I realized half of the people didn't know what they were doing and the half that did would sell for the commission and not for the client 2) I couldn't carry the burden of investing peoples life savings and putting them on a plan to retirement when I had no actual control over the market. I knew if the market crashed and I sold the funds or whatever, I couldn't live with knowing I put people there, even though it was out of my control. I made a ton of money and business was good, but when you get to see the insides of the industry it can make you sick...I quit and became a carpenter for half the pay, but loved the job!!!

[Bad-Karma]

My biggest advice for you would be make sure you are dealing with a "certified financial planner" NOT a financial adviser. I was certified back in the day and there is a BIG difference. Anyone and I do mean anyone off the street can legally label themselves a financial advisor. A certified financial planner (weather good or bad) at the very least has the information and education to be making good decisions with your money. I'm not saying all financial advisors are bad, but it's your hard earned money I would try your hardest to find someone qualified. There has been a real push over the past 15 years to get people off the streets selling things they shouldn't probably be selling and giving advice they shouldn't be giving. 10 years back primerica was the worst, they would hold free classes for everyday people off the street and if you could pass a weak test (I took it, but not for them) you were licensed to sell life insurance and were considered a financial "advisor". If you sold from them not only would you get a cut of the policy but the person that recruited you got a cut and the person that recruited them. Lot's of sad things going on to make a buck in today's world. The two reasons I left the industry is 1) I realized half of the people didn't know what they were doing and the half that did would sell for the commission and not for the client 2) I couldn't carry the burden of investing peoples life savings and putting them on a plan to retirement when I had no actual control over the market. I knew if the market crashed and I sold the funds or whatever, I couldn't live with knowing I put people there, even though it was out of my control. I made a ton of money and business was good, but when you get to see the insides of the industry it can make you sick...I quit and became a carpenter for half the pay, but loved the job!!!

Let me do you all a very big favor and you can thank me at some point during the future. This post is pretty accurate. However, It does NOT take a CFP certification to be and advisor. But I am going to tell you how you can all find out if someone is legally a industry professional.

Google the words "broker check" this will direct you to the SEC web site. You can enter the persons name or the firm that they say they are with. You can see their work history and what securities lic. they have. you can see how much money they manage and any disciplinary actions. If they do not hold a securities lic and or not an attorney or accountant they have no business giving detailed financial advice. It is known as unregistered advice.

[Mudslinger]

Just how many people anywhere have the discipline to invest the difference between term and whole life policies? Probably very, very few.
With my whole life, someone, hopefully my wife will get the benefit.
Those that say just invest in mutual funds with the difference because it will not cost you anything have no clue.

[flywise]

Just how many people anywhere have the discipline to invest the difference between term and whole life policies? Probably very, very few.
With my whole life, someone, hopefully my wife will get the benefit.
Those that say just invest in mutual funds with the difference because it will not cost you anything have no clue.

If a person has the dicipline to invest in a monthly insurance payment why would they also not have the dicipline to invest in a mutual fund?

[rubydog]

If a person has the dicipline to invest in a monthly insurance payment why would they also not have the dicipline to invest in a mutual fund?

Kirby I think what he is trying to say is:

Most people lack the God given talent to buy term and wisely invest the difference.

[flywise]

Kirby I think what he is trying to say is:

Most people lack the God given talent to buy term and wisely invest the difference.

[Bad-Karma]

If a person has the dicipline to invest in a monthly insurance payment why would they also not have the dicipline to invest in a mutual fund?

Flywise: you have made two comments now that have not given any facts or example of a fact. You asked me a question and I responded and instead of acknowledging my response with anything factual or positive you choose crickets and went on to question someone else. perhaps you should seek one of the broad head threads or something about public hunting. Don't get offended. Everyone is only looking what would best serve them with facts.

[Bill]

First figure out how much life insurance you really need. The purpose is to replace you as a money-making machine. If you need to replace $50k income per year (for example only), then with a 5% rate of return on money, you need $2.5 million in an account somewhere to generate $50k per year forever. This assumes your family does not touch the principal amount of $2.5 million.

The question of whole life vs. term is: can you afford a $2.5 million dollar whole life policy?

Second, if you have cash value built up inside a whole life policy (say $50k) and a $1 million face value on the policy, how much does you family get? Generally $1 million. What happens to the $50k? Ask the insurance agent.

You can figure out my opinion from the above, but you need to decide for yourself.

[flywise]

Flywise: you have made two comments now that have not given any facts or example of a fact. You asked me a question and I responded and instead of acknowledging my response with anything factual or positive you choose crickets and went on to question someone else. perhaps you should seek one of the broad head threads or something about public hunting. Don't get offended. Everyone is only looking what would best serve them with facts.

I didnt make any comments, so maybe you should go to a BH thread or better yet, learn to comprehend english.
I asked two questions, hence...... The ?????
And there are way better way to secure that 10m ranch for the future than an insurance policy

[Mudslinger]

If a person has the dicipline to invest in a monthly insurance payment why would they also not have the dicipline to invest in a mutual fund?

Paying any bill is a must do fact of life, investing is not, just saying.

But i do understand where you are coming from, but i again say very few people do invest the difference