Be careful buying life insurance for any reason other than pure life insurance.

Dave is right. But some people want to keep buying $500K of life insurance, even when they don't need it. Stupid. Life insurance companies MAKE money, not lose money. As soon as you don't need it, stop buying it.

I can't seem to find any information about iul? sales reps swear up and fown about it. Ramsey or susy Orman don't seem to adress it

thanks for the info i just learned a lot about life insurance.

Instead of listening to him.. why not follow what the rich do.. Would you like to see what the rich do. http://pfds.opensecrets.org/N00000019_2015_Pres_A.pdf The clintons have 5 whole life policies (page 4)… Why would the rich get different advice than the poor…. They also have 1 index fund and bonds… Dave does not like bonds either… Hmm Maybe the rich do things we are told not to do.

Sounds reasonable.

when i was pregnant with my first child my husband and i purchase a 25 yr term life. it was designed to replace his income if he kicked the bucket and would allow me to remain a stay at home mom for a while before having to go back to work. Just like we purchase enough to replace my service as a "child care giver" if i kicked the bucket while the kids were still young. that time has since ran out and we only got 23 yrs out of the policy bc i never increase my payments i just used the cash value in the account to pay the difference that my premium wasn't covering. i had piece of mind for 23 yrs. would've been able to live a comfortable live had something happened to my husband. now we're in a jam bc he's almost 50 and a smoker. hello his new policy would cost 4x the amount we're paying now.. So I'm considering another route at this time in our life. Investing and not in life insurance. Our mortgage is paid, we only have standard living expenses, 401k investments, and a mutual fund. Both of our children are in college and they have student loans. However I do have live insurance on them incase something happens i can pay their balance off. Honesty you can't make a full life plan, you can try but the best thing to do is try to invest in a home and get the largest expense knock out ASAP. We also don't buy cars every 2 years. We keep them maintenance and drive them for 7-10 yrs to get our money out of them and we never have 2 car notes at one time. their are a lot of ways to be smart about money. you have to save even if it's 25$ a paycheck. when my husband would get a raise we would always try to save it too. a budget is a good place to start but sticking to it is more important. you can make a budget but not sticking to your guns is just setting you up for failure. good luck to planning your future .everyone should attempt some sort of plan.

COPY & PASTE

http://www.sellinsurance.online

INTO YOUR ADDRESS BAR

it's rarely either or when it comes to term and permanent insurance. The most important issue is having the right amount, if you have excess income than you have the "luxury" of buying the right type for long term planning.

Listen, there are crap life insurance companies out there and then there are ones that pay great dividends every year. I have WL policies that based up conservative estimates average a internal rate of return of 5-5.5% on the cash value accumulations. Comparing that to much riskier bond funds 4-5% and stock funds 7-8%. It looks pretty attractive to me.

Term insurance only is for young people, poor people or people in debt that need every available dollar to go toward paying off debt.

If you're successful, you have more options

Too many people make too many things complicated.  Dave is almost entirely correct on this one.  There are a minimal number of whole life instruments that could work for some people.  But, truth be told, for the great majority of people, they would be BETTER OFF acquiring a comparable value of term life and investing the difference.  If you get a half million in insurance and you are 30 and healthy, you are probably looking at $350/mth on whole and about $30/mth on term (based on a 25year level rate).  At the end of that period, you have about $435K, if you purchased term and invested in a mutural fund @ 10% avg rate (@ 8%, you’d have just over $300K).  If you have whole, you are still paying in order to get the $500K benefit…unless you want the very small cash value.  If you die in the first 25 years, you get the same amount of money under both.  Under term, if you take that $435K and don’t add anything to it, you will have $1.1 million 10 years later (or over $800K under the 8% scenario).  Yes, there are some tax consequences, but those are miniscule…they are non-existent if you use a ROTH IRA.  Also, you choose how much you withdraw…so, a tax accountant can show you how much to take out in order to keep your taxes low….removing $100K/yr hits you with around 20-25% total taxes (you can live off of $75K/yr plus retirement plus soc sec, if that still exists). 
The problem with whole life is that is trying to be an investment vehicle and an insurance at the same time (even though legally, they suck as an investment because they are not allowed to use many types of better investments).  You are better off separating the two.  Life insurance for most people should pay in case a spouse suddenly loses their life and that income must be replaced.  If you also are using investments, then by the time you are 65, you should no longer require “insurance”, in case of death.  Your house should be paid for and you should be debt free, if you managed your finances during your working life.

I think level term insurance is the way to go 100%. I have done so much research in the past month. There are a few companies that "shop" the market in order to find you cheapest level term policy. I went with 1st Option Insurance because they shop more companies than the rest.

Thanks
Bill

You should know that there are at least 6 types of cash value life insurance policies , at least 4 unrelated term plans I can  think of and NO advisors should ever make a blanket statement like 1 type of policy is worse for consumers than others. I have  done this 32 years , always as a broker and frankly and diagnoses over the phone or a radio show is not in the clients best interest. ( Not enough information to make a diagnosis) Term is wonderful for short term business needs or mortgage insurance but not for someone looking at having tax free money when  they get older for estate tax needs or debt liquidation. You cannot….assume that a family will have a home paid off.  And the comment about investing at 10% long term is insane. So lets take opinions and radio hype out of your shows and just help people with sound advice.

Ohhh he's such a PARROT!  No real knowledge to help people from all walks of life. Spews a blanket type of planning as if everyone has the same financial objective, income, family dynamics, etc…I've seen a number of families who planned very well decades ago to be able to leave their grown adult children and grandchildren tens of millions of dollars using Permanent Insurance plans. You will end up middle class still and paying high taxes on those mutual funds he advocates.  SHAM RAMSEY is his name. If you follow his advice you'll end up mediocre at best.

So his advice is to risk letting your term insurance expire with no remaining value while your kid is in the middle of college racking up $300,000 in debt in 2035. That way if something bad were to happen to the primary wage earner the spouse left behind can pay higher taxes on withdraws plus penalties as they burn through their retirement money to cover bills, mortgage, and college.  Also they can go ahead and pick up a second job.  Should be fine.  Honestly, Whole life is not for everyone.  If you are a struggling couple with your first kid trying to make ends meet you are best off with Term.  If you are doing better financially with a higher household income and you want BOTH death benefit and an avenue to grow your money and access it tax free later Whole Life might be a great opportunity for you.  It's irresponsible to make a blanket statement that one financial product is good or bad for everyone.

All insurance is a scam.
It should be illegal. Insurance companies are glorified protection rackets who bully people out of their hard earned money and do everything to evade helping them when they need it most.

Be very cautious.  Dave Ramsey's lips are moving.   Nestled in between snippets of truth are some very real deceptions.  Northwestern Mutual whole life policies are what are commonly called "participating" policies.  A lot of companies sell participating whole life policies.  In simplest terms, when talking about participating policies, the life insurance company takes out money for overhead and claims, sets aside the require amount in reserves for future claims, then sends back a "dividend" to the policy holders.  Dividends are paid yearly, and typically become significant for a new policy holder at the end of the third year.  The premium for the first few years of any policy (term or whole life) is eat up by underwriting costs, medical exams, agent/management commissions, and establishing the initial reserves for the policy; the third year tends to be profitable for the company, and thus the dividends begin to be material (often, there is no first-year dividend at all).  Anyway, once you are two or three years into a dividend paying policy, anyone who tells you that (at that point) you should dump it and buy some other sort of insurance is misguided.  And for someone who claims to be informed about insurance, such advice is fundamentally dishonest.  Ramsey's characterization that he got "ripped off" by Northwestern Mutual is willful disparagement of the truth. 

Also, his fast and loose style with rates of return on investments is quite misleading.  I beg you to find me someone who has actually been invested in mutual funds for the past 20 years AND who can show you an effective return of 12% compounded yearly.  Or even 10%.  He used 10% in this video clip; and often uses the 12% figure on his radio show.  I agree that 'hind-sight" investing can identify a mutual fund investment strategy that would have generated a 12% return over the past 20 years, but that's sort of like placing your bet on the horse race after it has been run.  You will be hard-pressed to find someone who can pull out his actual mutual-fund investment records and show you haw he started with $10,000 in 1995, and that $10,000 turned into $96,463 today (without adding any new money to the account). 

Dave, never addresses the issue of "Future Taxation" on those mutual funds or other investments. While none us know what the tax rate will be, one thing many American's agree with is, taxes will likely be HIGHER in the future. So we must remember when he spouts his projections of whatever amount in mutual funds, you need to factor in "taxation" Term indeed has it's place. There are other types of insurance also that can be used based on the needs and objectives of clients. After all, there is no such thing as a financial cookie cutter method and anyone suggesting that all people need to do the same thing is irresponsible and reckless advice.

He's stupid! When buying whole life insurance, especially VUL, part of the premium goes to insurance cost and part of it goes to investment in mutual funds. What he idn't even consider is the estate tax implications! If the insured dies, and the mutual fund investment is under his name, before his wife would receive the mutual funds, estate tax thereon have to beaid first unlike in VUL insurance where life insurance proceeds are free fromestate taxation, provided that the designation of the beneficiary/ies is/are irrevocable.

This dude is smoking crack. Anyone that does not have whole life on their children when it is cheap is doing them a disservice. Most people do not do what Dave says … And he is. Paid consultant. He got debt free which is admirable but to say whole life is not a good investment is really not a wise decision.

This man will drive you into poverty; listen to him and go broke!!!