Term Life Insurance Better Than Whole Life? / Wealth Labs Podcast with Garrett Gunderson

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DISCLAIMER CONT'D: Garrett Gunderson is not a licensed financial advisor. He is an Entrepreneur, Wealth Strategist, and Author of the New York Times and #1 Wall Street Journal bestselling personal finance book - Killing Sacred Cows: Overcoming the Financial Myths That Are Destroying Your Prosperity. He is not providing you with financial advice in these videos. This video, the topics discussed, and ideas presented are Garrett'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.

Опубликовано:

8 апр 2020

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Комментарии : 138

@stephenlagana2090 3 года назад

the problems here include comparison to the DJIA which is not a common investment vehicle. SP500 much more typical and fees are almost non-existent.

@deweybunch5708 3 года назад

Thank you! Taking my life insurance test Monday and I really want to be able to help people with the best information possible, thank you for sharing! I’m about to order your books now!

@Jas0nJames 4 года назад

As usual, this is great stuff.

@GarrettGundersonTV 4 года назад

Thanks Jason.

@AustinSilverFX 4 года назад

Thank god for this channel. thank you

@GarrettGundersonTV 4 года назад

You bet, glad you enjoy it.

@BeanMediaProductions 3 года назад

This is awesome, and inspiration for a client thank you

@lawrenceaberle1988 4 года назад

Again, Another great show!

@brandongrennan7602 2 года назад

Amazing info!! Can’t wait to research more and grab a whole life insurance policy.

@kimbrough2046 3 года назад

I love the truth concepts calculator. I found out about it when I read “Head I Win Tails You Lose”. Love your content.

@kennethbaker4148 4 года назад

Always great stuff, Read your book "What would the Rockafellers do" and that along with a very informative friend ( insurance agent and IBC advocate) has kept me learning everything I can to make an informed decision. I'm now planning to set up a policy with Ameritas looking at it and following along as we speak!

@GarrettGundersonTV 4 года назад

Awesome. Congrats.

@soniajoshblodgett8973 2 года назад

I think one thing that changes this whole scenario is that In most cash value policies, you do not get the death benefit AND the cash value. Lots of policies are written that way. We see them all the time.

@AndrewLXiong Год назад

Great conversation...thanks for sharing this info

@GarrettGundersonTV Год назад

You are welcome.

@donyemonroe4577 Год назад

Can a person build cash value with term life insurance ??

@GarrettGundersonTV Год назад

Not really. You can add term riders to permanent policies allowing for more money to be allocated to cash value though. Cashflowbanking.gg is a site that can help and you can schedule an appointment too where they can help.

@EvanHerlihy 10 месяцев назад

@@GarrettGundersonTVhow do you sleep at night

@adgaten Год назад

Garrett how do I get whole life

@GarrettGundersonTV Год назад

Swf.gg. They can take care of you.

@smyrnachase9961 3 года назад

does the market return of 5.34% information include dividends?

@itsyourboyyeahmen9895 4 года назад

Good day. I would ask which is better Buy term invest the difference or Variable Unit Link/ whole life insurance? Thanks

@GarrettGundersonTV 4 года назад

WE did a comparison video on this very topic. It really depends on your cash flow. I am either term or overfunded whole life. I am releasing an article on Forbes on why not UL type policies later this month.

@Clarc115 4 года назад

which insurance companies offer the client the most options? Are a paid-up-front policies, with the option to add more money, a benefit to the policy holder?

@GarrettGundersonTV 4 года назад

Check with cashflowbanking.com and they will know.

@rosejones2932 4 года назад

What are the best companies to use to buy whole life insurance? And can you get policies if you are older or have any health issues?

@GarrettGundersonTV 4 года назад

The full list is with cashflowbanking.com but a few I have policies with: Mass Mutual, Penn Mutual, Guardian, One America...

@godhonesttruth487 3 года назад

Northwestern Mutual is a really good company for this too. Any Mutual Life insurance company should do pretty well. But almost more importantly is to find a good agent who knows what he is doing. Make sure your agent knows how to design and structure the contract well and does it in an ethical way, which means they will get less comission than they could. If they are unethical, they will contractually obligate your premium to be paid up earlier at like age 65 (contractually obligate you pay higher premiums) they will make a bigger commission and you lose policy flexibility, than if they do a whole life to age 99/100 with it not paid up, or at least not contractually obligated paid up early. You can always take your policy paid up early at age 65 if the policy has the value to support it. If it is not contractually obligated when it is paid up you have tye flexibility to take the policy paid up whenever you want, so much more flexibility.

@PillarsofBibleTruth777 2 года назад

Why would anyone want a whole life? It would be much wiser to get a fully funded IUL.

@chrisa.9977 2 года назад

Hey Garrett, When you mention cash values in WL, can you use cash values in the same way without dividends? In other words, does the system you talk about still work for non participating WL policy’s? Curious, from a licensed agent.

@jacobreis8208 Год назад

One thing you guys may have forgot to mention or deliberately left out is that money in an investment account and money in a cash value policy are not even close to the same thing. You can withdraw money from your investment account and use it for things like retirement or making large purchases, but if you withdraw from a cash value policy, you are borrowing the money you put in on a loan and owe it back PLUS interest to the insurance company, AND if you were to pass away, the company only pays the death benefit NOT the money in the cash value. Plus, taxes are due if you've put less money into cash value policies than what you pull out if you surrender the cash value life insurance so saying "cash" and "tax-free" is extremely misleading.

@GarrettGundersonTV Год назад

You can withdraw money from cash value. It is not required that you borrow.

@GarrettGundersonTV Год назад

And borrowing avoids tax. Withdraw is FIFO. first in first out. So you would pay tax after getting all the money you contributed back.

@evaprasad8791 4 года назад

Hello, I love to watch your videos, you have great information. Question do you used IUL for this plans? I’m insurance agent and I do cash-flow IUL (using it as a bank from the beginning of the policy) that’s works out great, if structure properly.

@GarrettGundersonTV 4 года назад

I don’t use IUL’s...I don’t sell insurance but I certify insurance agents in the philosophy I teach and license content to them. I like the guarantees on whole life, especially if funded properly. IUL can work, but it is either cash value or death benefit to do it right in the long run.....

@evaprasad8791 4 года назад

Garrett Gunderson thank you for you response, whole life only give you 3-4% retuned that’s why I ask! I love your videos and information. Thank you

@jP-nw7nm 4 года назад

New challenge! Some one who is in there late 20’s making minimum wage and has an emergency funds for 6 months in a money market and investing in a index fund do you go with whole life or what’s aa good move to grow? What about convertible you wrote about? Thanks this is all awesome

@GarrettGundersonTV 4 года назад

Number one thing is about earning more money and increasing your most valuable skillet. Invest in yourself, get some term insurance you can convert when you get a higher income to cash flow banking.

@timothythompson4036 3 года назад

Buy whole life hen you are young and healthy. It is a great investment for the future

@j96rongway43 4 года назад

Since I'm in my 50's and my term insurance rates start going up next year it sounds like I'm screwed. I can't afford the coverage that I need for a death benefit for my family. What do you suggest I do?

@amandathompson9347 3 года назад

America's Life is good.

@marjn1030 3 года назад

Try zander insurance.

@bobby_ewan 4 года назад

Max funded IUL. At age 60, CV $176k, DB $293k. Age 80, CV $1,076,098 DB $1,192,853 Cost of insurance at age 80 is $2,842 for the year (WL guys love to say the COI in the later years is so expensive but they don’t know how to build them correctly with the right carriers).

@GarrettGundersonTV 4 года назад

I have an IUL. You aren’t at that age. You aren’t talking what the costs can be if you use your cash or if the costs go up due to number of deaths.

@GarrettGundersonTV 4 года назад

Do you decrease the death benefit? Choose option 1? I have seen a lot of carriers and some that had 100 percent liquidity in first three years. There are risks, many not disclosed or understood. I’ll do a video on it and welcome a debate too.

@bobby_ewan 4 года назад

Option B (increasing) to option A (level) once you stop funding it. Initial DB is only $116,755 then we’d blend with a separate term policy. Wash loans (fixed) or index loans (participating) are available. Annual reviews are extremely important just like they are for any financial vehicle to make sure performance is working like it’s suppose to. Btw - love your message. I’m part of Wealth Factory and a black belt in BFS with Rick Sapio If you’d like to review this illustration to see the expenses and crediting strategy please provide an email and I’ll send it over. Thank you

@griffinsutich1067 4 года назад

Here's what's wrong with the IUL: IULs miss the dividends of everything in the S&P (which is 1/3 of your returns). Additionally, the insurance companies give the premiums dollars to options traders to hedge on the indexes. As a result, that's why there is a floor and a cap. Furthermore, IULs are illustrated using a linear rate of return (10% or 8% or 6%). The problem: the markets aren't linear. Lastly, the cost of the insurance as you age + the internal expenses make an IUL in inappropriate product compared to how it's illustrated. IULs are bad insurance companies attempting to replicate a traditional, dividend-paying Whole Life from one of the reputable companies in the industry using a different chassis. The cash value in an insurance policy (excluding VUL) should be used as leverage and as a safe money reserve. You cannot compare PLI with the market. It's apple and oranges. Think of the PLI as the bonds and safer dollars to compliment your individual and retirement accounts as well as real estate.

@shannonzittlow8462 2 года назад

The S&P 500 is the standard stock market not the Dow Jones The S&P 500 average is a 10% return over the past 100 years

@nutsallinyomouf Год назад

I was rolling my eyes at that as well; the discussion is very disingenuous in my opinion because he's promoting people stepping into a mine field because like he even admits is that a lot of whole life policies are bad, but he never names a single company or product to back his recommendation.

@cp90_ 2 года назад

I’ve never seen any life policy with a 4.5% ror (without being a mec), especially with inflation about to slam the bond market.

@KH-jf8ps 2 года назад

The cash value will never be paid to you although it's your own money. you can anly borrow it with interest

@philv2529 3 года назад

You can get almost 8% return with AT&t dividends

@Raptor-lq4iz 2 года назад

I think it’s 10%, if u consider inflation then 6.5%. But i wouldn’t use DOW Jones cause most benchmarks are against s&p 500

@chrisrobbins1488 4 года назад

How come you didn’t compare it to the SP500, which is more standard?

@gilly3650 2 года назад

thats what i said...they used the DOW lol

@chrisrobbins1488 4 года назад

Where can I get that software that he used?

@digsinc91 4 года назад

Am I too late??? Just subscribed to your site & became a member last week after hearing you on "Wealth Breakthroughs". My head is finally out of the sand at 50 yrs. old. I positioning myself to real estate invest, and using money/credit to get some cash flow going. Should I start putting money into a Whole Life Insurance Policy as it would require about $600/month just by age w/o comorbidities?

@zhannayarkayeva3414 3 года назад

No, you shouldn't.

@andrewmorris5947 2 года назад

Hi Garrett, thank you for the content. You are one of my RU-vid University Professors and have been providing so much value. Thank you. I am currently licensed in mortgages, life, health, and annuities. Are you still working in financial services, I would love to explore a way I may be able to provide value and work for you or your constituents. Thank you!

@andrewmorris5947 2 года назад

Also wanted to know who I should look to work for as an independent insurance agent if you are not hiring. Thank you.

@ragoff 3 года назад

Are whole life or term life insurance companies insolvent riskfree?

@nicholaslease9009 4 года назад

What are your thoughts on IUL?

@GarrettGundersonTV 4 года назад

I have one personally, but have a lot more whole life. There are a lot of limitations with IUL. I’ll post an article that I am releasing on Forbes this month about it but it is worth a video or even debate on YT.

@fugerep 4 года назад

I think Garret’s answer is important here:”I have one...” If UL (whether it be GUL, IUL, or VUL) were the panacea EF Hutton said it would be originally they wouldn’t keep re-inventing it and we would all own many of these UL type policies. Alas, they don’t produce reliable cash value or protection historically because the cost of insurance gets more pricey each year because the client gets older and one year closer to death. I think the point of getting insurance, any type of insurance, is to “transfer risk”, not assume it. With UL, you are assuming much of the risk. Kim Butler has several great articles you can find via google search on the topic...believe she calls UL a “ticking time bomb”. I’m looking forward to Garret’s thoughts on it.

@RavBarring 4 года назад

Paul Fugère depends. Yes. If the policy is set to increasing for the life of the policy. I have set my policy to go level death benefit at age 55. As I pull loans out, my death benefit goes down. So does cost of insurance.

@fugerep 4 года назад

Ravdeep Barring Just keep your eye on it by getting in force illustrations done. Why do you want your death benefit to go down?

@JasonAThornberry 4 года назад

I have an IUL and it's worth it's weight in gold. It's definitely a well kept secret in terms of building wealth. Perfect way to create no risk income tax free with all of the upside and none of the downside. Not having an IUL is a big reason why broke people who think that their job and their 401K is going to save them and give them the life they want are sadly mistaken and will be in for a rude awakening. That's why they will stay broke and why the rich get richer

@nycste1982 4 года назад

Good video it would be been great if you actually compared your examples to another RU-vid video or website comparison for more backbone. Are all of your examples including compounding interest/dividends ?! Could I discuss my plan briefly with you guys sometime?! Honestly I have spoken to 5+ local real people who work in finance along with 10+ you tubers and no one agrees with you guys. I won’t even mention captain Dave lol.... but I’m a numbers guy... and I decided to go ahead and get a whole life plan I think I am finally on year 3 where my dividends started and I am also paying for 31 years... anyways would greatly appreciate a quick summary privately if possible!’ There are so few positive videos out there on insurance generally speaking... Good video first time finding you after 2+ years of YouTubing finance idk why but glad I did !

@mikes9724 4 года назад

90% of the wealth belongs to 10% of the people. The average US household earns below $60K per year. Most people won't agree.. but I wouldn't want to be financially average/ like most people :(

@nycste1982 4 года назад

Mike S while I agree with everything you said what does that have to do with my post? Just asking not pointing. I’m always trying to find ways to encourage my choice for whole life because as I mentioned almost “no one” promotes it seriously and it’s very hard to find believable people discussing it. Hope my question makes sense.

@mikes9724 4 года назад

@@nycste1982 Yes for sure, sorry just to clarify I was referring to 10+ RU-vidrs who don't agree. Here are some of the key issues overlooked IMO - Many people focus only on the IRR (cash value vs. stock market - which after fees & taxes is very close when looking at net return / actual return not average) , but there is also an external ROR and an eternal ROR. The purpose of WL insurance isn't just about the cash value + death benefit, but you also recover term costs, taxes + fees and can reallocate that at a certain time value money rate. The most overlooked factor is the myth in retirement I won't need life insurance anymore, but oh boy is that when you want it most. The presence of the death benefit gives you a permission slip & flexibility to spend down assets principal + interest in early retirement- providing 2-3X more net cash flow and way less taxes along the way, then enjoy the cash value 2nd phase of wealth distribution + tax-free Death benefit to provide legacy at the end , someday .. but certainly one day!

@nycste1982 4 года назад

Mike S gotcha, yes I’m not like most in the sense of my retirement. I’ll always be in a high tax bracket and thus I look for ways to maximize tax breaks. So having whole life as another option or branch of my savings tree gives me more options (plus emergency loan if ever needed) but when I said something like 10+ you tubers I don’t mean random no name people I mean some of the biggest... and unless they refuse to say they do have the policies none of them seem to have them. And almost no one even google (besides the salesmen’s) promote them lol. But again I am not like most I will always be in the same tax bracket unless I can find a way to have real estate remove that. (Very future goal of mine as well).... spread the wealth as best and safely I can. Maybe we could also discuss this alittle privately too.

@mikes9724 4 года назад

@@nycste1982 Sounds good - let me know best way to connect, happy to chat privately!

@deana4793 4 года назад

What would happen if the US Dollar went to zero? The cash value would be zero, correct?

@PathToProsper209 4 года назад

Respectfully the only thing i have to argue , at a 4.51% counting standard inflation rates that is a 1.51% return .

@GarrettGundersonTV 4 года назад

Yes, but you can access the money and invest in opportunities when they arise and there is a tax benefit, but I agree, this is only part of the equation and not that exciting in and of itself (the benefits enhance it though).

@manasprasher111190 3 года назад

but isnt the value of dollar going down and you are locking the rates of your whole life with the depleting dollar value so you are easily beating inflation IMO

@infinitygroup9629 4 года назад

hi, Garrett, these type of policies exits in all over the world or it's available only in America.

@GarrettGundersonTV 4 года назад

US and Canada mainly.

@infinitygroup9629 4 года назад

@@GarrettGundersonTV, I am from india i can use any whole life insurance policy as credit. Or this is a special type of policies

@michaellinton2676 3 года назад

My mother took out a 20 year term policy for $300,000 and it expires in January.shes gonna be 74 and I'm 43 and we missed the conversation to turn it to whole life when she was 64(it's a long story)so it expires in january.what can we do at this point to salvage anything.I talked to a guy about 2 years ago that said his mother was in the same situation and that her insurance company automatically notified her if she wanted to switch it to whole. To me that doesn't make any sense why would an insurance company do that except to keep the customer maybe. My mother says we might have to just buy a whole new policy and let this one go. Is there anything at all that can be done? I've researched on the internet and they do sell policies to people in that age range but it's not going to be for $300,000. We are really upset that we let this happen. What do you think we should do?

@604Jimmy 3 года назад

You're 43 years. you're an adult. You're not your mother's dependent anymore. Why does she need insurance?

@Buggu3 2 года назад

@@604Jimmy ouch u don’t have to be so mean .. gosh. Some parents want to leave their children with money no matter their age

@604Jimmy 2 года назад

@@Buggu3 You don't leave a legacy by taking out an expensive life insurance plan. You're better off saving the money than giving it to an insurance company that will only pay out half of what you give them. Think about it, insurance companies have to make money somehow.

@Liberallez 2 года назад

Many years ago I worked briefly for A.L. Williams...now I know why Art bailed!!!

@creativityrevealed3659 4 года назад

So I have been following you for awhile now and decided to spend time on your two books. I was once briefly involved with primerica and got indoctrinated that having a whole life insurance policy is like holding hands with the devil. Hoping to relearn some things and help secure my families future better than I have been.

@GarrettGundersonTV 4 года назад

Lots of whole life policies are designed horribly and simply deserve the bad reputation. There are two dozen companies with proper funding though that are great.

@ManosphereCentral 4 года назад

@@GarrettGundersonTV hi, what companies do you suggest sir? I'm 32 and have been going back and forth with this! Your video definitely opened my eyes. Please reply with the 2 dozen companies you recommend :-)

@trevorlarsen3209 3 года назад

@@ManosphereCentral Mass Mutual and Penn Mutual are both great companies. Let me know if you have any other questions I can help with. Cheers.

@HappyCleanersWA 3 года назад

Trevor Larsen is NY life a good place to get cash value life insurance ? That’s what he’s talking about right ?

@danteencinas7020 3 года назад

I was also briefly with Primerica almost 20 years ago, heard "get term & invest the difference". I actually purchased term with them about 7 years ago, but not paying $4200 per year in premiums (like the video says at around 10:15), nor am I investing the difference between $4200 & what I am paying. I am not a young man anymore, and I really like Garrett's enthusiasm & would like to know if Garrett or his people would help me compare apples to apples (or spreadsheets to spreadsheets).

@lionkingmoore 2 года назад

I like seeing how you guys sell whole life. Your term numbers are horribly off.

@rajbeekie7124 4 года назад

Bias is an interesting thing. Yes, Dave is all about Term insurance. On the other side, it seems Garrett and his buddy are all about insurance policies as investment vehicles. Folks, at the end of the day the insurance company does not have a printing press in the basement of their beautiful buildings. The money you get in any universal or any cash value insurance policy comes from the company investing in conservative funds, mortgages, T-bills, etc. Added to the cash value policies there are additional costs. So, regardless of how you slice it, cash value policies cost the company more than term policies. As a result, I have a hard time believing an insurance policy as an investment vehicle is a good thing. This could only be true if they are printing money in the basement or they are ripping off the term life policyholders.

@AnkurSethi108 4 года назад

Whole life include a term policy in them. They just pay for the term policy in a different way from your money. You are absolutely right that they grow money conservatively. You have to remember that cash value is growing tax sheltered. And you can borrow money using your cash value as collateral. You cannot put your IRA as collateral for a loan.

@rajbeekie7124 4 года назад

@@AnkurSethi108 You can also borrow against your 401, 403, etc. Also, with borrowing from the cash value, there are many things that happen. First, the cost of the policy goes up since the company has a greater insurance risk. The difference between the remaining cash value and the death benefit is now larger. In addition, any credit at the end of the year will be only on the remaining cash value.

@AnkurSethi108 4 года назад

@@rajbeekie7124 1. Wrong, 2. Yes you have reduced your death benefit because you have taken out that much cash. 3. Half-right. That is the difference between direct and non-direct recognition. You can alleviate this risk by taking a loan from a third party who give you a loan using your life insurance as collateral. (They would be paid first in the case of your death by the amount of your loan)

@mlidie 4 года назад

Biggest thing many confuse here is that a well structured policy is a great banking system... not investment vehicle. Become your own banker is the main focus. Read the Nelson Nash book first. Change your paradigm thinking. Mutual and non-direct recognition. Our friends and my family all have policies. If you don’t own your finances then someone else will.

@mostmost1 3 года назад

@@rajbeekie7124 my 401K stopped loans a few years ago. When my company was sold I pulled my money out. The rules always change and we have to adjust with them.

@Jtsherrod34 4 года назад

I wasn't going to speak on it...And this IS NOT A SOLICITATION FOR A FUND this is an example...American Growth Fund of America got 8.92% over 1998-2018 $100K from 1998-2018 was over $600K after fees...if you go out 40 yrs good investment will kill Life Insurance that's not philosophy that's numbers...

@GarrettGundersonTV 4 года назад

I’ll get with my team and research this, including the impact of volatility, fees, and actual returns over average returns and do some analysis. If you go out 40 years....really? That seem like speculation at best. You think it will continue to perform? How is it doing right now?

@awesomenaturallucee 4 года назад

What kind of insurance is this?

@604Jimmy 3 года назад

@@GarrettGundersonTV any news on the research you promised? Interested to know 👌🙏

@amandathompson9347 3 года назад

This is what people don't understand about term insurance. It gets very expensive in your 60s. But the need for life insurance is still there. Term insurance is very expensive long term. Permanent insurance is better.

@stevenlong5817 2 года назад

LOL a low cost, broad based index fund like Vanguard's VTSAX Total Stock Market Fund with a .04% expense, went from $27.50 per share in 2000 to $110.00 per share through 2021. Systematic investing from 2000 to the present date, with compound interest reinvesting dividends, blows your whole life plan away. It is down to $100 presently but continued purchases for the next few years will bring much better results than your infinite banking Whole Life plan will. If one needs life insurance for 30 years, Term Life is the best. Stop misleading people with the computer statistician.

@Nightxcloud 2 года назад

All I know is if you do make 8% in market even after tax… welll gg

@tysonrochelle107 3 года назад

The thing always missed in these videos. Is that people can’t afford the benefit they actually need for their family if they die premature due to their poor spending habits.

@Buggu3 2 года назад

Dave Ramsey 🤣

@pandafox12 2 года назад

As usual... Salesmen sell

@brandonspicer2482 3 года назад

Hey geniuses, you forgot the fact that if you are always investing therefore when the market is down you are buying in cheaper. So if the market recovers from -10% to +10% or 0% you are actually making a profit. Read a book, on average for a basic buy and hold common stock (i.e. S&P500) 20-25years returns about 10%

@EvanHerlihy 10 месяцев назад

Can you believe these guys lol

@astroman30 3 года назад

Pay 20 times more in whole life insurance than term insurance because of this magical "cash savings." Thus, the only way to get money out of MY cash savings would be to BORROW against MY OWN MONEY (paying it back plus interest) or cancel the policy paying a huge "surrender" fee. Plus, when I die, the insurance company KEEPS the cash savings or they deduct it from the death benefit.......and you're telling people this is a good deal? Whole life insurance is one of the most expensive policies to buy while paying out high commissions to salesmen. Garbage.

@timothythompson4036 3 года назад

Hey Astroman. Buying term insurance only means you will lose your coverage right when you need it. Whole life is better.

@astroman30 3 года назад

@@timothythompson4036 No it's not. Buying term and investing the difference is waaayyy better. Hence, if I bought term and invest the difference between whole life and term, in 30 years I can build-up a HUGE amount of money not needing life insurance. Why would I put my investment money in a cash value that is kept by the insurance company? Scam.

@604Jimmy 3 года назад

@@timothythompson4036permanent/whole life insurance is like paying insurance for a minivan after the kids have moved out. You're retired, you dont need to pay for a vehicle you dont need anymore. With term life insurance, it ends when your kids and wife are going to be fine when you die. If you die at 75... your kid is 50 years old... they dont need mommy and daddy anymore 👶. They'll just inherit your retirement account... cha ching 🤑

@rabiguerrero 3 года назад

As a great discussion to have and continue the conversation I would mention that it has "living benefits." Sure it varies between companies, but know that it would be used "when you need it most." What are you thoughts? Also, consider how would one get a substantial amount of money to treat cancer terminal illness etc? This tool "whole life." Would allow you to do that on your own money versus having to let's say put a lien on a property that one owns. (getting in debt,) when you're trying to do the exact opposite? Thanks in advance should you find time to reply/read my comment. 👍🏼

@604Jimmy 3 года назад

@@rabiguerrero if you need money, what's wrong with pulling cash from a Roth IRA? Also, one should get critical care and/or LTD insurance?

@timothythompson4036 3 года назад

This proves that the buy term and invest the difference theory is wrong. Only 1% of term contracts pay any death benefit.You drop term insurance in your 50s exactly when you need it. This was a great video.

@astroman30 2 года назад

Yes, but 100% of your cash value is kept by the insurance company.

@cerebralcaustic 4 года назад

So much misinformation. This video is disgusting. "What about the rest of the story?" The rest of the story includes the obscene commissions whole life agents like Gunderson earn from selling those policies. 5-10% commissions are common, with extreme surrender fees the first decade. Somehow those figures aren't included in the calculations. Long term inflation adjusted S&P 500 growth is actually about 7%, the 5% figure is simply wrong. This lie is why people hate whole life agents. Fidelity Contrafund has averaged 12% since inception in the late 1960s. T Rowe Price's small cap fund OTCFX has averaged 13% since Eisenhower. Sector funds, like Vanguards healthcare or Fidelity's IT portfolios have averaged 14-16% since the 1980s. Run the numbers on these figure, including the higher fees. Fear based selling is shameful. How do you two sleep at night?

@zhannayarkayeva3414 3 года назад

Yay. Awesome comment. When we canceled our UL, on a paper that we received was stated that canceling this policy can have a TAX implications. It was not, because we lost money.

@joshuatfields 3 года назад

The type of policy he's discussing don't have long surrender periods. They don't have any as a matter of fact. I also keep investing separate from my life insurance policies. The money that goes in there is in my safe bucket. I can pull money out of that bucket to do some investing if it gets overfunded. Ultimately it's making my portfolio more efficient because of the returns, safety, and liquidity it offers against other safe money alternatives. A whole life policy is not meant to compete with the S&P. Finally, the commission on a typical life insurance policy at a major mutual company usually starts out around 55% of the annualized premium. Permanent policies cost more which obviously leads more agents to sell. However, the type of policies that I and Garrett structure only provide that type of commission on the base premium. Due to the base being so low and the rest flowing into the cash value, the commission is cut pretty substantially. The latest policy I wrote, pays about $1000 commission vs $16,000 had I structured it differently but it's much better for the policyowner.