re: Whole Life Insurance??

I don't see where my opinion is biased because I sell the product.

There are very few options out there that would be a substitute for what Universal life provides.

It outperforms a savings account, most if not all CD's and still provides tax deferred growth. There is no "risk" as there is a guaranteed ROR and a non-guaranteed ROR.

What would you suggest in stead of a UL policy?

Everyone seems to shy away from cash value life insurance because of the up front comissions. I inform all my clients to avoid cash value products if you will need the money within 5 years, but as a supplement to a 401(k) this product meets certain needs that no others provide.

All financial products pay a commission UL just pays them up front, it doesn't possess the lifetime trails associated with Mutual funds.

I'm on a 1.7mil 20y term right now for about 180 a month with one of the countries oldest INS. Companies. I invest the savings in mutual funds.

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TERM is the only way to go --take the difference in premiums and invest

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not always the case.
permanent ins has its place.

sales talk

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Absolutely. Ask all the people that had all their savings in the market about a year ago. People were scrambling for safety.

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just one year of the stock market as an example, compare the incestment performance of any of these insurance products to average mutual fund performance over 25-30 years including last year and there is no comparison. IF someone has an estate large enough that life insuranc might be a useful tool for estate planning, a 70 year old male can still purchase 20 year level term for a third of what the whole or universal would cost.

I can't speak for all companies, but mine won't offer term after age 65. Couple that with the fact that over 50% of people age 65 won't pass underwriting requirements to be covered, and smaller than 50% would be covered under a standard rating.

I have a client age 65 paying $550 a month for 300k of term life insurance that will end at age 77. It's a necessity because he's building a 500k house and can't afford any other options, but 20 years ago before he was diagnosed as a diabetic. I am sure he wished he had purchased some permanent insurance earlier in life.

As for the comment of the guy paying $180 a month for 750k of term life insurance, my question to you is what is his plan when his term ends? Will he be debt free? Is paying $43,200 for a product that annually pays out 2% of claims a wise investment?

Term fills a roll, do you encourage your clients to rent instead of buy a home because it's cheaper?

Why would only 1% of the free world need term insurance?

If you can purchase a whole plan for $20,000 in premiums over a 20 year span and will pay out 100,000 at some point be it now or in the future why is that beneficial to only 1% of the free world?

Converting term to whole life converts at the age you convert it. So if he bought his term plan at age 57, for him to convert it now at age 65 the rates are significantly higher. I did sit down with him and present the benefit of converting a portion to whole life so that should he outlive age 77 he would have something of value, but he's at a point now where he needs more total coverage as his debts have increased (it wasn't my decision for him to build a new house). So given his current situation he would be better off putting extra funds to convert some to whole while keeping the same level of protection (given his current state of health I doubt he could purchase any additional coverage).

Every time people argue over this it blows my mind how insurance agents push insurance as an investment. Un-fricking-real.

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ll stop for now cliff notes version is there is a reason over 90% of America's wealthy have whole life policies on themselves. I sell mainly term to young couples that need to focus on maxing out their 401(k)s, but Universal Life can be an excellent tool as a fixed vehicle to support one's retirement plan. We certainly didn't have any clients lose 30-50% of their retirement in our products over the last 5 years.

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90% did you make this number up?

30 to 50% over the last 5 years or the last 1 year? 1 year is nothing for the stock market and is only a scare tactic if you use this in your presentation to potential clients.

Also, you are talking about 3 and 4% returns. The market has killed that over time. Could you gaurantee to us on this board that that return is net of all the commissions and fees associated with a Whole Life policy?

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Cold Cous Cous

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Been a couple of months, welcome back.