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Started By
Message
Why dont more people see the value in Life Insurance?
Posted on 2/8/17 at 2:05 pm
Posted on 2/8/17 at 2:05 pm
Is it because a lack of knowledge of the particular products or do they just not love their family?
The fact that the top 10% of the wealthiest people are the ones who own the majority of life insurance should tell you all you need to know. It is the ultimate investment because you'll never get the guaranteed return like that any where's else (in whole life anyway). It also can make you money while you're living (7-15% depending on health and how you pay it) and be a tax right off for business owners.
Just blows my mind when some people say no I don't need that because its the only guarantee in life....you will die at some point haha
The fact that the top 10% of the wealthiest people are the ones who own the majority of life insurance should tell you all you need to know. It is the ultimate investment because you'll never get the guaranteed return like that any where's else (in whole life anyway). It also can make you money while you're living (7-15% depending on health and how you pay it) and be a tax right off for business owners.
Just blows my mind when some people say no I don't need that because its the only guarantee in life....you will die at some point haha
8
Posted on 2/8/17 at 2:09 pm to Keeble9145
they don't see the value b.c whole life insurance is usually a scam, targeted towards rubes.
Its not always a bad idea, but most of the time it is.
Hell, I am not a fan of term, unless you have children or its subsidized through your employer.
Its not always a bad idea, but most of the time it is.
Hell, I am not a fan of term, unless you have children or its subsidized through your employer.
This post was edited on 2/8/17 at 2:10 pm
Posted on 2/8/17 at 2:32 pm to Keeble9145
Whole life is a scam
Posted on 2/8/17 at 2:40 pm to Keeble9145
So what do you do for a living?
Posted on 2/8/17 at 2:40 pm to yellowfin
quote:
So what do you do for a living?
Posted on 2/8/17 at 3:07 pm to yellowfin
quote:
So what do you do for a living?
I work for an Industrial company in sales but I did work in life insurance a long time ago. How exactly is whole life a scam? You'll never get that guaranteed return in a bank or in most other investments unless you get lucky but that also involves risk.
For instance, I just invested in a 10 pay policy for 8,000 a year and will be insured for 500k the rest of my life. Also by age 50 it will make me around 150k. I just don't understand why more people don't see the worth. You can always cash it out and only have to pay taxes on the gains. So that's better than what any bank will give you.
This post was edited on 2/8/17 at 3:10 pm
Posted on 2/8/17 at 3:12 pm to Keeble9145
How long till age 50? and it will make you around 150k?
Posted on 2/8/17 at 3:16 pm to HYDRebs
I'm 30 right now, so in ~20 years it'll make me a profit of around 150k. Health is a big factor on how you're rated and that will determine how much money it will make for you. My boss writes off around 20k a year on life insurance and will be able to cash it out tax free (what he has invested)and only taxed on gains when he retires.
Posted on 2/8/17 at 3:19 pm to Hawkeye95
quote:
they don't see the value b.c whole life insurance is usually a scam, targeted towards rubes. Its not always a bad idea, but most of the time it is. Hell, I am not a fan of term, unless you have children or its subsidized through your employer.
You obviously don't know much about the products if that's your thoughts on it. Term life is the biggest scam there is, whole life you're at least guaranteed to get it (will also be more than what you put into it) and don't have to pay on it forever if you have the right policy.
Posted on 2/8/17 at 3:22 pm to Keeble9145
quote:
Term life is the biggest scam there is, whole life you're at least guaranteed to get it (will also be more than what you put into it) and don't have to pay on it forever if you have the right policy.
Posted on 2/8/17 at 3:27 pm to Keeble9145
quote:
I'm 30 right now, so in ~20 years it'll make me a profit of around 150k. Health is a big factor on how you're rated and that will determine how much money it will make for you. My boss writes off around 20k a year on life insurance and will be able to cash it out tax free (what he has invested)and only taxed on gains when he retires.
So you pay $160k in premiums and get $150k in 20 years.
If you invested that in the stock market, and received the historical market average (6%), you would receive $294k. Granted you get term life insurance, but $4100 invested annually woudl net you about the same amount in 20 years.
So if term life insurance is less than $3900 a year (I would assume it is by a multiple of like 10), you would be better off investing it.
Granted you get a "guarantee" but that is close to 0% interest.
Go ahead, and tell me what a great idea this investment is.
Posted on 2/8/17 at 3:29 pm to Keeble9145
Term life is only way to go
Posted on 2/8/17 at 3:37 pm to Hawkeye95
quote:
So you pay $160k in premiums and get $150k in 20 years. If you invested that in the stock market, and received the historical market average (6%), you would receive $294k. Granted you get term life insurance, but $4100 invested annually woudl net you about the same amount in 20 years. So if term life insurance is less than $3900 a year (I would assume it is by a multiple of like 10), you would be better off investing it. Granted you get a "guarantee" but that is close to 0% interest. Go ahead, and tell me what a great idea this investment is.
You must not be very good in math, a 10 pay at 8,000 a year would be a total investment of $80,000. 10 pay means you don't pay anything after ten years. So go ahead and tell me about that interest now
Posted on 2/8/17 at 3:39 pm to LSUpetro
quote:
Term life is only way to go
Basically setting money on fire unless you get a return of premium policy.
There are certain times in life where you need it (with young kids and a lot of debt) but I would never choose it over whole life.
This post was edited on 2/8/17 at 3:41 pm
Posted on 2/8/17 at 3:44 pm to Keeble9145
I own several whole life policies and one large term policy. The WL policies are now at the point where there is significant cash value and growth in them. The first couple years was not easy but now I'm glad I did it.
Posted on 2/8/17 at 3:47 pm to BurlesonCountyAg
quote:
I own several whole life policies and one large term policy. The WL policies are now at the point where there is significant cash value and growth in them. The first couple years was not easy but now I'm glad I did it.
Not all companies are like that but if you're with the right one its a great way to invest your money.
Posted on 2/8/17 at 3:54 pm to Keeble9145
quote:
Basically setting money on fire
THAT'S THE WHOLE POINT OF INSURANCE.
It's not an investment.
This post was edited on 2/8/17 at 3:55 pm
Posted on 2/8/17 at 3:54 pm to BurlesonCountyAg
Same here. Its growing a lot more once year three hits and just keeps growing and gets bigger. So nice to see. I admit though I second guessed a shite load. Posts on here about it made me feel like a complete retard. I called my buddy out on it but I knew he wasn't just trying to pull my chain(NWM guy and college buddy). Its just part of the strategy for retirement. I want multiple avenues of income. I don't just want investment accts to rely on. Its something that if I stick with it, I know its guaranteed plus growth. And if the stock market isn't doing to well by the time I retire, I can leave it alone to build back up and pull from this. Alot of people advise against it, but its up to the person I think and what they want to do and what the goals are.
This post was edited on 2/8/17 at 3:55 pm
Posted on 2/8/17 at 3:58 pm to Golfer
quote:
THAT'S THE WHOLE POINT OF INSURANCE. It's not an investment.
Except with Whole life because it makes you money and protects you. So yea you couldn't be more wrong in this case lol
Posted on 2/8/17 at 4:01 pm to AUtigerNOLA
quote:
Same here. Its growing a lot more once year three hits and just keeps growing and gets bigger. So nice to see. I admit though I second guessed a shite load. Posts on here about it made me feel like a complete retard. I called my buddy out on it but I knew he wasn't just trying to pull my chain(NWM guy and college buddy). Its just part of the strategy for retirement. I want multiple avenues of income. I don't just want investment accts to rely on. Its something that if I stick with it, I know its guaranteed plus growth. And if the stock market isn't doing to well by the time I retire, I can leave it alone to build back up and pull from this. Alot of people advise against it, but its up to the person I think and what they want to do and what the goals are.
That's how I thought about it. I would never save 500k in the bank by putting 80k into it so it'll give me a lot more financial freedom once I retire and not really have to worry about how much i'm leaving behind to the loved ones.
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