Aldeer.com Forums Alabama Deer Talk Aldeer General Forum Life insurance question

The truth is none of us are qualified to answer this question without knowing more details of the guy's situation.

Exactly Ford.

This thread is a really good example of why people should deal with professional insurance agencies. There is simply a lot of misinformation out there that will end up costing people a lot of heartache and financial pain at some point in their life.

THIS!

I'm with Dave Ramsey and every other Qualified unbiased financial advisor I've read or met with. Dont broad brush "this is just dave Ramsey's opinion" because its the opinion of hundreds of financial advisors and authors. The only people that I've seen suggest whole life insurance usually get a commission from selling it.

True. But it's a better example of how people should educate themselves and not take the word of an insurance salesman, or any other salesman for whatever product. There is ONLY one person that will ultimately look out for your best interest and that is YOU. By the way, I'm not knocking salesmen. I am one.

Whole Life is often confused with other types of permanent insurance. But if you think term is recommended by "hundreds of financial advisors" with a broad brush, you've obviously never known an advisor who has worked with anyone who needs estate planning. Term insurance is a horrible product in that situation.

I'm out on this thread guys. While some of you think you are educated on the topic, you are simply misinformed.

Insurance is not an investment.

Of course there's going to be an agent on here who works the employer/payroll market and gets their panties wadded up and will spout off some garbage statistics, but the REAL discussion ought not be over term vs whole life. Instead, the REAL issue is people who don't buy personally-owned insurance because "I've got it at work". When you boil it all down, I don't care if you buy term or whole, just get SOMETHING that you own and control! Seems like I saw a figure many years ago that showed something like .01% of life insurance from work ever paid out. That's not because most of it is junk (it's not), it's because most people quit, get fired, laid off, change jobs, become disabled, retire, etc and lose that coverage. And everybody says, "Yeah, but I can take it with me if I leave". Actually, very little of it allows you to do that, and the little bit that does has to be converted from that cheap group rate to an individual rate at your attained age (and most times the coverage limit also reduces). I oftentimes want to just point blank ask, "When you are telling me all this about your wonderful payroll life insurance, are you genuinely that convinced it is the answer to your life insurance needs, or are you just trying to not buy more from me? Because two minutes ago you couldn't even tell me how much coverage you have."

I'll give one simple example of a use for whole life:
"Pension Maximization"
You're about to retire, so your company gives you two options for your pension...Option A, and Option B.

Option A says you get $1000/mo, and even if you pass away your spouse will continue to receive it. Option B says we'll give you $2000/mo, but it ends upon your death.

So you buy a whole life policy for a certain amount of coverage (just say $500,000 for example) and it costs you $500/mo to pay for it. Take Option B on your pension, and even if you live many more years, you're still making $500/mo more than Option A, plus your spouse gets $500,000 if you die. Pension maximized, problem solved.

Term insurance is NOT viable for that, you may outlive it and then the ship is sunk.

One last thing, there is NO such thing as an unbiased opinion (ie: Dave Ramsey). Again, his ideals work in an ideal world. I wholeheartedly agree with his logic, it's just that 95% of us won't live his way. His advice only works if you are independently wealthy at retirement.

I couldn't agree more. Educate yourself (learn how to do math), then go sit down and talk to the "experts" and you can seperate the good products from the bad. If you are willing to buy it someone will sell it to you.

I had a financial advisor recommended to me by a friend a few years ago. Went and sat with and listened for a hour about how I was going to be a multi-millionare by buying his insurance product. Left in a friendly way and never looked back.

Originally Posted By: ikillbux

I'll give one simple example of a use for whole life:
"Pension Maximization"
You're about to retire, so your company gives you two options for your pension...Option A, and Option B.

Option A says you get $1000/mo, and even if you pass away your spouse will continue to receive it. Option B says we'll give you $2000/mo, but it ends upon your death.

So you buy a whole life policy for a certain amount of coverage (just say $500,000 for example) and it costs you $500/mo to pay for it. Take Option B on your pension, and even if you live many more years, you're still making $500/mo more than Option A, plus your spouse gets $500,000 if you die. Pension maximized, problem solved.

Term insurance is NOT viable for that, you may outlive it and then the ship is sunk.

One last thing, there is NO such thing as an unbiased opinion (ie: Dave Ramsey). Again, his ideals work in an ideal world. I wholeheartedly agree with his logic, it's just that 95% of us won't live his way. His advice only works if you are independently wealthy at retirement.

Actually, it works if you are financially independent at retirement. If you're not financially independent, you can't retire--you have to continue working.

Insurance is simply betting that you'll die young, if you live to be old it's better to save the money in a low-risk investment.

Said everybody that died young.

I see what you did there!

to me insurance does 2 things it protects either myself or my wife in case one of us die and it helps with the loss of the others income if one of us die now or in the near future. 2nd in the golden years when everything is paid for (hopefully) it cover final expenses for the both of us so that the family is not burdened. So we have two policies. A larger term in case we die young and a smaller whole so that we have guranteed coverage in the later years.That is what works for us.

Goodman Hunter I love you like a straight man would! on your answer!!