Hi all,
Forgive my ignorance (I'm totally new to the business), but I'm hopeful some of you can enlighten me here. I've been trying to figure out the value of whole life for a while now, and I still can't see it.
My main problem with it is that there is so little cash value accumulation in the first several years and it takes forever for your cash value to match your cost basis. I'm assuming the fees and commissions are paid out of the first several years of premiums paid.
Are there whole life policies where there is good immediate accumulation and the insurance companies just tack on a surrender charge like they do with a lot of annuities to cover fees and commissions paid?
The whole buy term, invest the difference philosophy is so simple to understand and make sense of. I have yet to meet anyone who could clearly and simply articulate the value of whole life. I'm really hopeful someone here can. In terms of commissions, it seems like a great thing to sell. But I can't do it unless I can understand how it's the right thing for someone.
Jeremy
Forgive my ignorance (I'm totally new to the business), but I'm hopeful some of you can enlighten me here. I've been trying to figure out the value of whole life for a while now, and I still can't see it.
My main problem with it is that there is so little cash value accumulation in the first several years and it takes forever for your cash value to match your cost basis. I'm assuming the fees and commissions are paid out of the first several years of premiums paid.
Are there whole life policies where there is good immediate accumulation and the insurance companies just tack on a surrender charge like they do with a lot of annuities to cover fees and commissions paid?
The whole buy term, invest the difference philosophy is so simple to understand and make sense of. I have yet to meet anyone who could clearly and simply articulate the value of whole life. I'm really hopeful someone here can. In terms of commissions, it seems like a great thing to sell. But I can't do it unless I can understand how it's the right thing for someone.
Jeremy