Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
I cant disagree with you on that one. For some reason I just dont find him trustworthy. I may be totally wrong but its just a feeling I get.
I had a new Dave Ramsey fan as a son of an FE applicant yesterday.
He liked the premium. The locked in rate, the fact that dad could get first day coverage, etc. but then he asked if this policy built cash value.
Yes, it does build cash up after the 2nd year.
Nope! We don't want this one then. No cash value insurance.
So if I have a company that will be the exact same on everything but doesn't build cash value, that's what you want?
Yes.
You are a Dave Ramsey fan aren't you?
Yes.
Listen, all the cash value means is that if your dad pays on this policy for a few years and then cancels, he gets some of his money back. I can sell your dad a term plan with no cash value but the rate will increase next year at age 75 and if your dad doesn't die by age 80 it will cancel him entirely.
Why would Dave recommend that?
Because if you dad sells everything he owns and moves into your basement and invests all of his money with Dave's Enorsement providers they will get him over 12% on his money and he will be rich by age 80 and not need life insurance at that point.
OK, we will take this one.
I posted a comment on Dave's website once (on the life insurance page) about term vs. perm. It was totally professional, but, it was... deleted. Oh well.
I guess permanent insurance isn't very Christian according to Dave.
But then again, who is he to judge? I dislike how he mixes his religious beliefs with his financial advice, like if you don't do it his way, you are less of a Christian.
</end rant>
By far the best asset to hold in a trust is a permanent life insurance policy because it skips two tax returns (your last tax return and your estate tax return).
Suzie Dave and Clark are talking about folks who are still working: Buy Term and Invest the Rest. This has been the slogan since the 1980's, so they aren't saying anything new.
I have actually hear clark put on the spot, and he agreed that for elderly folks, to have a small ($10-15k) WL is just fine for final expence, if the individual isn't already a milionaire from 'investing the rest'.
Basically, all insurance used to be whole life. People would buy 3-7 times their annual income in whole life. Then they came out with Term and mutual funds. The new hot ticket was 'Buy term, invest the rest'. Except most people forgot about the 2nd part of that advice, and didn't invest.
Now they need a small whole life for funeral expenses.
Now, all you agents out there. You get a client in their 30s-40s with 2 kids and a mortgage. He makes $50k a year, and wants $500,000 in insurance to protect his future earnings.
No. you DON'T sell them $500k in whole life, tell them they can borrow cash value for their kids college, and when they're 65 they can use the remaining cash value to retire.
You sell them TERM. In the distant past, people would have bought $500k in WL. Not anymore.
But wow, that would be a great living, selling 1/2 million dollar WL policies to Joe Middleclass. RNA quotes $4-6k annual prem for that policy...if we could do that 4 or 5 times a week, life might be pretty good lol....
Dave, Susie and Clark are ALL correct...in this scenario....they are simply not being clear about the scenario.
If any one of them recieved a call that went like this: "I'm 70 years old, I don't work, I don't have assets, live on a fixed incom, my kids don't have assets and they have children of their own to care for, do you think it would be good to get a small $10k WL policy for $50mo that goes into full effect immediatly?
I can't possibly see how any of the 3 would say 'no'.....or maybe Dave Ramsey would tell them to pay off their house and sign it over to the funeral home....lol....
Or.....get on the business end of a lawnmower and earn some extra money to afford a $20k policy and sell everything else LOL