As a former life insurance agency owner I 100% agree that term life insurance is most appropriate for 99% of clients and investments should be done seperate. Insurance companies spend billions of dollars running the numbers and hiring actuaries to make sure the numbers are skewed in their favor even on products such as IULs.

@YoutubeFabLifeOfJan1

9 ай бұрын

What are some of the best companies that you would trust?

@twinklinglightly8257

8 ай бұрын

@@KZreadFabLifeOfJan1 I would google the best companies for term insurance. I personally have a policy with a company that came out on that list. Some things you want to look at what is the rate at the end of the term? When does the company increase rates? Company stability? Agent knowledge and capability? (if you buy term you will need to do something like invest the rest)

Not to mention some term policies allow you to withdraw up to 50% if you become very ill and need to pay for treatment which is smart on the insurance side

Talk about timing!! I was literally, just this moment, starting to reach out to get some additional life insurance quotes. On a lark I thought I'd hit you guys up first to see if you had any content about the best/worst choices! Seriously...remarkable timing! Thanks, fellas!

@twinklinglightly8257

8 ай бұрын

Hey Jason, How did this information impact your discussion?

Love your videos! Odells Law: The more complex the financial product the better it is for the seller and the worse it is for the buyer.

@twinklinglightly8257

8 ай бұрын

Yes!! So true

One other often overlooked factor that can lower your life insurance need is the Social Security survivor benefit for minor children. If you pay into Social Security and die when you still have minor children, your children are likely eligible for monthly ongoing payments, a portion of your Social Security benefit, until around when they turn 18 or graduate from high school. Something else to look into to make sure you're not paying for more life insurance than you need to...

What do you guys think about return of premium term life insurance l?

This was the first time I heard y'all be a little more neutral on this topic, good on y'all 👍

I’m 23, single, no kids, no debt and yet I watch this thinking I’ll miss something important for my age. Oh well, the more I know the better!

@sidneyboakye4662

10 ай бұрын

In the same boat and was talking to my advisor about it. Not sure if I really need any of this, even term really.

@twinklinglightly8257

8 ай бұрын

Well, the question is "If you could who would you like to help out, leave in a better situation or donate to if you are no longer here?" If you can think of someone (like leaving your parents something) then you may consider income protection. @@sidneyboakye4662

@brewdog8568

7 ай бұрын

23 you are young and it sounds like you are in a good place in your life financially for being so young just being here means you on the right path. Keep it up

19:47 “my wife having the child” 😂 thanks for clarifying

Any insurance company recommendations?

I was just thinking about this topic yesterday. No idea where to get the cheapest policy for the most payout.

@Striker50_

Жыл бұрын

Remember that you get what you pay for

@ericsulser846

Жыл бұрын

PolicyGenius works across multiple provides and had pretty good rates when I was shopping around for term

@RobotMowerTricks

Жыл бұрын

@@Striker50_ There are many things in life that is not true at all. Is it true for term life insurance? I don't know.

@RobotMowerTricks

Жыл бұрын

@@ericsulser846 Thanks!

Term or not at all for 99% of people. Better to just invest and pass down the returns.

My father in law purchased whole life insurance policies on my wife when she was a baby, and paid the premiums until we got married at 28. My wife and I then started paying the premium (5K per year), and the cash value goes up by more than 6K per year. I'm curious if you think this is a good asset to have in our portfolio? Normally I don't like WL insurance (for reasons you mention in the video), but my father in law did all the heavy lifting by paying premium in the years when there was very little cash value. It now seems like a safe 5% return per year, even when the stock market goes down. I'm I fine holding onto the policy, or should I just surrender the entire cash value (about 105K)?

@Moontani

Жыл бұрын

I'd be interested in how you end up deciding which course of action to take.

@admiralmurat2777

Жыл бұрын

This is actually a very interesting question. I'd love to see what the Money guys have to say about it. That's a unique spot to be in.

@zw9847

Жыл бұрын

If you surrender you’ll take the tax hit just FYI. Maybe use it to collateralize a loan w/ a bank and get a low interest rate on a house or rental property? *not financial advice*

@jacoborlofsky5305

Жыл бұрын

@@Moontani I decided I will keep the policies, and will surrender some of the cash value as I see fit. Right now the stock market is still down about 10% from all time high, so ideally I wouldn't want to pull out money right now. I just bought a house, so to furnish it I will surrender $20K from the policies. The 20K will not have a tax impact. I like having a part of my portfolio that gives me safe consistent returns and gives me a source to pull from when the stock market is down (like right now!). I give up some long term return (index funds would give me 8-10% in long run, vs WL will give me about 3-5%) but it isn't the majority of my assets so I am OK with the stability it gives me. I'm sure some people would tell me to do something different, but I'm fortunate enough to be in a position where this decision won't crush me one way or the other.

@R_Jon

Жыл бұрын

I’m so sorry. Your father-in-law got scammed, and now you have this policy. If you take that money out and invest it in the market, you will benefit SO much more. When you wrote this you said that the market was 10% down. What a great time to sell this crappy life insurance and buy at a discount! Imagine buying a home when the market is 10% down. What a great opportunity. Just as a comparison for all those who don’t know why I don’t like WL insurance, if your father-in-law had invested that $5,000/year for 28 years into a custodial account and just bought a low cost S&P500 fund, the writer, Jacob, would have married his wife at age 28 and she would have an account with $1,149,391 in it!! How much cooler would that have been for a young couple than a life insurance policy which COSTS then $5k per year, and according to his numbers, doesn’t even grow by 1% (he added $5k and it increased by $6k, so $1k in growth with a benefit of $105k???? That’s less than 1%).

If you are young and single, is insurance still a good option, or should I wait till I’m a little older?

@jorlowsky469

Жыл бұрын

Nvm. They answered my question.

Can you also talk about whole life insurance with a rider for long term care insurance? What’s are the pros and cons?

@astroman30

4 ай бұрын

Waaaayyyyyy too expensive. You can buy a long term care policy without whole life.

I got whole life to take care of my family and not as an investment option. I'm not trying to make money off of it. Thats just extra (even if the extra is very little). Im making passive income through other investments so the higher monthly payments than a term policy doesnt concern me much. My agent also assured me that by the time I retire I wouldn't have to pay the premium anymore and I'm still locked in the whole life benefit. It simply pays for itself with the cash value which I don't mind anyway because when I pass my beneficiary only collects the death benefit, they don't collect on the cash value. The cash value would go to the insurance company so might as well use it to pay the premium instead of paying out of pocket. I feel for my situation I've made a good decision.

So what would be best for a couple that has 1 child and 1 stays home all day, that’s in their 20s? Im still so confused

@kyliejean4938

11 ай бұрын

And how do you guess your monthly payment from the amount you choose?

@Rangermason

10 ай бұрын

As a financial planner I would say term and make sure to get disability insurance too. Since only one person brings in the income jobs only cover up to usually 60% so get some Disability to cover the rest, so God forbid something to happen your income is still coming in.

@firecraig

7 ай бұрын

Talk to an advisor that can offer more than just one option.

Why not get a 50k whole life with a stage and level 450k term? It doesn't have to be "either or" Can't we get the best out of both world.

Have you heard of Northwest Mutuals T80 life insurance? I can't find any neutral information on this topic?

@zw9847

Жыл бұрын

NWM T80 is good, however not the cheapest out there if that’s your worry. You also have to remember that you’re paying a slightly higher premium to go with a AAA rated company not mom and pop and also have a rep who is more relationship and planning focus then transactional. Not swaying you either way.

@Rangermason

10 ай бұрын

I work with Northwestern Mutual and I have a T80 whole life blend. There’s a lot of hate on whole life but I plan on using it as collateral for buying real estate. I also just cover the rest of needed death benefit with term so it’s solid and in line with my investments. T80 is hard to qualify for with Northwestern but if you can get it do it.

@jparekh18

8 ай бұрын

is this a term product?

@trippij1

8 ай бұрын

@@jparekh18 -ish. It's a 80 year term, but the premiums to up every year. You can convert it to whole life at any point with no additional exams

“Life insurance has a lot of fees and makes a lot of money for the sales person. Avoid fees. We make no money off life insurance.” (Not stated -> we make 1.25% AUM off your money no matter what we do EVERY. SINGLE. YEAR. in perpetuity/FOREVER. Why is this not stated/addressed since it’s somewhat contradictory and just another form of “fees”?

@Thenewyorkdolley1

Жыл бұрын

I think they are pretty clear how they are paid if you watch them, and it’s obviously better than advisors who are paid by putting you into specific products.

@FunStuffBuddy

Жыл бұрын

@@Thenewyorkdolley1they still have their preferred “products”. Really just need to pay someone an hourly rate to get set up and then periodically. 1.5% AUM forever is also just another form of robbery that’s not needed.

@evansutton6760

Жыл бұрын

You could always ask to limit the engagement to areas outside of insurance, like to investments, taxes, etc. You might be able to negotiate a lower fee that way.

@FunStuffBuddy

Жыл бұрын

@@evansutton6760good idea! Just depends if a financial advisor is willing lower their fee

It's funny, whenever videos mentioning insurance are released, you can see the insurance salesmen climb out of the woodwork in the comments. Drinking game, take a drink every time you see a profile with a full name and corporate style face pic say something along the lines of "Insurance product X with a proper structure can be a powerful part of your financial life".

@maliqmatthew1009

Жыл бұрын

Generally, when people try to speak authoritatively on stuff they don't understand, it makes good sense that experts would counter the misinformation. It's mindless to think that experts weighing in is a negative thing.

@Alan-jk1yi

Жыл бұрын

@@maliqmatthew1009 These guys have received MORE training than most insurance sales people, deal with insurance on a daily basis, and one of them is a former insurance salesman. That certainly doesn't make them immune to making mistakes, but I think claiming they don't know what they're talking about is kind of ridiculous. And my point wasn't that experts weighing in is a bad thing, it's that commission-based salesman weighing in about how product THEY are selling is exempt from the criticism is awfully convenient. In the realm of experts, there's a term for that; "conflict of interest".

@linnyh8242

Жыл бұрын

@@Alan-jk1yi Their training was not in how dividend paying life insurance policies from top mutual insurers work, historical rate of performance, and uses, thus claiming they dont know what they are talking about regarding this is not ridiculous. Saying how "insurance companies control your behavior" as if 401K, Roth, or any long term investing instruments don't is ridiculous.These policies are, when designed properly, to function as fixed income replacement due to the liquidity and comparative rate of return with tax advantage; for retirement they are for stock market volatility buffer and then to act as emergency fund/"buy the dip" fund pre retirement. They arguably don't know how soon they can be liquid, historical rate of return, or policy loan feature. AUM fee advisors have just as much conflict of interest since if $100k of the money that would otherwise be in AUM account with them goes instead to dividend paying life insurance, that's money that comes out of their pockets.

It's amazing how people don't understand why trying to use insurance for investing is silly. Why don't I buy "whole auto" or "whole homeowners"? Because I just want it to cover acts of god and there's nothing emotional about covering my car and home.

Lots of companies you can get quotes

Another option would be a term policy with return of premium rider. This would allow you to receive most, if not all the money you paid at the end of term.

@DinSea19

Жыл бұрын

The price is typically double to get a rop rider. You're losing money on the opportunity cost if you had invested the additional money you're paying for the rop

Lol, top mutual insurers have been providing ror of around 4.5% tax free even when the interest rate was near zero for over 15 years. There is a lag in following the interest rate because not all of their money is getting the new rate but it should go up in coming years as it has done historically. It's not meant to compared to equities, its meant to compared to fixed asset portion, or is everyone suppose to put all their money except weekly grocery bills into the stock market?

@thedude5040

7 ай бұрын

Good grief. You have fallen for the cancer. These whole life companies have their head so far up your ass you can't see straight

Unfortunately the comparison for permanent policies have been compared with the wrong benchmark again. For a balanced portfolio where the investment arm is well fueled, permanent LI should be compared with the fixed income investment bucket. The number of tax benefits for the permanent products was skipped over. For most folks out there, term LI makes most sense, but often people miss out on the benefits of permanent LI due to a lack of understanding and a focus on the fees. A huge miss.

@goodelleric

8 ай бұрын

They said multiple times that there are some wealthy people who can get a benefit out of life insurance to stay wealthy. They are talking to the other 99.9% of people who have life insurance sellers pitching them life insurance as a retirement plan or the backbone of their investing strategy.

❤❤❤

Guys, they just said," we dont beefit from selling life insurance". Yeah, these guys are stockbrokers in disguise. They dont know anything about life insurance and its benefits. Dont take life insurance advice from stock brokers!

@MoneyGuyShow

Ай бұрын

Is this 1983?! Who is a stock broker? We are fee-only fiduciary financial planners. We also have a few designations earned (CFP(r), CPA, CFA) with close to 50 years of combined industry experience. I’m not going to get in the dirt with you- we like insurance and even working with insurance agents. Like most things in personal finance… everyone’s specific needs are personal, but we use our channel to educate the masses on good financial practices 👍

Whole life insurance when structured properly should not be looked at as an expense. It should also not be looked at as an INVESTMENT but as a savings account. My mother always told me this tried and true principle of "You get what you pay for." For me I get more value by having whole life insurance instead of term insurance. For most people term insurance is totally appropriate and I'm sure that is your target audience (kinda like Dave Ramsey).

@astroman30

3 ай бұрын

At My bank, I did not need a salesman to sell me my account. At My bank, where I "store" my cash, does not charge any commissions. At My bank, I "break even" on day ONE. At My bank, they have no fees to sap the effective interest rate, currently 4.25% (2023). At My bank, if I want some of my money I just request it and they give it to me. No borrowing/fees/interest. At my bank, if I want to close my account, they give me 100% of my funds. (No surrender fee.) At my bank, I earn taxable interest. That is because I OWN my account and it experiences real growth of money that I can readily spend. At my bank, I will always have taxable interest income because I am able to pull out MORE than I put in. At my bank, if I want a loan, I don't have to self fund it first or wait (at least) 10 years to build up a cash value. At my bank, all loans are ”tax free.” At my bank, if I take out a loan, the maximum amount is not tied to some percentage of my savings account. At my bank, if I get a loan, my savings continue to earn interest unaffected by the loan. (WOW! Just like an "infinite bank.") At my bank, if I die, the bank does not keep the funds in my account.

How is Whole Life Insurance even legal? It seems like a 100% scam

@TopShot501st

Жыл бұрын

So is social security yet it keeps going...

Whole life term insurance with a 20 year locked in annuity with early withdrawal fees and complete surrender of investment profits at time of death is *chef’s kiss*

@MoneyGuyShow

Жыл бұрын

Not sure that follows the K.I.S.S. I know - Keep It Simple XXXX 🤷‍♂️

The IUL is a powerful investment product if structured correctly

@admiralmurat2777

Жыл бұрын

It's rarely an appropriate product for the average American and would recommend you not peddle it off to your "friends" either.

@andyk4972

Жыл бұрын

100% agreed… most people, including insurance agents don’t fully understand it

Nope. VUL is NOT capped. You guys knowingly lie.

Your opinion is not a relevant answer to research. What does research show? If you don't know it, get familiar with it. Otherwise, you're offering advice based on conjecture and pretending that authoritative knowledge isn't readily available.