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About the Author: rr1455

38 Comments

  1. PART 1/2
    I disagree wtih you Miss Orman. term is good but i dont agree with you that we dont need a life insurance policy when we get old. life insurance is also used for passing legacy. maybe whole life is not good, maybe universal life is not good, maybe variable is ot good.. i dont know, you have your own opinion, but term insurance is not the best. i challenge you to take a look at GLOBAL INDEX UNIVERSAL LIFE policy.

  2. PART 2/2
    intend to be a permanent life insurance and a cash value accumulation that can give you (depending on companies) up to 13.25% in ROR and guarantees you 1% if the market crashed. i challenge you onhow your term life insurance and investment can compete with it.

  3. I’ll just say this as I work in the industry. There is a place for both products and, most importantly, our main job is to get our clients the right amount of death benefit. It’s not to get paid the most.

    That said, in our state last year for our company 2.2% of a death claims were on term policies. The claims were on permanent or whole life insurance.

  4. She’s an ill-informed idiot!

    To say Term Insurance is the only kind of life insurance
    anyone should own is like saying running shoes are
    the only kind of shoes anyone should own … including
    folks with prosthesis legs!

    Term Insurance, as only one example, is almost never in
    force at the time of death!  So, it’s seldom useful in paying
    estate taxes with deep-discounted dollars.

    1. Insurance is insurance. Investments are investments.

      Term-life insurance is insurance. Whole-life insurance is essentially term-life insurance + a horribly inefficient investment.

      Insurance on your income (life insurance) has nothing to do with estate taxes. That is an accounting issue. Also, very few people are concerned about estate taxes (middle class people are among the unconcerned), yet the middle class is heavily targeted with this immensely expensive product that they do not need.

  5. Suzy, you are ill informed. You cannot compare ‘Term’ to a ‘Variable Universal Life Policy’ How do you know that financial adviser that you’re advising this poor lady to fire, didn’t ask the question to her husband of whether leaving a legacy for his children or being able to access the cash value towards his child’s later years, free of taxes, to fund their college education, was important to him or not? Just so everyone knows, from an honest person, just a whole life or just a term is almost never the perfect solution to anyone but instead, layering the two and having a fine blend of the affordability from the term and the accumulation aspect of the permanent policies (WL,UL,VUL), is most often the solution to properly protect your family while being able to build a pool of money through a permanent policy simultaneously. 

    1. “How do you know that financial adviser that you’re advising this poor lady to fire, didn’t ask the question to her husband of whether leaving a legacy for his children or being able to access the cash value towards his child’s later years, free of taxes, to fund their college education, was important to him or not?”

      – Why on earth would you look to an insurance product to save for college? They have investment products specifically tailored for that, that are much simpler, and have a much higher rate of return.

      “Just so everyone knows, from an honest person, just a whole life or just a term is almost never the perfect solution to anyone but instead, layering the two and having a fine blend of the affordability from the term and the accumulation aspect of the permanent policies (WL,UL,VUL), is most often the solution to properly protect your family while being able to build a pool of money through a permanent policy simultaneously. ”

      – While I am sure it is POSSIBLE to do these things with a combination of term and whole life, it MAKES A LOT MORE SENSE to have a combination of TERM insurance and INVESTMENT (non-insurance related) products in order to reach these same goals, and to do so with a MUCH HIGHER rate of return.

  6. I think it makes sense to get both term life for your short term needs and whole life for your lifetime needs. Consider a mutual life insurance company that pays dividends for your whole life insurance plan. Make sure you consider all of your goals for your life insurance before deciding what type of life insurance plan(s) to purchase.

  7. Based on what the lady said, Insurance is temporary.  Your financial advisor should be helping you with investments, thats what you would be doing with that difference.  If you aren’t then you’re setting yourself up for failureee

  8. I sell Life Insurance.  If you outlive your “Term” policy, you have nothing to show for it when you do not die during your Term Policy.  The insurance company Wins because they collect Term Premiums hoping you do not die during your Term Policy and collect your death benefit.  Orman does NOT know what she is talking about!!!

    1. +J-A you sound pretty stupid you . By term invest the difference . Meaning by the time your insurance page out you will get enough asset to live life pretty good. Can you tell me what insurance is pretty good like this . The agent that give you the cash value insurance it is in the benefit of the producer not the client because they make more commission

    2. You can say the same thing about people with car insurance that never get in a wreck. But that is the whole point, it is INSURANCE! Insurance =////= investment. Car insurance is not an investment. Life insurance is not an investment.

      “The insurance company Wins because they collect Term Premiums hoping you do not die during your Term Policy and collect your death benefit.”

      – Uh, this is a win-win situation, is it not? Presumably, both you AND the insurance company hope you do not die during the term policy. This is also flawed, because whole-life policies (and its ilk) assume you will always need the death benefit, but I think the goal for most people is to be financially secure in their old age, so that in the event of their death no one NEEDS a huge payout.

      – After your 30 term life is up (maybe you got it in your 20’s), as long as you have been proactive about your finances, the only life insurance you might need will be for funeral expenses (though you could easily save for that). Debt will all be gone (even 30-year mortgages assuming you bought the house around the same time as when you got term life), kids will all be out of the house, your retirement will be well funded, your income will be at its peak, etc, etc. Who exactly is going to need a big payout at this point?

      – Lastly, if the insurance company wins with term insurance, then they win MASSIVELY with whole-life insurance. Part of your premium goes to pay for a term-insurance-like portion of the policy, and the rest of it is invested. HOWEVER, they only give you a small slice of the return on that investment, and they pocket the rest, as well as take the premium that goes towards the actual INSURANCE aspect of their product.

  9. is she licensed to tell people to cancel their life insurance? $600/mo for 750k doesn’t sound bad at all. that woman sounded as dumb as suzie orman, so hopefully her husband has the brains.

    1. Well, it depends on your age and health. But assuming that the husband to the lady asking the question is in his 30’s (and fairly healthy), then $600/mo is horrendously expensive compared to a term life plan.

    2. she`s saying whole life at 600 a month is bad for a struggling family…they can get 20 year term for 50 a month…you obviously dont pay attention yet you want to attack her

  10. There are a lot of people commenting here that are so misinformed, it’s scary! Fact #1: You will NEVER get both your face value and savings! Fact #2: You are earning LESS than 2% interest on your “savings” portion, according to a FTC investigation. Do yourselves a favor, and either hire a REAL financial advisor, or find the nearest Primerica office!

    1. Buying Term Life insurance? Be informed that Primerica is a Multi Level Marketing Company similar to Herbalife, Anway, Mary Kay. And thus as many MLM Pyramid companies, they are not safe in the long term.

  11. What you should do is find a guest that isn’t paid to read a very specific script design to create a specific narrative. Not a fan of UL.

    But that Said Dividend Whole life has a purpose. Not the purpose stated in the video. But there is a time in place. With that said. She should still get a new financial adviser.

    1. The vast majority of average american families (those in the middle class or lower) who’s adviser is telling them to get whole life, should fire their adviser.

    2. Kenneth Andrews my insurer just came to the house. he is trying to get me into whole life 50,000 for $65 a month. I already have term life 20 years for less than $16 a month.

  12. Imagine going into a bank and the teller says:
    1) We will charge you 15% for you to make a deposit.
    2) We will charge you 6% if you want to borrow the money you deposit
    3) If you fail to make a deposit, you will have to pay a 40% surrender fee for not continuing to make deposits.
    4) We will charge you a yearly fee of about .5% to maintain your money
    5) You better calculate the total fees that you will pay, because it’s likely going to be much more than you think.
    6) The projected rate of return virtually never materializes, costing the customer up to tens and even hundreds of thousands of dollars.

    Would anyone go to this type of bank? Yet these these are the types of things UL, IUL, WL policy holders are facing. No thanks!

  13. Finally think i got the info I’ve been desperately looking for! Life insurance should only be in place to cover until your assets pick up. Until your child is 23 (assuming because of college debt) . This is beginning to make sense to me FINALLY. I have a 2 year old daughter so a 20 year term would make the most sense. Thanks for this clip

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