Another whole life example - whole life sucks
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  1. #1
    Registered User Greebo's Avatar
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    Default Another whole life example - whole life sucks

    Just had a little conversation with someone questioning whether or not to cancel his whole life policy in favor of a term life policy.

    He stated that he's got $160,000 coverage for $70/month through work.

    I said I've got a $1,000,000 policy for $125/month. I'm getting $5,714.28 more per dollar than him.

    Wow - whole life SUCKS!

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    Registered User Preston's Avatar
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    Recently my employer held our benefits fair for 2010 so I decided to look into life insurance they have to offer. term. not bad pricing.

    So then I call my insurance agent (that has my house and cars through) and then he gave me a 20 minute spiel about cash value / whole life and tried to sell it as the better deal.

    Knowing onlly to go with term, I found it kind of interesting how he tried to sell it.

    I have his email in my inbox with the official rates.. I am tempted to just put ' whole life is stupid idea, I can go with term and just open my own savings account for the difference' but I'm trying not to be rude.

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    Registered User Greebo's Avatar
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    Would you be willing to share the rates? It'd be interesting to see what they're selling.

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    Quote Originally Posted by Preston View Post
    So then I call my insurance agent (that has my house and cars through) and then he gave me a 20 minute spiel about cash value / whole life and tried to sell it as the better deal.
    Looks like you need a new insurance agent then.

  6. #5
    Registered User Preston's Avatar
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    Quote Originally Posted by a.nonymous View Post
    Looks like you need a new insurance agent then.
    I'm considering it since he's based out of Cleveland and I now live in Cincinnati but I like this particular insurance company better than a lot of others. They are not one of the big GEICO or Progessive, Allstate, etc. and their satisfaction ratings are higher than the others. For now, I am going to tough it out.

  7. #6
    Registered User Preston's Avatar
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    Here is the exact email.

    If it matters, though my wife is a year older than me and a smoker but I'm nagging her to quit. The difference is more than $400/year.

    "For you on a monthly premium: $100,000 of Life insurance 30 year Term policy $21.24 a month



    30 year Term ROP(return on premium) at the end of 30 years if you are still living you will get the entire premium you paid towards the policy back. $32.24 a month



    Universal Life Policy. Policy stays in force until you die or reach the age of 99. Monthly premium will stay the same. This policy will build cash value that you can use in later years. $35 a month





    For Michelle $100,000 of Life insurance 30 year Term policy $35.82 a month



    30 year Term ROP $54.15 a month Universal Life Policy $45 a month

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    Registered User Greebo's Avatar
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    Nothing on what the cash value rate of return/growth will be like, huh?

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    Registered User itlw8's Avatar
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    Quote Originally Posted by Preston View Post
    cash value / whole life and tried to sell it as the better deal.
    It is a better deal ............ for him ........he makes a nice commission on that whole life.

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    Smile Setting up your own personal banking system

    Although my intention was to comment on whole life insurance that was being chastised in the main directory, it can be relevant to this article as well. We are life time consumers with a constant need for money, and money has to reside somewhere. You need to open your mind to understand this. There is much need for financing than for insurance in the average family or individual, and solving for this predicament of financing youn can end up with the highest insurance possible dollar for dollar. Please learn about the Infinite Banking Concept, to do that you can find and read "Becoming your Own Banker" by Nelson Nash.

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    Registered User Greebo's Avatar
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    Quote Originally Posted by Jorge View Post
    Although my intention was to comment on whole life insurance that was being chastised in the main directory, it can be relevant to this article as well.
    This article?

    We are life time consumers with a constant need for money, and money has to reside somewhere. You need to open your mind to understand this.
    Don't teach your grandfather how to suck eggs.

    There is much need for financing than for insurance in the average family or individual, and solving for this predicament of financing youn can end up with the highest insurance possible dollar for dollar.
    Guy I know, been paying about a hundred a month for years into his work sponsored whole life policy. Got a cash value of $5,000 and a coverage amount of $150k. His surrender value is 0 after 5 years. That's $1,200 he's paid each year, over 5 years, for 150k of insurance where I pay $1,500 for a million, which means I could pay $225 for 150k. That means he pays $975 more per year than he needs to - and from that $975 his cash value if he cashes now is ZERO.

    If he put that 975 each year in an investment returning only 5%, after 5 years he'd have $5,387.49, all of it his, and he'd STILL hae 150k in coverage.

    So what's the highest insurance possible, dollar for dollar?

    Oh, but right, the whole life policy pays for itself after a while, right? So he no longer needs to pay premiums?

    I dare say with he $5,387 adding $975 each year and returning 5%, after a while he'd be able to pay his own premiums from that, and still do better.
    Please learn about the Infinite Banking Concept, to do that you can find and read "Becoming your Own Banker" by Nelson Nash.
    Yeah - I've heard of it. It was written by... *gasp* an insurance guy.

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    Someone told me when I was about 21 years old that they call it whole life because it's a hole you just throw your money down, never to see again.

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    Registered User Nishu's Avatar
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    Don't teach your grandfather how to suck eggs.
    Could you please explain the meaning of this? It sounds disturbing and offensive therefore I'd like to add it to my list of usable phrases.

  14. #13
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    Quote Originally Posted by Nishu View Post
    Could you please explain the meaning of this? It sounds disturbing and offensive therefore I'd like to add it to my list of usable phrases.
    Thanks for the laugh Nishu and the quote for my sig.
    ~Russ

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    Registered User Greebo's Avatar
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    Quote Originally Posted by Nishu View Post
    Could you please explain the meaning of this? It sounds disturbing and offensive therefore I'd like to add it to my list of usable phrases.
    Basically it means "don't give needless advice to someone who knows what they're talking about".

    http://www.worldwidewords.org/qa/qa-tea1.htm

  16. #15
    Registered User littleplum's Avatar
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    Quote Originally Posted by Jorge View Post
    Although my intention was to comment on whole life insurance that was being chastised in the main directory, it can be relevant to this article as well. We are life time consumers with a constant need for money, and money has to reside somewhere. You need to open your mind to understand this. There is much need for financing than for insurance in the average family or individual, and solving for this predicament of financing youn can end up with the highest insurance possible dollar for dollar. Please learn about the Infinite Banking Concept, to do that you can find and read "Becoming your Own Banker" by Nelson Nash.
    I prefer to have my money residing in my accounts, rather than in the accounts of some insurance company.

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