March 21, 2023
Whole Life Insurance is a Rip Off | Wealth Nation

Whole Life Insurance is a Rip Off for those of us that don’t understand the product. Starting with the fact that you can use this product to invest in Real Estate. You don’t invest in Life Insurance. Banks and Fortune 500 companies have a better understanding of it, which is why they are the largest purchasers of Whole Life Insurance. In this video, we discuss some reasons we misunderstand Whole Life Insurance.


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48 thoughts on “Whole Life Insurance is a Rip Off | Wealth Nation

  1. Back in 2009 I made a bad decision to sign up for a 50,000 whole life insurance plan with premiums of $50 a month. I thought I was being responsible in making sure that my family was not left with high expenses for my funeral when I die someday. After 13 years of paying that premium, I now have a piddly $4000 cash value in my account, after years of having fees suck 50% of my money out of my "investment". I am now in the process of cancelling my insurance plan. After all, I have more than one retirement plan.

  2. Talking about investment, that’s what these insurance companies do they invest your money and you can also do it in an investment account which is not a whole life insurance. Whole life insurance is not an investment .

  3. But the cash value does not grow overnight. It takes five years or more to grow the cash value which is not worth it. When you borrow your cash value, which is actually your own money’ your death benefit is affected meaning it goes down by 50,000. Also you cannot just remove the cash value, every time you need. These insurance companies are very rich, they use 30 bucks or less depending on what you put in the account to maintain your life insurance while they use your largest portion of your money to invest it and make a lot of cash for themselves and return your money and they give you a death benefit instead when you die. I don’t think it’s a wise idea to buy expensive life insurance. DO THE investment your self in another A&p account and earn all the money without these companies as a middle man.

  4. Yes but whole life is very expensive. It’s better to get term life for 30 years or 15, or 25 years while you create an investment account and you put the largest amount of your money. If you don’t die after 35 years, you will have a substantial amount in a S&P investment account. Which money you can put in an annuity and it will grow wild with the next 20, 30 years. Meanwhile after the 30 years your house should be paid off. Now buy another cheaper life for another 15 or 10 years while your money is growing in an annuity.

  5. Just sold my first whole life policy, and when I say it’s the best feeling ever, let it be known this is no understatement! Yeah I’m getting paid but what really made it worthwhile was the lovely message the lady told me after we finished thanking me for helping her set it up. Can’t wait to grow in this industry!

  6. I saved some money.. and I am interested in making it work for me. Let's say 5k. 6 or 7 videos (in) researching YouTube for possible answers, I noticed you guys are talking about life insurance.

    Question: should I invest in real estate or whole life insurance to turn 5k into financial stabilization?

  7. For term does not work because as you get older you may not qualify once you are older so I went with whole life I do not want to come to a point of re needing and taking a chance of being I’m able to renew due whatever issues may come up in the future mine is 189 per Month for 100k whole life it’s affordable to me. God bless

  8. The math doesn't add up. Whole life seems to be an option for cash strapped families to replace income loss. Not for single or kids grown-up. Besides with term you can invest your cash value at a better rate than the insurance company. Why would I want to borrow my own money and get financed on it then lose it when you die. So what you don't pay back gets taken out the death portion. REALLY. SOUNDS About right coming from agent's and not financial advisors

  9. Homeowners insurance, renters insurance, auto insurance and health insurance do not have a cash value component. So why push cash value life insurance?
    Man, you all are true whole life sales agents. So many subtle put downs of term but irrational exuberance for whole life. Tag team back again….cute though.

  10. Every dollar that goes into Life Insurance, is unavailable to the Securities Industry to bounce around at risk . That’s why young folks by and large don’t have it, plus , if young people(who think they will live forever) do purchase life insurance,, the premiums are so low the Agent will starve to death trying to place it in the plan for creating wealth permanent WELL DESIGNED life insurance , should be the very first investment tool ,, then diversify into Areas of risk

  11. So I recently dealt with getting whole life insurance for my parents after my father was forced into retirement due to covid and health conditions and lost his life insurance through his job. I am an advocate for whole life insurance. I think this conversation is very important and I think that it is important to have whole life insurance IF you can afford it. I'm glad you all pointed out the importance of doing what fits your own budget. Some people will say that you can't not afford to have it. However, the problem especially when talking to black people who are descendants of American chattel slavery who were locked out of building wealth and experience lack of access to higher paying jobs is that we don't know the data as it pertains to income and wealth in this country. It's not likely that an example of paying $10,000 ($833.33 a month) a year for a premium that pays out $600,000 if you die is a reality for most African-Americans because very few African-Americans have an income that will allow for life insurance to be a wealth generator outside of funeral cost. About 53% of black households (households not individuals) in America make between $0 and $37,999. Only 10.75% of black households make between $87,500 (middle class income) to $562,499+(wealthy). To really reap the benefits of a whole life insurance you need stable income. So unfortunately access to this type of investment is cutoff to a large portion of Black America so this message is really only tailored to a privileged few within group. Shifting from income to wealth, when you consider that 90% of all of black wealth is held in the hands of the top 20% of our population and that the bottom 60% of Black America combined has a negative wealth value, it becomes very difficult for average working class and poor people to tap into this. But for those who can access certain level of income to afford whole life insurance I absolutely say you should do it. I actually am splitting the cost with a sibling of mine. So people who don't have the means should come together and get creative. Something that is more important than getting creative economically is for Black Americans to get politically engaged and to demand a change to the structuring of our society so that we are not locked into the bottom. As a group that built this country and has been discriminated and excluded for centuries from the ability to aquire ans maintain wealth, we should not go quiet on letting this be the reality of our lives to where we can't even afford a necessity of American life such as life insurance. It should also be the personal responsibility of any Black American business or platform to advocate politically for its group where and when it can. I bring this point up because it's not a fair point to speak on ways of building wealth without having honest conversations about the challenges that we face specifically as a group to being able to access these means of wealth building. Hopefully I was fair and balanced in my support, criticisms and suggestions

  12. It's good to hear you doing good 👍 with life Insurance but when you lose everything like at the time when had everything worked and SSI,SSD Com in now you don't have no because you can't pay for anything nomore 💔 😔 like me

  13. Good Sir & Ma'am,

    Not to be a Donnie Downer, and I say this with all due respect, but if you are buying and/or leading others to buy Cash Value / Whole Life Insurance you don't understand life insurance at all. At the very least, you are either willfully ignorant or suffering from a bout of profit/purpose induced ignorance.

    For everyday people, there are next to NO cases where cash value life insurance is the right thing to purchase for a family's protection. All of the leading financial minds, think Dave Ramsey or Suzie Orman have settled this debate years ago now.

    As they have taught Term is always the right choice. An even better concept was put into play 45 years ago this month when Mr. Arthur L. Williams brought his Buy Term & Invest the Difference philosophy to the market.

    As a 27 year Insurance / Investment professional, I have never seen a single case where a cash value program beat BTID. It just has never happened.

    To give you the benefit of the doubt, you may be well intentioned and softly spoken & easy to listen to even, but you're giving bad advice.

    Sure having something, anything beats having nothing – and I say that on both the insurance and investment side of things. I will also applaud having any plan to create family & generational wealth over no plan, especially as African-Americans. But once we get moving in that direction, we can benefit even more so from accurate knowledge and a proven plan.

    Of course, if you compete against the like of nothing, this will sound like a winning plan. And, of course if you set up against a short term policy, your cash value theory looks great. But put against a longer Term program, say 25 years or even a 35 year policy and you put all that savings from the insurance part of the program into even a proper mutual fund program, your plan wouldn't stack up.

    Term always gives the family the ability to afford more insurance starting out and the mutual funds will give more true investment returns in the long run.

    Not to mention with all of the investment options beyond mutual funds that exist today, your theory could never stack up. It's just math.

    Neither to mention, all of crap cash value (supposed investment grade) policies that ultimately eat up all the premium & cash infusions and collapse without value on both the insurance & investment sides. In the plans I've come across over the years, usually this happens around the 7 to 10 plan year.

    I've seen it for 27 years. I've also had opposing agents try to sale the concept of putting even more money (Larger Cash Infusions) in the program to try to head off this collapse event.

    Either you don't know that at all, or you have heard it and bought the "More Money will Make It a Sustainable Program" con.

    It won't. I've also heard the 'All the Other Uses" argument, and the "It's better for people with Greater Financial Means" crap.

    None of these approaches will never be better, financially & mathematically than Buying the right Term Policy & Investing the Difference outside of the policy.

    The BTID approach always offers more insurance protection upfront (affordably) and more R.O.I. / Higher investment account values on the back end, and isn't that the goal of all this?

    Going your way, I've seen many cases where the consumer would have better off putting their money under their mattress.

    So I say "Be Careful" with this advice to anyone listening. Look up Dave Ramsey or Suzie Orman. They both have several books you can get for next to nothing and get better, truer advice than this offering.

    Google search Art L. Williams, learn his philosophy of BTID. You'll thank yourself.

  14. I have benefited very well from my policy. Was able to get $7000 deducted from my face amount when I needed emergency money. I still have my policy and building my cash value back up.

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