Did you know, in standard whole life insurance policies, the insurance company retains the accumulated "cash value" upon the insured's death, paying only the fixed "death benefit" to beneficiaries?
In a recent radio show, financial author and radio host Dave Ramsey says:
"The 'whole life cash value policy' is the biggest ripoff in the financial planning world. I mean, it's like the payday lender to the middle class."
" ...When you die, they keep your money, because you've been paying extra for this savings account that you don't get. They only pay the face value when you die. It's that simple - payday lender (takes advantage of) poor people, right? And these people (take advantage of) you. And it's a horrible rate of return."
"And so get some inexpensive term insurance while you need insurance. And put your money, your investment money in good investments that go up and they don't keep it when you die. And then you're not building a building in the skyline for somebody else. Where you think those life insurance buildings came from? They didn't come from Santa Claus... the same place those banks came from. They didn't come from Santa Claus."
I've had several appointments recently where the folks we were trying to help had questions about a life insurance policy they had been keeping for years.
If you have a "Whole Life" Insurance policy, please call me to review it immediately to see if it is costing you more money than it should.
Listen below as Dave describes the details on how a whole life insurance policy works:
Click below for episode:
Sources: Dave Ramsey
Ramsey - Why Whole Life Insurance Policies are Trash:
https://podcasts.apple.com/us/podcast/why-whole-life-insurance-plans-are-trash/id1117556964?i=1000627701973
https://podcasts.apple.com/us/podcast/dave-argues-with-a-whole-life-insurance-salesman/id1117556964?i=1000671752866