Life Insurance

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bos

Legend
Staff member
Apr 10, 2006
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You just had to get political, didn't you? :wink:

Have your requests put in your will. You do have one of those, right?


I have to do this as well. I noticed there are some doityourself type Will sites, like legalzoom. Anyone else use one of these type of things?
 

uthaman

Active Member
Oct 18, 2006
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Des Moines
Term all the way. I have a Math degree, I know how to add. Anyone who tries to talk you into "perm" life either (a) is an insurance agent, or (b) doesn't really understand what they bought.

If you buy term and invest the difference between term and perm I GUARANTEE you will have more coverage and end up with more money at the end of the term.
 

Covenant Clone

Well-Known Member
Aug 30, 2006
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I would definitely say term...I was an insurance agent for a while and they pushed me to sell whole life or variable life all of the time regardless (because the commissions were better) but there is a lot of small print in every whole life policy that they fail to mention to you when you buy it (like you don't get to keep the cash value if you die). You are better off almost 100% of the time, buying a cheaper term policy (you can get a 35 year level term policy if you are still pretty young) and just save the difference in cost in your 401K or Roth IRA. You will be money ahead in the end. And this coming from a guy that used to sell the stuff.

The only situation a whole life or variable life policy makes sense is using it for estate planning.
 

4VR4CY

Well-Known Member
Aug 28, 2007
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You sound like Primerica uthaman. Most financial profesisonals do not agree with this theory. I am not trying to make any money off of anyone and I say get an evaluation and do part one, part another.

BTW - stay away from Primerica everyone. Their average agent has no experience and there average turn-a-round is less than 1 year.
 

Cyclonesrule91

Well-Known Member
Apr 10, 2006
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Oh, perm (whole) you can use as an asset when taking out a loan, etc. It gains in value over your life. Term is more expensive the older you get and usually resets in price every year to every 5 years. If you talk to a good financial adviser, they will do a whole survey for you and let you know how much you may need (make sure they go though this with you or you might be oversold by some) and give you options based on the amount per month you can afford to pay.

Good financial decision depends on who you talk to. If you get a $500,000 policy, it costs you over 2X as much to have whole life vs term. When you die, your beneficiaries get the $500,000 regardless of what you paid in......Advantage term

They say you build cash value in your whole life policy so you can borrow against it when you get a certain value in the policy and then pay yourself interest on the loan. What's the difference if you get the same amount if you die. It doesn't matter how much cash value you have, you will never get more then what the policy says it's going to pay you......Advantage term EDIT: add in the fact that, if you decide to take out a loan against your cash value and you die, your family gets the death benefit minus the unpaid loan balance minus interest.....

Of course a financial planner is going to tell you that whole life is better. They get a bigger percentage of the premiums when they sell whole life.

I had whole life for a few years until I sat down and looked at what you get with whole life vs term and it suddenly becomes a no-brainer. Since a whole life policy will easily cost you over 2 times the rate of term for the same death benefit, why would you pay over 2 times as much in premium to get the same amount of insurance???????

The only advantage to whole life is, in certain instances after you build so much cash value you don't have to pay anymore premium because your cash value interest will pay the premium. I say who cares since you have to pay over 2x as much premium for 15-20 yrs to get that deal anyway and how much more did you spend to get to that point??????/

Unless I understand whole life wrong vs term, the only benefit of whole life vs term is to the person selling the policy...:yes:
 
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trueclone2

Active Member
May 18, 2007
219
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Ames
Term all the way. I have a Math degree, I know how to add. Anyone who tries to talk you into "perm" life either (a) is an insurance agent, or (b) doesn't really understand what they bought.

If you buy term and invest the difference between term and perm I GUARANTEE you will have more coverage and end up with more money at the end of the term.

You are 100 percent correct. I am an agent and you should ONLY buy TERM and invest the difference. A Shoe box will usually outperform most cash value. And 99 percent of the time if you die tomorrow only the insurance or the insurance amount goes to the family the cash value goes back to the insurance company. DO YOUR RESEARCH. The life insurance industry also can not be investigated by the Fed. Gov. due to a law passed in the 70's.
 

Covenant Clone

Well-Known Member
Aug 30, 2006
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Ha...I can't tell you how many times I used that line when I sold that stuff. Believe me man, whole life/variable life is a ripoff. Read your policy, there is some stuff in there between the lines that would make you rage if you would have known it before you bought it. Scott got paid...that is why he sold you whole life.


I have whole life (perm). It is the difference between renting (term) vrs buying (whole/perm). I use:

Scott Schmailzl, LUTCF
New York Life Insurance Company
4900 University Ste.225
West Des Moines, IA 50266
Business Phone: 515-453-1356
Cell Phone: 641-780-4740
 
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trueclone2

Active Member
May 18, 2007
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Also after a period of time you should not need life insurance any more. Why pay for something you don't need anymore.

For instance if you have a policy for $200,000 and your assets are now $250,000 do you really still need life insurance? Aren't you self insured at that point?

If nothing else get a Financial Needs Analysis done to confirm how much you need and if you still need it.
 

4VR4CY

Well-Known Member
Aug 28, 2007
3,474
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Ankeny, IA
Ha...I can't tell you how many times I used that line when I sold that stuff. Believe me man, whole life/variable life is a ripoff. Read your policy, there is some stuff in there between the lines that would make you rage if you would have known it before you bought it. Scott got paid...that is why he sold you whole life.

I am a WOman. I still believe that buying a whole life policy at a younger age is in my best interest. Maybe not your best interest, but mine.

Scott did not get paid. I bought this policy from myself for myself.

Edit: Also, there are studies that women feel more comfortable with whole life and men feel more comfortable with term life. Just a fun fact.
 
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Covenant Clone

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Aug 30, 2006
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I would disagree with you that MOST financial professionals don't agree with this theory. The good ones do what is best for their clients even if that means they won't make as much money on the premium. I do agree that be careful of Primerica. There are some good agents out there (ones that have been in the business for a while) but most of them are very new and don't know much and there turnover is very high. But they do have a very good term product and they have a very good AM Best rating, so if you know a good agent, getting a quote would be a good idea. Otherwise there are plenty of good insurance companpies out there that sell a very good term policy.


You sound like Primerica uthaman. Most financial profesisonals do not agree with this theory. I am not trying to make any money off of anyone and I say get an evaluation and do part one, part another.

BTW - stay away from Primerica everyone. Their average agent has no experience and there average turn-a-round is less than 1 year.
 

jmb

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Apr 12, 2006
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The raging debate over term vs. whole life - MSN Money

Fool.com: Whole vs. Term Life Insurance [Fool's School Daily Tip] July 25, 2002

There are different opinions on 1,000s of websites. So, I guess the answer must be, do whatever is best in your mind.

Anyone that recommends a product without knowing your situation is foolish and practicing dangerously. Example some bloak on a chat board recommends that you get whole life(which is CLEARLY more expensive) and says so because of product features is crazy! How can anyone recommend a product without knowing your budget, your goals, your obligations, your debts, your needs etc. SILLY!!!!! Furthermore, what if said person takes said advice buys the wrong product and underinsures themselves and dies----oops.

Most academics will tell you that term is the answer for pure risk managment. Perm. policies are typically used for estate and wealth managment issues. Typically most academics(and those not beholden to one life company) will tell you save in a chasis designed for functional returns and not a life policy. My recommendation is to seek out qualified professionals that don't make a big pop when you buy a policy from them. In fact ISU has a financial planning and counseling center on campus that you can go to, the guy that runs it is well respected in the profession...and doesn't make commission to help you out.

Life policies for saving are typically the last resort-not the first.

J-CFP(R); MS-Personal Financial Planning.
 

Cyclonesrule91

Well-Known Member
Apr 10, 2006
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I am a WOman. I still believe that buying a whole life policy at a younger age is in my best interest. Maybe not your best interest, but mine.

Scott did not get paid. I bought this policy from myself for myself.

Edit: Also, there are studies that women feel more comfortable with whole life and men feel more comfortable with term life. Just a fun fact.

Cash value in a whole life policy means nothing if you die because the insurance company keeps your cash value instead of paying you the death benefit + your cash value. How can you be more comfortable with that?????

If your young and have a family and are in any health at all, term insurance is very low cost while it gives you the death benefit that you are comfortable with. Add in the fact that, regardless of if you get term or whole life, you are getting the same check in the event that your pass away.

Maybe that's why women are more comfortable with whole life since they are not so good at math.....:wink::wink: Joking of course since I know my wife will read this.
 

trueclone2

Active Member
May 18, 2007
219
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Ames
You sound like Primerica uthaman. Most financial profesisonals do not agree with this theory. I am not trying to make any money off of anyone and I say get an evaluation and do part one, part another.

BTW - stay away from Primerica everyone. Their average agent has no experience and there average turn-a-round is less than 1 year.


They are a good company and they are one of 7 companies that belong to IMSA (Insurance Marketplace Standards Association) for thier standards. Also if you are an agent it is not legal for you to bad mouth another company. You just put your license at risk by doing so.
 

4VR4CY

Well-Known Member
Aug 28, 2007
3,474
51
48
Ankeny, IA
I posted that I am not a practicing agent at this time. Also, I posted that If you talk to a good financial adviser, they will do a whole survey for you and let you know how much you may need (make sure they go though this with you or you might be oversold by some) and give you options based on the amount per month you can afford to pay.

Nuff said. You guys can argue over this. You are putting in your opinion as well to a person whom you do not know. If you are practicing agents, maybe you are just trying to get his business? :biggrin:
 

Covenant Clone

Well-Known Member
Aug 30, 2006
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Sorry about that, I couldn't tell from your screen name. I shouldn't have been gender specific. I have sold my fair share of whole life, I even owned a policy at one time so I wouldn't be a hypocrite to my clients, but no matter how you slice it I guarantee if you took extra premium you are paying for something you don't even get to keep if you die and invest it in a conservative investment you would be money ahead. I don't want to step on anyone's toes but those are just the facts.

QUOTE=4VR4CY;201037]I am a WOman. I still believe that buying a whole life policy at a younger age is in my best interest. Maybe not your best interest, but mine.

Scott did not get paid. I bought this policy from myself for myself.

Edit: Also, there are studies that women feel more comfortable with whole life and men feel more comfortable with term life. Just a fun fact.[/QUOTE]
 

Covenant Clone

Well-Known Member
Aug 30, 2006
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Nuff said. You guys can argue over this. You are putting in your opinion as well to a person whom you do not know. If you are practicing agents, maybe you are just trying to get his business? :biggrin:[/QUOTE]

Nope...like I said earlier I no longer even have an insurance license. I am completely out of the insurance industry but I know first hand what that stuff is all about.
 

trueclone2

Active Member
May 18, 2007
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Sorry about that, I couldn't tell from your screen name. I shouldn't have been gender specific. I have sold my fair share of whole life, I even owned a policy at one time so I wouldn't be a hypocrite to my clients, but no matter how you slice it I guarantee if you took extra premium you are paying for something you don't even get to keep if you die and invest it in a conservative investment you would be money ahead. I don't want to step on anyone's toes but those are just the facts.

Thank you for also stepping up and telling the truth.
 

jtaconutz

Member
Feb 1, 2007
533
21
18
With your mom
Term all the way. I have a Math degree, I know how to add. Anyone who tries to talk you into "perm" life either (a) is an insurance agent, or (b) doesn't really understand what they bought.

If you buy term and invest the difference between term and perm I GUARANTEE you will have more coverage and end up with more money at the end of the term.


A big DITTO to the uthaman statement.
 

Cyclonesrule91

Well-Known Member
Apr 10, 2006
5,403
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Waukee
I have never sold life insurance and never plan to. I just did a whole lot of research about the two types of insurance and know beyond a shadow of a doubt that whole life insurance policies are only good for the companies selling the product and not for the policy owner. If I can help someone steer clear of the bad decision I made at the time, I will do what I can.