Dave Ramsey hates whole life insurance ...(does he know Anything about Insurance) ?

[DHK]

You may find this PDF helpful and remind you of your pre-licening training on how life insurance works. It's "A Lesson in Life Insurance" from the VSA.

 

[tippingpoint]

That's a nice brochure!

So the cash account is treated differently by companies and policies. I can't see how it could be treated much differently if companies are to be competitive. And if the cash account is a "reserve" account of the death benefit, beneficiaries MAY receive more than the face value depending on whether or not the death benefit has been paid in full and, if the policy allows. Correct?

 

[DHK]

That's a nice brochure!

So the cash account is treated differently by companies and policies.

Yes, WL has a fixed interest rate + non-guaranteed dividends. Costs of insurance are bundled in the guaranteed premiums.

UL has current interest rates... but an increasing cost of insurance.

IUL has performance risk based on the index segments chosen... and an increasing cost of insurance.

VUL has stock market risk based on the asset allocation chosen... and an increasing cost of insurance.

I can't see how it could be treated much differently if companies are to be competitive.

Depends on the type of company, type of policy, and premium design for the policy.

And if the cash account is a "reserve" account of the death benefit, beneficiaries MAY receive more than the face value depending on whether or not the death benefit has been paid in full and, if the policy allows. Correct?

Depends on the timing you're talking about.

The word you're missing is 'initial' face amount. Yes, many policies have increasing death benefits based on the performance of the cash values. Over time, it can increase beyond the initial face amounts.

Other than non-participating whole life (which is primarily a final expense product), I've never seen a policy have higher cash values than the death benefit.

This video by Guy Baker is a great one:

 

[DHK]

Rumor says Dave was an A.L. Williams recruit for awhile. The crusade is still on even though term has caught on and has become way more competitive than it was in 1977.

I saw this a while ago and since this thread was bumped up, I thought I'd share:

 

[Allen Trent]

I saw this a while ago and since this thread was bumped up, I thought I'd share:

aka, they are not a paid sponsor nor do they pay to be endorsed, therefore they dont receive the Ramsey love

 

[toolbelt]

 

[toolbelt]

I saw this a while ago and since this thread was bumped up, I thought I'd share:

Dave forgets to mention his earlier radio show co-host/partner was Roy Matlock Jr (of A. L. Williams), who was still with Primerica up to a year ago.

 

[ValeRosso]

Dave either isnt too bright, or hes pitching products on his audience for money. He still believes people can expect 12% per year if invested in the stock market, hates whole life, but on the other hand sells life insurance leads, and pitches his pro advisors HARD.

 

[Lloyds of Lubbock]

When you are an unlicensed financial entertainer, you can do a lot that a legitimate cannot.

 

[marindependent]

He owns a large 10 pay life policy with Guardian. I wish I can prove it, but I know agents who know the agent that sold the policy.

DR is advocating for his listeners who are largely broke and living paycheck to paycheck. In that case, term is the right way to go at that stage of financial development.

Well Said DHK. WL for very wealthy folks is a totally different decision than folks living paycheck to paycheck.