Life Insurance Vs. Savings Plan?

Discussion in 'Life Insurance Forum' started by Mike Siegal, Dec 9, 2016.

  1. Mike Siegal
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    Mike Siegal Super Genius

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    Hi Friends,

    Ok, go easy on me as I am newly licensed and trying to educate myself on Different types of insurance and top selling points.

    A friend of mine said "a whole life policy" is better than a savings account??? Since i was studying MA, lately, his statement threw me for a loop.?

    I tried doing some research on google but come up with Dave Ramsey (who i don't trust) and various other sites like bankrate.com, etc.

    I thought i would asks the pros for a general synopsis of how a whole life policy is better than a savings plan.

    I know you have to make payments to maintain your whole life policy, so, if you miss a payment, i'm pretty sure the plan is cancelled (after a period of time).

    • Can someone share with me, the basic bullet points on why a whole life policy is better than a savings plan?

    Anyway, i sure appreciate it and
    Thanks for your input!
     
  2. TampaHound
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    I guess on how your defining "savings plan". I could make an argument that life insurance should be part of everyone's plan for the future.

    I could even see an argument for using a whole life policy instead of a traditional bank savings acct. However there are much better options than that.
     
  3. DHK
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    DHK Guru

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    This is generally what you need:

     
    Last edited by a moderator: Oct 10, 2017
  4. Todd King
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    I think what your friend is really trying to say is if someone uses a savings account and they die earlier than expected, they won't have enough in that savings account to cover everything. In other words, if they save $50 per month it will be quite some time before they would save the same face amount that $50 per month in an insurance policy would get them.

    You really can't compare them because they should be used in different ways, for different reasons. A client should really have both.
     
  5. VolAgent
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    Life insurance is better and worse than a savings plan. It just all depends on what aspect you are comparing and what matters to you.
     
  6. BYSFG
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    Different means for different purposes.
    I know DHK has some good posts about it on the forums.

    BNTRS also has a blog (I believe its a blog) that also has some good information on the working/concepts of what youre looking for. His blog has helped me greatly when I first started out. Podcasts are pretty informative as well and something good to listen/have in the background if the situation permits.

    The Insurance Pro Blog

    Then again the video DHK posted may answer majority of your questions already.
     
  7. Mike Siegal
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    Mike Siegal Super Genius

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    Ok...thanks everyone for your input!
     
  8. Cornelius
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    Do a you tube search on being your own bank.
     
  9. pfg1
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    It is better... but its not either/or...you need both. Saving much of your money only in a savings account is not a great idea. Having an adequate amount in a savings account (emergency fund) is a good idea, but beyond that you should be saving in other vehicles. Life insurance would be (and is) my first choice.
     
  10. LostDollar
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    Life insurance, savings plan

    Depends on what life circumstances allow the saver/policy holder to retain.
     
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