Anyone that listens or follows Dave Ramsey knows that Whole Life Salesman are the "scum of the earth." Pretty harsh words coming from a self described God fearing man. WL salesman are just as likely to be scum as any Financial Planner or Advisor. In fact, they are no more likely to be scum than a loan officer or real estate agent or RADIO HOST at that matter. WL salesmen simply have a different point of view of investing.
So what do you do when the WL salesmen say Dave is ignorant and Dave says they are scum? Simple. Educate yourself and make your own decisions. The #1 thing I don't like about Dave is that he has a "one size fits all" strategy. In reality every person's financial situation is different, and there is no "one size fits all" answer.
Term Life Insurance
- no cash value
- limited coverage time frame
- tax deferred growth
- tax free withdrawals (if done correctly)
- lenders count CV (cash value) as an asset
- IRS does not count CV as an asset
- CV is protected against law suits and bankruptcy
- expensive at first
- death benefit for life
- CV can be used to pay premiums temporarily or indefinitely
- additional contributions are required to maximize CV growth
- CV can be used as collateral for a loan
You might be wondering if I am a WL salesman? I am not. I simply have done my research. Term and WL insurance have their uses. In order for Whole Life to be used correctly it must be designed correctly. I have to admit that most agents don't understand how to properly design a policy. If interested I can provide some references.
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