Why Most financial experts are not fans of Whole Life Insurance

Most financial “experts” are not fans of Whole Life Insurance, and it makes perfect sense why. The problem with financial “experts” is that most offer their followers one-size-fits-all solutions.

Life Insurance was NEVER supposed to be a one-size-fits-all solution; it should be noted that Life Insurance started off as only term life insurance; Whole Life Insurance was created via CONSUMER DEMAND.

The entire profitability of the insurance industry revolves around the insurance companies never having to send their clients a penny. With term life insurance, the reason why premiums/monthly payments are often so cheap is because over 95% of term insurance purchasers will never get one cent back from the insurance company.

If you’re smart enough to purchase life insurance, you’re smart enough to VALUE your life. Meaning that you typically will outlive your TERM insurance policy. When it comes to whole life insurance, it’s definitely geared more towards the BUSINESS-minded individual, and this, oddly enough, is why a lot of successful financial experts who have accumulated a lot of money may look down on whole life insurance.

Because if, let’s say, you’re a millionaire financial “expert” giving out “expert” advice on how to get out of debt and cut back on expenses, well, then a Whole Life Insurance policy could be damaging to a person’s cash flow.

If let’s say a person is spending $1000 per month on a whole life policy with a $500,000 death benefit, and the equivalent term insurance policy for $500,000 is $170 dollars, one could argue that the whole life insurance policy is stealing from you, plus the person might be in debt, and the cost of this whole life policy is taking money that could be used to pay down debt.

You can see where the “buy term, invest the difference in mutual funds” crowd is coming from. But, that’s why when I’m talking to my clients, I make sure that I get to know them and their needs first because one of the reasons I may recommend to a client to purchase a whole life insurance policy with a term rider is because Whole life policies can be CUSTOMIZED.

If a whole-life customer, for example, purchases a whole life insurance policy with paid-up additions along with the term life insurance rider, well then this client, when they’re in a better position, can get rid of the term insurance rider and purchase more insurance in their policy without having to reapply for life insurance at a potentially much higher price.

You see, if you’re already in debt, and you purchase TERM insurance without whole life insurance, you could potentially be setting yourself up for even more debt down the line in your life. The older people get sicker, the more likely they are to get sick and potentially need some money in reserve.

With Whole Life Insurance, not only do the policies recommend having savings, but they also allow the client to borrow money from the insurance company. Now, this sounds like a horrible idea to people who want to get out of debt; however, whole life insurance loans are collateral loans, and the collateral of these loans is based on the whole life insurance policy, and as long as you pay your whole life policy annually, you’ll never have to worry about the policy loan defaulting.

Meanwhile, with every payment you make to your whole life insurance contract, you’re getting more access to capital. The reason why whole life insurance contracts cost so much more money than term insurance is because of the LIVING benefits. This simple concept often flies over people’s heads, typically because they don’t have an Agent like Romone to break down the specifics for them.

Call or text Romone for more information

Contact Romone: (416) 705-0892
You can also use the contact form for more information.

Whole Life Insurance is for your WHOLE LIFE, meaning that it’s guaranteed to pay you something while you’re alive; with term life insurance, you only get paid if you die.

Some people use their whole life insurance contract to PAY OFF THEIR MORTGAGES. With whole-life insurance policy loans there is no payment schedule, meaning that you decide how much to pay on you whole life policy loan, which fees up a lot of cash flow if you’re in dire straits. So if, let’s say, you have a $500,000 policy loan that you pay $1000 a month for, and you take out a $300,000 policy loan to pay off your mortgage, your new MANDATORY monthly mortgage price is $0.

You have to remember that you’re actually doing the insurance company a favor by taking out a policy loan because if your Policy is worth $500,000(ofcourse it’s accumulating interest, contact Romone to learn how this works) and you borrow $300,000, the insurance will only be obligated to pay your beneficiary $200,000.

People tend to forget that this is a WHOLE LIFE insurance contract, meaning that your beneficiary is GUARANTEED to get paid as long as you pay your premiums. This is why people like myself are DEDICATED to paying our whole life insurance contracts.

If Whole Life Insurance offered no value, nobody would buy them; yes, whole life insurance is absolutely expensive, but you get what you pay for. If you want TEMPORARY TERM insurance, well, then it’s going to be cheap, and the Insurance is only going to insure you if your likelihood of dying is very low;

By sending the insurance company more money with Whole Life Insurance, they’re showing you dedication to yourself and your family, the Life Insurance company rewards you with LIVING benefits.

It’s a very simple concept, however with that said I don’t think these money “experts” are being malicious when they call Whole Life Insurance a scam, the truth is most people have no idea how Whole Life Insurance works, and why would they if nobody explains it to them in a easy to understand format.

Money means different things to different people, and this is why I don’t believe in one-size-fits-all approaches to finances. When you make Romone your agent, I will listen to you and base my decisions on what you tell me. There will be instances in which I may recommend you take a Term Life insurance plan. But I will always make sure that, as my client, you understand how Whole Life Insurance works and why people like myself love our Whole Life Insurance contracts.

Call or text Romone for more information

Contact Romone: (416) 705-0892
You can also use the contact form for more information.