Is Term Life Insurance Better Than Whole Life Insurance?
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Don’t waste money on whole life insurance. Protect your family with term life insurance: https://goo.gl/LFpCEj
SUMMARY
In this video, Dave answers Ray’s question from Facebook. Ray asks, “Why term life insurance instead of whole life insurance? What is the difference?”
Term life insurance is just like any other insurance. You pay for insurance, and your beneficiary gets your money if you die. Cash value insurance, however, doubles as an insurance policy and an investment vehicle.
Say your term life policy costs $5. The same amount of coverage for whole life would cost you $100: $5 for the insurance and a $95 premium. That’s 20 times more expensive for the same amount of insurance!
Let’s say you want to close your whole life policy. Not only is the rate of return on your money so low that it won’t even allow for growth, but you could even have to borrow your own money that you paid and then pay interest to the insurance company. Additionally, when you die, your beneficiary will receive the face value of your policy, but all the cash you saved up is kept with the insurance company. It's one of the worst financial products in the world!
Dave always recommends term life insurance. Get 10–12 times your income and cover the ones you love.
RESOURCES
How much term life insurance do I need? Listen here: https://www.daveramsey.com/askdave/insurance/how-much-term-do-i-need
Hear more about the tax implications of cashing out whole life: https://www.daveramsey.com/askdave/taxes/8273
Thinking of switching to term life insurance? Read these term life mistakes to avoid: https://www.daveramsey.com/blog/5-term-life-insurance-mistakes
THE DAVE RAMSEY SHOW
The Dave Ramsey Show channel will change the way you experience one of the most popular radio shows in the country! Watch video profiles of people just like you as they call in from Ramsey Solutions to do their debt-free scream live. The show streams live on YouTube M–F from 2–5pm ET! Watch here: https://www.youtube.com/channel/UC7eBNeDW1GQf2NJQ6G6gAxw
Did you miss the latest Ramsey Show episode? Don’t worry—we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: https://www.youtube.com/c/TheRamseyShowEpisodes?sub_confirmation=1
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
https://www.youtube.com/c/TheRamseyShow?sub_confirmation=1
• The Ramsey Show (Full Episodes): https://www.youtube.com/c/TheRamseyShowEpisodes?sub_confirmation=1
• The Dr. John Delony Show: https://www.youtube.com/c/JohnDelony?sub_confirmation=1
• The Rachel Cruze Show: https://www.youtube.com/user/RachelCruze?sub_confirmation=1
• Anthony ONeal: https://www.youtube.com/user/aonealministries?sub_confirmation=1
• The Ken Coleman Show: https://www.youtube.com/c/TheKenColemanShow?sub_confirmation=1
• The Christy Wright Show: https://www.youtube.com/c/ChristyWright?sub_confirmation=1
• EntreLeadership: https://www.youtube.com/c/entreleadership?sub_confirmation=1
SUMMARY
In this video, Dave answers Ray’s question from Facebook. Ray asks, “Why term life insurance instead of whole life insurance? What is the difference?”
Term life insurance is just like any other insurance. You pay for insurance, and your beneficiary gets your money if you die. Cash value insurance, however, doubles as an insurance policy and an investment vehicle.
Say your term life policy costs $5. The same amount of coverage for whole life would cost you $100: $5 for the insurance and a $95 premium. That’s 20 times more expensive for the same amount of insurance!
Let’s say you want to close your whole life policy. Not only is the rate of return on your money so low that it won’t even allow for growth, but you could even have to borrow your own money that you paid and then pay interest to the insurance company. Additionally, when you die, your beneficiary will receive the face value of your policy, but all the cash you saved up is kept with the insurance company. It's one of the worst financial products in the world!
Dave always recommends term life insurance. Get 10–12 times your income and cover the ones you love.
RESOURCES
How much term life insurance do I need? Listen here: https://www.daveramsey.com/askdave/insurance/how-much-term-do-i-need
Hear more about the tax implications of cashing out whole life: https://www.daveramsey.com/askdave/taxes/8273
Thinking of switching to term life insurance? Read these term life mistakes to avoid: https://www.daveramsey.com/blog/5-term-life-insurance-mistakes
THE DAVE RAMSEY SHOW
The Dave Ramsey Show channel will change the way you experience one of the most popular radio shows in the country! Watch video profiles of people just like you as they call in from Ramsey Solutions to do their debt-free scream live. The show streams live on YouTube M–F from 2–5pm ET! Watch here: https://www.youtube.com/channel/UC7eBNeDW1GQf2NJQ6G6gAxw
Did you miss the latest Ramsey Show episode? Don’t worry—we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: https://www.youtube.com/c/TheRamseyShowEpisodes?sub_confirmation=1
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
https://www.youtube.com/c/TheRamseyShow?sub_confirmation=1
• The Ramsey Show (Full Episodes): https://www.youtube.com/c/TheRamseyShowEpisodes?sub_confirmation=1
• The Dr. John Delony Show: https://www.youtube.com/c/JohnDelony?sub_confirmation=1
• The Rachel Cruze Show: https://www.youtube.com/user/RachelCruze?sub_confirmation=1
• Anthony ONeal: https://www.youtube.com/user/aonealministries?sub_confirmation=1
• The Ken Coleman Show: https://www.youtube.com/c/TheKenColemanShow?sub_confirmation=1
• The Christy Wright Show: https://www.youtube.com/c/ChristyWright?sub_confirmation=1
• EntreLeadership: https://www.youtube.com/c/entreleadership?sub_confirmation=1
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