Considering a Whole Life Policy

[Mehler91]

Let's all be very real, 99% of people who buy in to the buy term and invest the difference do not invest the difference.

I had an experience once with a Primerica agent out of Virginia that was meeting with a couple of my clients trying to replace some whole life I sold them with a term policy that was loaded up with riders and was $250 less per year than the whole life they had bought from me 3.5 years earlier.

She was trying to spin investing $250 per year for these people and how it was going to outperform the cash value accumulating within a $275,000 whole life policy. It was ludicrous and about halfway through the presentation, I stood up, shook her hand and told my clients they were crazy to consider this and if they wanted to trade in a Cadillac for a pinto, then they had my blessing.


Needless to say, I never received the replacement notice from Primerica....

 

[DHK]

"Buy Term and Invest the Difference" never was and never will be a 'planning strategy'. It is a replacement and sales tactic of those who don't know or understand the power of permanent life insurance.

Think about it: Who would offer this advice? Someone with COMPETING advice against buying a whole life policy! (Say someone who is offering securities... or a bridge?)

That's how they knew there was a 'difference' to begin with! Otherwise, the advice is to just buy terminating insurance. Which, if that's what your budget allows, is better than having no insurance at all whatsoever.

 

[BNTRS]

You could also buy a $1,000 beater and invest the difference.

Or eat by candle light (it's much more romantic after all) and invest the difference saved on the light bill.

Wait to shower until it rains outside...

Eat only bologna and mustard...

Take the bus...

Only travel if you can buy an unused seat the day before or day of the flight if its really cheap...

...etc.


And invest the difference.


As DHK pointed it it's primarily a replacement pitch. Or it's a way for investment salespeople to find more money to use so you can "invest" with them.

 

[Mehler91]

You could also buy a $1,000 beater and invest the difference. Or eat by candle light (it's much more romantic after all) and invest the difference saved on the light bill. Wait to shower until it rains outside... Eat only bologna and mustard... Take the bus... Only travel if you can buy an unused seat the day before or day of the flight if its really cheap... ...etc. And invest the difference. As DHK pointed it it's primarily a replacement pitch. Or it's a way for investment salespeople to find more money to use so you can "invest" with them.

Love this response, lol!

 

[Deepsea]

Pay annually and save money.