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Without talking about the rates too much, what I like is the idea that you can save and spend the same dollar twice.
That is the part of the pitch I do not understand. I am not saving and spending the same dollar. I have an obligation to pay back the dollar I spent (or it's not saved).
By that rationale, this is nothing unique to life insurance, it applies to all leverage. Instead of pulling money out from my money market account for a car, I could buy the car with a private car loan and invest that same money into something else for a return above the car loan rate. That really isn't "saving and spending the same dollar". That is leverage.
I understand some of the potential choices life insurance can give you that would not apply to a traditional loan, I just don't buy the "saving and spending the same dollar" concept as more than sales smoke. I am open to being proven wrong, Larry made some good point earlier that I had not taken into account.
That is the part of the pitch I do not understand. I am not saving and spending the same dollar. I have an obligation to pay back the dollar I spent (or it's not saved).
By that rationale, this is nothing unique to life insurance, it applies to all leverage. Instead of pulling money out from my money market account for a car, I could buy the car with a private car loan and invest that same money into something else for a return above the car loan rate. That really isn't "saving and spending the same dollar". That is leverage.
I understand some of the potential choices life insurance can give you that would not apply to a traditional loan, I just don't buy the "saving and spending the same dollar" concept as more than sales smoke. I am open to being proven wrong, Larry made some good point earlier that I had not taken into account.
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