Whole Life Insurance a "scam"

[Klutch]

If any of you listen to Dave Ramsey, you'll know he's no fan of Whole Life Insurance, calling it a 'scam' because

1. Much higher per K than term
2. You won't get the death benefit & the csv
3. Many times the premium will exceed the face amount

How would you respond?

Edit: for the record I sell SIWL every day of the week and I have my own responses to the above points, but I'm curious as to what you guys think.

 

[luvfe]

In a perfect world with people who managed their money in a responsible manner Dave Ramsey's advice should be accurate. He makes one big assumption. People want to and will act responsible. My reply is simply if someone does not have their act together by 65 or 70 they need whole life. If someone really is a good money manager term and invest would normally be a better strategy. Now how many people per week do u see who r good money managers?

 

[John Galt]

If any of you listen to Dave Ramsey, you'll know he's no fan of Whole Life Insurance, calling it a 'scam' because

1. Much higher per K than term
2. You won't get the death benefit & the csv
3. Many times the premium will exceed the face amount

How would you respond?

Edit: for the record I sell SIWL every day of the week and I have my own responses to the above points, but I'm curious as to what you guys think.

My response is....the only people who listen to them are the ones I'm gonna pitch term to anyway. FE siwl people don't listen to Dave Ramsey. My other response would be, "hey Dave, Mildred doesn't have a pot to piss in, she never took out a policy when she was young, she is now 65, can't qualify for a decent term product and doesn't have any savings for burial or cremation. Instead of making her kids pay for it so I'll sell her a $5k policy"

 

[indiana260]

If any of you listen to Dave Ramsey, you'll know he's no fan of Whole Life Insurance, calling it a 'scam' because

1. Much higher per K than term
2. You won't get the death benefit & the csv
3. Many times the premium will exceed the face amount

How would you respond?

Edit: for the record I sell SIWL every day of the week and I have my own responses to the above points, but I'm curious as to what you guys think.

2 things

1. Dave is talking to younger people with short term needs. Term is good for a temporary situation like a mortgage or child education. You may need 300k but could never afford whole life nor would you need it forever. You do have a permanent need for a much smaller amount to cover your final expense s

2. Dave also suggests to buy term and invest the difference. A couple of things there, you don't have the money or time for this to make sense. And furthermore, let's be honest, what everyone does is but term and SPEND the difference

 

[WGO]

I did hear Dave one night tell a senior that it looked like they had no choice for a funeral except a final expense policy.

 

[Klutch]

I did hear Dave one night tell a senior that it looked like they had no choice for a funeral except a final expense policy.

Did he say whole life explicitly, or final expense?

 

[GAInsuranceGal]

If any of you listen to Dave Ramsey, you'll know he's no fan of Whole Life Insurance, calling it a 'scam' because

1. Much higher per K than term
2. You won't get the death benefit & the csv
3. Many times the premium will exceed the face amount

How would you respond?

Edit: for the record I sell SIWL every day of the week and I have my own responses to the above points, but I'm curious as to what you guys think.

If someone said this to me that is over 60, or if they say, "Dave Ramsey, Suzie Orman, Clark Howard, etc. said to buy term and save the rest", I ask what have they saved so far. I say, "That's great advice. Let's see how much term would be for you." I let them hear for themselves by calling the sales and marketing department of any carrier, putting them on speaker ,and letting the prospect hear how much it is for term their age. When they hear how expensive it is or they won't qualify, whole life sounds a lot better. I also explain that the scenarios these "experts" are saying are good for younger people, but the older you are, the more term is. That's if they qualify.

 

[xrac]

I did hear Dave one night tell a senior that it looked like they had no choice for a funeral except a final expense policy.

He must have washed his mouth out with soap afterwards. Was he feeling well that day?

 

[jdeasy]

Dave is, {was}, an agent. He knows the difference. he qualifies all of his advice as "entertainment".

He would lose his license if he didn't.

The person that has followed the DR system to the letter does not need an FE policy. The person that picks andc hsoes the parts they like will probably need one.

If they don't need one them they are not a prospect for me so I don't enough time with that person to get concerned about it.

Drop that lead in the trash and move on.

 

[Gooner]

If someone said this to me that is over 60, or if they say, "Dave Ramsey, Suzie Orman, Clark Howard, etc. said to buy term and save the rest", I ask what have they saved so far. I say, "That's great advice. Let's see how much term would be for you." I let them hear for themselves by calling the sales and marketing department of any carrier, putting them on speaker ,and letting the prospect hear how much it is for term their age. When they hear how expensive it is or they won't qualify, whole life sounds a lot better. I also explain that the scenarios these "experts" are saying are good for younger people, but the older you are, the more term is. That's if they qualify.

Annnnnd.... How many times has this happened to you?