SECOND THOUGHTS on Whole Life Insurance 1 Year in - ADVICE???

[DHK]

In post 22 of this thread, it's right there in my illustration software screen print, right above the area I circled.

 

[scagnt83]

You are right about the withdrawal to basis!! I just called Ohio National and they said it can be done. I never use insurance as a savings tool and I was unaware that you can do that. That being said I'm sure I still won't use it as a primary bank on yourself kind of thing but it's good to know if any of my clients or myself needs money out of a WL it can be doing without incurring interest charges.

Glad you could verify, it's a common misconception. In sales school, the big mutuals drill in that the "right" way to take money out of a WL is "Withdraw to Basis and Loan out the Rest". Thats what NYL taught and I know NWM, MM and others did too.

The reason is to keep things tax-free, since thats a main aspect of the sales pitch. Also to keep things simple for new agents. But that doesnt mean you are forced to do it that way.

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Im not a big fan of "Be Your Own Banker" or other systems like that. It complicates things beyond what most normal people need or want.

In my experience, the guys who market BYOB, Bank on Yourself, etc. often have terrible persistency rates. Especially the true BYOB Nelson Nash system where you are paying yourself back interest like you would on a loan from a bank.

I own and sell WL because its a safe and secure financial tool that serves more than 1 purpose.

From a pure investment standpoint:
Risk level is less than an AAA Bond but with a comparable Return. That speaks for itself. But in technical terms, it has a higher Sharpe Ratio.

That combined with the Estate Planning benefits, make it a very logical choice to utilize within an overall financial plan.

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Imo, the biggest issue WL and IUL have, are the agents and IMOs that pitch it as the only "investment" a person needs to own.

Also, the ones who pitch complicated systems, but never educate the client on the core benefits and features of the product. The product can stand on its own, it does not need a complicated unnecessary system for clients to want it.

 

[LostDollar]

For op:

http://www.insurance-forums.net/for...um/sigh-i-hate-running-into-these-t88760.html

Some examples of problems that some folks find with term.

 

[Golfnut2112]

Had a friend explain to me why whole life is a scam as she hears from Dave Ramsey...mind you she owns two whole life policies.

I, like you Golf, hate when people oversell whole life like its an investment but you not knowing you can surrender to basis a whole life policy should have ended your side of the debate back on page 2 maybe even page 1...no offense

None taken, I have never heard of that before and I have doing this 30 years. Like I said I don't sell life insurance as a savings tool or investment. Also that was memorial day and I was at a cigar bar bored and got caught up in the moment.

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Glad you could verify, it's a common misconception. In sales school, the big mutuals drill in that the "right" way to take money out of a WL is "Withdraw to Basis and Loan out the Rest". Thats what NYL taught and I know NWM, MM and others did too.

The reason is to keep things tax-free, since thats a main aspect of the sales pitch. Also to keep things simple for new agents. But that doesnt mean you are forced to do it that way.

----------------------

Im not a big fan of "Be Your Own Banker" or other systems like that. It complicates things beyond what most normal people need or want.

In my experience, the guys who market BYOB, Bank on Yourself, etc. often have terrible persistency rates. Especially the true BYOB Nelson Nash system where you are paying yourself back interest like you would on a loan from a bank.

I own and sell WL because its a safe and secure financial tool that serves more than 1 purpose.

From a pure investment standpoint:
Risk level is less than an AAA Bond but with a comparable Return. That speaks for itself. But in technical terms, it has a higher Sharpe Ratio.

That combined with the Estate Planning benefits, make it a very logical choice to utilize within an overall financial plan.

-----------------

Imo, the biggest issue WL and IUL have, are the agents and IMOs that pitch it as the only "investment" a person needs to own.

Also, the ones who pitch complicated systems, but never educate the client on the core benefits and features of the product. The product can stand on its own, it does not need a complicated unnecessary system for clients to want it.

I was at NYL when I bought my policy, I must have missed that training session!! Lol