Announcement

Collapse
No announcement yet.

Inappropriate Whole Life Policy of the Week

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • This one is an IUL, not whole life, but looks even worse than most whole life policies as far as I can tell, and this in a bull market. That's right, 80% loss after 2.5 years.

    I made a post last Fall about an IUL policy I own. I still have it
    and am wondering what you think I should do with it. Here’s some
    background info:

    I’ve had it for 2.5 years. Monthly premium is $500. Face amount is
    $532,000 with increasing death benefit. Cash value is $18,733. Total
    surrender value is $5398. Total premiums paid $25,500



    Helping those who wear the white coat get a fair shake on Wall Street since 2011

    Comment


    • wonder why this person cant see how bad this is....

      Comment


      • Today's edition. Let's see, what is this a -92% cumulative return or so? Hey whole life advocates! What's your excuse for this one?
        My wife has a 250,000 whole life policy which I don't like. This was established by her parents before I was married and I found out about it after getting married. She signed up for this in 2015 and has made monthly payments of $215 with a total of about 7-8K put it. Her cash value balance is only 500 dollars. I discussed terminating the policy with her but she is hesitant losing the money she already put in.
        Helping those who wear the white coat get a fair shake on Wall Street since 2011

        Comment


        • if my spouse wouldnt get rid of such a terrible product, id laugh about it with spouse #2.....

          Comment


          • Send her a link explaining the sunk cost fallacy. She’ll either thank you or be pissed at you for a while.

            Comment






            • Send her a link explaining the sunk cost fallacy. She’ll either thank you or be pissed at you for a while.
              Click to expand...


              Already did.
              Helping those who wear the white coat get a fair shake on Wall Street since 2011

              Comment


              • This week's addition. 6 years into a policy and still with a cumulative -67% return on it.
                Hey, WCI, I’m sure you get questions about this ad nauseum, but
                I’m wondering if you could help me out. I’m a 32 year old doctor
                married to a 34 year old doctor. I was sold on a Whole Life insurance
                policy when I was 26. I have been reading a lot of articles here about
                Whole Life policies and its downfalls. I was wondering who I could
                talk to about having someone looking over my policy to see whether its
                worth me bailing on the policy now, 6 years into $12,000/year of
                premium payments with only $4000 Cash Value to show for it so far.
                Helping those who wear the white coat get a fair shake on Wall Street since 2011

                Comment


                • Today's edition. I sometimes wonder if there are any doctors who haven't been sold a policy.

                  I think what we're looking at here (although it's hard to tell) is $72K per year for 13 years is now $430K. That's -14.59% per year. That seems terrible, so my assumptions are probably wrong. Maybe they didn't start paying $72K a year until partway through the policy. Either way, it's impressive how much of their income whole life insurance was eating up. They're going to feel positively rich after eliminating that monthly expense.
                  Both of us me and my husband have whole life insurance paying 2k/ month for 2M coverage and in our 13th year.. Rethinking best way to cancel ? Have at least $430 k in cash value. I’m shock my FA is still trying to convince us to stay !!! He said he also own it for 5M coverage. We even added 2k per month to add more on our cash value hu hu hu, sad I didn’t learn early enough

                   
                  Helping those who wear the white coat get a fair shake on Wall Street since 2011

                  Comment


                  • I realize these insurance salesmen are quite skilled.  But how do people not research this stuff?  Where else would you sign up for $4K per month purchase without exhaustive googling?  I mean I spend way too much time researching which $50 toaster to buy on amazon..

                    Comment






                    • I realize these insurance salesmen are quite skilled.  But how do people not research this stuff?  Where else would you sign up for $4K per month purchase without exhaustive googling?  I mean I spend way too much time researching which $50 toaster to buy on amazon..
                      Click to expand...


                      Fantastic question. Part of the issue is the top three pages on the search engines when you Google whole life insurance pops up sites where people are selling it. It's harder than it looks to really get any sort of unbiased or even negative opinion about it. Even a simple explanation of how it really works is hard to find.
                      Helping those who wear the white coat get a fair shake on Wall Street since 2011

                      Comment


                      • Agree. I think another issue is timing. Some groups target students or residents nearing the end of training, which is a hectic time where people are wrapping up projects, selling/buying homes, preparing to move, having kids, etc. Someone slick can come in and say "oh you absolutely need this more than any other retirement account; the sky is falling and you have to protect everything blah blah".  As the target, it's convenient to accept some of these falsehoods by someone who appears knowledgeable when your mind is really on how to pack up that Uhaul truck.

                        Comment


                        • another summary after 15 pages of this: some of y'all have way too much money....

                          Comment






                          • I realize these insurance salesmen are quite skilled.  But how do people not research this stuff?  Where else would you sign up for $4K per month purchase without exhaustive googling?  I mean I spend way too much time researching which $50 toaster to buy on amazon..
                            Click to expand...


                            I think another issue is when these people are given names of other physicians who did not know enough to avoid these.  They figure that it must be a good product if these other people are buying it.  After many years of never even listening to the pitch, I finally decided I needed to review my strong objections to them because of all the people I knew that had them.  It did not take long to reconfirm my long held beliefs.

                            Comment









                            • I realize these insurance salesmen are quite skilled.  But how do people not research this stuff?  Where else would you sign up for $4K per month purchase without exhaustive googling?  I mean I spend way too much time researching which $50 toaster to buy on amazon..
                              Click to expand…


                              I think another issue is when these people are given names of other physicians who did not know enough to avoid these.  They figure that it must be a good product if these other people are buying it.  After many years of never even listening to the pitch, I finally decided I needed to review my strong objections to them because of all the people I knew that had them.  It did not take long to reconfirm my long held beliefs.
                              Click to expand...


                              Honestly, what I've always wanted to know is how physicians can do this to each other. Since the system feeds off physicians sending other physicians and their residents/fellows to these agents, what are they thinking? I don't refer anyone I wouldn't send a family member to. Don't you guys have the same attitude?
                              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                              Comment












                              • I realize these insurance salesmen are quite skilled.  But how do people not research this stuff?  Where else would you sign up for $4K per month purchase without exhaustive googling?  I mean I spend way too much time researching which $50 toaster to buy on amazon..
                                Click to expand…


                                I think another issue is when these people are given names of other physicians who did not know enough to avoid these.  They figure that it must be a good product if these other people are buying it.  After many years of never even listening to the pitch, I finally decided I needed to review my strong objections to them because of all the people I knew that had them.  It did not take long to reconfirm my long held beliefs.
                                Click to expand…


                                Honestly, what I’ve always wanted to know is how physicians can do this to each other. Since the system feeds off physicians sending other physicians and their residents/fellows to these agents, what are they thinking? I don’t refer anyone I wouldn’t send a family member to. Don’t you guys have the same attitude?
                                Click to expand...


                                The "advisors" think they're doing a service and the clients think they're getting good service, so why wouldn't the clients refer more clients to the "advisors"? It's the blind leading the blind. Maybe that's why the best person to ask for a referral to an advisor is someone that doesn't need one.
                                Helping those who wear the white coat get a fair shake on Wall Street since 2011

                                Comment

                                Working...
                                X