Dave Argues With a Whole Life Insurance Salesman
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This is at least the second time I’ve seen a whole life agent call in to defend their product
Its not the second. Its the same call. They recycle them.
@@tduck828 I can't say whether this one was posted previously, but there was one several years ago, before George joined them. So that's at least one other unique call from a whole life agent
@@tduck828 the first guy had a northern accent, maybe like Boston or New York.
@@tduck828there's been others
This is the third they literally don’t take no for an answer lol
When I see Dave and whole life, I click on the video immediately.
Always interesting!
Same.
He has a beef with leasing too. I bought mine and it is worth 6k more than what I paid. Plus he lies or "omits" about the end of term process.
SAME! (Klaxons blaring- PA speaker)- "TAKE SHELTER! INCOMING RANT!"
I knoooow 😂😂
This one's a good one. Dave explained it really well and the caller still tried to make some sense of it 😭😅
Yeah, with its better than nothing, oh gosh do they realize what are they saying...instead of educating them , you are telling poor folks to buy your product because it is better than nothing..
he has to since he sells it and try to get a plug in for people...
The argument went from "Most people only retire with $5000" to "these people I'm helping aren't struggling" in a single sentence.
Middle-class a the ones buying whole life
A lot of people has a lot of disposable income but don't save so both can be true
@@Iamyourboo2 it's called coping
to "Michael Saylor is the biggest ignoramus" 10:00
They will be struggling if they keep paying those premiums.
Dave broke it down and the caller is so mind blown that he has to cope. Just sad
Caller may switch to being a term agent
@@quintinnunn1392 doubt it
Dave handled this very well. He treated the caller with respect and just laid out the case.
I've seen a couple of other whole life calls where people tried to fight Dave and say his assumptions were wrong. I'm glad Elliot was so honest about how they keep the savings and light the first 3 years on fire.
Dave was kind to not even bring up the agents % of commission on the front end.
Commission is paid by the insurance company for selling their policy to a customer.
@@JM-xp8te Commission is paid by the client that buys the policy through his "trusted agent" that puts the electronic exchange through the ivory tower that gives a huge % back to the agent. The agent is "working" on 100% commission.
@@JM-xp8te And, the client is paying that commission. The company doesn't pay a dime because they make the split off of the sale.
@@JustinCase780 same as a car salesmen.
@@JM-xp8te Yes, that's why people hate both! Go sell to some other muppets, not here!
Dave vs Whole Life Agents are always a good one 🍿
*Same calls being recycled*
Yeah because he been around the block and this guy is new to the scene he gonna learn
I've been paying term life insurance for 30 years, never made a claim and I'm happy about that.
Insurance should not be seen as an investment vehicle. It should only be about mitigating risk for you and your loved ones. For life insurance, it's about your loved ones.
If you are single and no one relies on a portion or all of your income then you do not need life insurance.
But if you have loved ones who rely on a portion or all of your income AND you consider yourself a good, loving person, you will have life insurance.
Decreasing your tax burden for your beneficiaries is mitigating risk of being overtaxed
Woooooow he’s been working for THREE WHOLE YEARS. He’s an expert on business and investing 🤣🤣
I guess you missed he also graduated from a top 20 business school. He knows everything.
The guy starts the call by giving Dave his resume, then he makes an appeal to emotion ("why am I such a horrible person?"). Sleazebag tactics all around.
@@Sizukun1we definitely know it wasn’t top 10, otherwise he would have specified that 😂
This guy became success after 3 years most adults don’t
He’s been in the business just long enough for his first customers to finally see cash value 😂😂
Caller was honest.. credit to his humility
So his reason for selling and defending whole life is that he sees people retiring with close to nothing in savings so he's trying to help/force people to save. But when then having to defend the crappy product, he states that he is under the impression that the people he is selling the policies to also have extra funds to invest for their retirement.....
Anytime I consider purchasing a new product or service that I don't immediately understand the first thing I do is figure, how is the seller / provider making their money. When I have a good idea of that, then I have a better understanding if the product or service is good for me. Because I will not be someone's cash cow.
If you buy whole-life insurance you're not a cash cow, ..... you're the herd.
Let’s stop at “average Americans retire with $5k in their bank account” you can’t just make up stats to support your point.
NOT retirement savings>> Passbook savings at the bank associated with checking.
maybe a checking account lol
I just looked it up and the median retiree has $87,000 in their retirement fund. Which isn’t a whole lot, but it’s a whole lot more than $5000. And the average will be even higher than the median.
@@TonyCox1351the average/mean seems to be about 4 times higher
@@mrgaudy1954 I’m not surprised. This caller sounds like he’s just parroting something he was told by another sales guy, not “learned in a top 20 school” (lol)
It really is a scam. I was paying over $100 for about 2 years and due to an emergency I called to see how much I had in my account. I was shocked when the rep told me less about $300 due to fees and whatever else. I’d never see that money again. I decided to cut my losses and seek other legitimate saving options. What really irked me was that a family friend sold us this scam which only added to my trust issues.
Everyone here is being so mislead it’s painful to watch Ramseys advice is so terrible here. A good life insurance agent will explain to you this ain’t something you hold for 2-3 years out this is a appreciating asset than in 20-30 years you could have millions in cash value. People don’t understand this isn’t a short term asset plus it also covers the what if in case you unfortunately die to cover your family if the main bread winner is no longer here. I can do a way better job of explaining why this is useful.
If you are a man with family please go get term even just $25-30/month for several hundred thousand coverage
@@Carlos-gm8rq you should call in and argue that with Dave. I'm sure you'll change his mind.
lol millions also who gets that when you die?
@@Carlos-gm8rq I dare you to call in, you'd get put in your place just like the rest of them. You absolutely won't though, you'll just stick to hiding anonymously online and trying to defend this and conning gullible idiots. Why the hell would you pay for the kind of life insurance that doesn't "work" for the first few years lmao, the whole point is to have insurance against unexpected catastrophe - but the scammy way whole life insurance is set up is it doesn't even work if you get unlucky (and that's the whole reason why you're getting insurance in the first place, if you get unlucky).
The caller is what I call a scammer. Same old scripted speech without telling the pitfalls of it.
Where in the world did he get this "retiring with only $5,000" stat? A quick Google search confirms that is far from reality haha
@@MichaelAnderson-wk1no Haven't you been listening to Ramsey long enough to know there are tons of people in their 50s/60s that are SWIMMING in debt, and somehow think they're "close to retirement"?
@Thurgor_Supreme Yes, there are plenty of people with little. But that doesn't make this imaginary $5,000 statistic true.
He said 5k in their bank account. I don’t think he understands the stat he is slinging. It just means people keep enough liquid to get through for a bit and keep the rest invested.
Sounds like a d-bag. Doing any sort of business with a insurance company is a conflict of interest. Unfortunately some insurance is needed.
I literally had this discussion with an insurance salesman 3 days ago. The concept of choosing Term and investing the rest in something else that is more substantial was an alien concept to him. It was a bizarre cult-like perspective that he had on it, regardless of the numerous counterpoints I provided to the contrary. Exhausting. I guess people have always been this way, but perhaps I'm getting too old and have started running out of crpas to give to bother anymore.
BELIEF is or can be one of the most dangerous things out there.
He had the biggest YES to incriminating the product
I have never been happier and wealthier than when I cashed out my Whole Life, bought term life and began investing the difference!
How about investing and having whole life?? Term is a bad product the older you get and burning money
@@kirkroyse4705 term is a fraction of the cost as whole life. What's the purpose of your insurance policy? To leave your family rich when you die at whatever age, or to provide a safety net in the event you die unexpectedly early?
@@godfathaofyo whole life covers both and term you don’t ever get the money back, I use my whole life as a hedge and tax free while investing
@@godfathaofyo both term is flushing money down the toilet
@@kirkroyse4705 If you want to leave your family rich when you die at old age, invest in an S&P indexed ETF. if you think term is flushing money down the toilet, than you aren't in the market for life insurance.
I took a job w a life insurance agency after getting licensed in banking bc I couldn't get hired after graduating.... I left work truly disgusted by the people around me everyday. I couldn't tell if they didn't know the harm they were doing or if they knew and just didn't gaf. The way they would take peoples life savings and put it in bullshit pissed me off. Finally one day I just walked out
Anything people try to sell you that hard should be immediately suspect.
I’ve sold life insurance my entire career and I agree 100% with Dave.
How much do you make selling life insurance
@@Madn3ssMan a good income.
What Dave fails to mention is that once a term life insurance policy, expires, be it at 10, 20 or whatever years, you are now that much older, the premium on another term policy is significantly higher, and continually increases, and there is no cash value. With whole life, you get a fixed rate for your entire lifetime, which can be relatively low if you start young, and there is a cash value if you terminate the policy earlier.
Normal people should never ever get whole life. I have an insurance license and it's not a product meant for the average Joe. It's meant for when people that are incorporated need a way to lower the tax burden for when they die. They can invest the money and get taxed, in my country, up to 83% upon death. Use whole life instead of investing in mutual funds and you get a better return and get taxed around 34%. Why should the estate pay over twice the tax if you can do something to avoid it? The person who is wealthy, incorporated and very well established are the clients. Not the vast majority of people
Excellent video as always but here is my problem I have been making losses trying to make profit trading. I thought trading demo account is just like trading the real market... can anyone help me out or at least advise me on what to do
Thank you so much... I appreciate all the time it took to put this together
l urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted
thanks man, you always give superb advice and ideas for making money. This video was very inspiring today. Thank you!
Everything said here is all so easily said that done, you would need help from a pro who knows the in and out of how the market works before you get ahead
I have always had a deep interest in this and would really love to start from somewhere anywhere actually, I believe this is what our future is all about
Is this guy Matt Taibbi? Vocal fry
Whole life is a rip off. The only good part is the agent gets a high commission
So, what happens when that term expires? What, then? No insurance?
It really depends on the person’s comfort level and risk tolerance. Most term life policies expire after 55; after that, you’re SOL and stuck with outrageous premiums, or you're uninsurable and can't afford it.
Not accurate
@@lukerider479 Why? Because your daddy Dave said so? You do know he gets kick backs from his smart investor pro advisors aka term life insurance salesmen companies.
"You know, you know, you know...umh.... You know .... Umh."
I do follow some of Dave's advice and have followed his 7 steps. But we differ on this one. 🤗
I remember someone telling me he sold a computer mouse for $5 and sold a 3yr warranty for $5. This sounds similar
Yes, and when your mouse runs away, try collecting the portion of the $5 after depreciation, wear and tear, fee, etc
I don’t understand “whole life.” I’ve tried to look it up, & I can’t grasp the concept bc I’m dumb 😂
That's your first clue that it's a nonsense product. If you can't understand it, part of that reason is they are purposefully trying to obfuscate it so you just think "well they're smarter than me so I'll do what they say". If you don't understand it, don't buy it.
George needs to be quiet while the adults are talking. He is just parroting Dave by rephrasing
Didnt he say he told his family not to use whole life but yet he sells it to his customers. That tells me he doesn't believe it's good. If he thought it was good, he'd have his family using whole life too.
This is laughable. I had a term policy and when I fell on hard times and couldnt afford the monthly premium, it went away right along with everything that I had paid. ALL of the years that I paid. However, I also had a whole life policy at that same time and I was able to use the cash value to help my family and I sustain until I secured a better paying job to meet our needs. Whole life is not the devil. From my experience, it has been a policy that I have been able to use when needed and my family will also have when Im gone. I was not able to do that with my term policy. IUL and term policies is where people get ripped off. But to each their own
I've found that people who sell whole life generally have their hears in the right place, and have memorized the sales pitch and talking points like the back of their hands, but they don't ACTUALLY understand how investments/finance/the market work over time. And the whole life sales pitches are obfuscating enough that they don't leave any room for anything else to be understood.
Bull, they have convinced themselves it's OK to make a buck.
Term is the way to GO! 🥳
No matter the product ALWAYS check for EXCLUSIONS!
Most products won’t pay claims ! If you die from those exclusions!!!
Please 🙏🏼
check those exclusions!
Let’s do the math on just the first 3 “lost” years. $190/mo x 36 months = $6,840. Using Ramsey’s investment calculator: $6,840 invested at 8% for 30 years becomes $74,800.00.
I just put my whole life policy on a credit card.
End of the day, shop around and find a good policy that fits your needs. If whole life makes sense then buy it. If term makes sense to you then buy it. Know the pros and cons for each. Shop around.
This is why a successful man like Dave Ramsey prefers single premium whole life for him and family members. Thank you so much, Dave. You are a winner ! ❤
Ramsey’s assuming that the individuals actually invest their money… which… we all know the avg person doesn’t.
Why is math important when considering an insurance product, but dumb when considering safe withdrawal rate?
Why is math important when considering an insurance product, but dumb when comparing average mutual fund returns and expense ratios?
I think Elliot will walk away from this scam after Dave so eloquently broke it down to him. Elliot seems like a good dude just confused and bought into what his bosses sold him in the job interview.
That’s why there’s new term policies called ROP. Which operates like a cash value if you outlive it.
I can see whole life working out in one scenario. It provides money to clean up the mess left behind for the family. Term has more often than not expired well before ones demise.
This guy just justifying his existence. It’s sad he really wants to feel like he’s doing a good thing.
It’s a scam!
Lets talk about the COMMISSION that is made off of the whole life policy! Its nuts!
I’m so happy you made this video so I can go back and share it with anymore who tells me they are happy they got whole life insurance
Some people can’t see the forest for the trees.
Imagine getting a whole life policy at age 25, for 100k
You pay, let’s say $100 a month for it
Retire at 65, with this $5k In retirement the agent mentioned.
The amount of money you’d have, compared to someone who put it into a roth; is sooooooo much less.
20 Pay Life - Yowza !
Actually, using Dave’s investment calculator, $100/month from 25 to 65 at just 8%, you would have $349,100.00, at 10% it would be $632,405.00 and at 12% it would be $1,176,476.00!!!
@@dannyh9010 💯
That’s what I’m trying to say
The money you put into that stupid whole life policy, pales in comparison to an actual, real investment
I have never heard a logical explanation for why it makes sense to combine a life insurance policy with an investment vehicle.
There are a few, but you're right in that it is a small minority. Wealthy people who have estate taxes that need to be managed and families with disabled children are the most common people for which whole life insurance can actually make sense.
@@JaredHoutsma Can you point me to a reference that I could read?
A whole life product and a universal life policy is the worst type of policies out there,I sold those type of policies to Farmers trying to pass on the farm to pay the estate taxes to keep the farm in the family,that was the only type I would go to sleep at nighttime and feel good,and I always owned term insurance to protect my family,when I turned 60,I quit buying life insurance,no need for it anymore,the insurance salesman sells what the insurance company wants it to sell,buy term and invest in index funds that outperform the s&p, NASDAQ,.period.
This one feels scripted, the caller wasn't nearly deluded enough or defensive enough to actually be an insurance salesman
Does he say at the 6 minute mark that they would send the $60k check to the customer? Seems that what he says. Unclear his point.
It all started good and even gave a like but then you talk about bitcoin being bad…. Smh
Whoever his boss, they really brainwashed him.
There are many better alternatives than whole life. Period!
Wealthy people only invest in term life for good reasons.
This is the 2nd whole life clown to call in to try and make their case.
"Better than nothing"... Who could say no to that?
*Patrick bet david has entered the chat*
I’m confused… People are upset that they paid for term life insurance but didn’t need to file a claim? They’re upset they’re not dead??
That's right! Most people are upset that they wasted all that money on term insurance which almost never pays out a death benefit. That's why they should pay 15 to 20X more in premiums for whole life that pays out even if you die at 90 so you can continue to support that 60-year-old son that still lives in your basement playing video games.
It's better to argue with a whole salesman than two halves of a salesman. 😂
And it’s better to be a whole ass than an ass… whole! 😂
Dave is right for the most part on things but I have worked my job for 24 years and have seen guys I work with retire with under 10 years because of bitcoin investments. Please explain that to me.
The Fried Kid 😂😂😂
Oh Dave. Just couldn't resist taking a jab at Bitcoin haha.
If I was more selfish, I'd say fine - please keep discouraging people as it helps suppress the USD price and gives the rest of us have more time to learn and invest.
Really though there is enough BTC to go around, for anyone who is happy with just 1/10th of a coin. And it's the common everyday people that stand to gain the most by opting out of fiat.
One day we'll know for sure Dave is right or wrong, but wouldn't it be good to "get off zero" and save up at least 0.01 BTC just in case Dave is missing something?
I bought a whole life on my daughter when she was 16. It's 100% paid up at 37, which is in 3 years. I withdraw all cash value on that policy every so many years for myself!
Why, because she's now married and they're very successful and covered many ways. It would be senseless to close that policy with only 3 years left to be paid in full. At that point, I can't pull any cash value from it. I'll then make my grandkids the contingency beneficiary. Am I wrong for this??
I couldn't agree with Dave more on this issue! I saw my husband's (Boyfriend at the time) retirement savings disappear into life insurance premiums. (and at the time he had no dependents). $25,000 over 5 years just gone.
Any form of life insurance is a scam. So is most insurance. If they're being genuine with it they wouldn't be making money because they'd be paying out 100%. The sketchy rules and clauses are where they screw people over.
My aunt sold us this policy when i was young and i could never understand the cash value number vs what i calculated if i invest the money myself like Dave said. After a few years of ignoring it and came across Dave Ramsey, I got rid of our whole life insurance, took the loss and got Term policy. We were young in the mid 20s when we got it. We don't talk to my aunt anymore.
I've had a Whole Life policy for several years for only $27.75 a month. It's an extra perk for my children when it's my time to go. I have my financial ducks in a row, am retired, and can afford this extra for them.
Back in 1980 after I graduated college I was contacted by a high school classmate, seeking to sell me a Whole Life policy. Even then, I knew it was really DUMB. I listened to his pitch as a courtesy, wished him well, sent him on his way.
I loved this to the very end where he YET AGAIN talks crap about BTC. The hardest asset the world has ever seen and he compares it to whole life insureance....LMAO
No matter which opinion you have about insurance, families need to have regular discussions about final wishes. People need to have a fireproof box with all the important papers, ie; wills, deeds, birth certificate, marriage license, insurance policies, etc. DONT put these papers in a box at the bank. They must be easily accessible. Both my parents had there stuff in order and we knew where everything was located. It made handling their final affairs a smooth process. It’s okay to talk about death with your family.
Oh sunshine....I've been paying for 42yrs now may children are long gone and guess what? Premiums are still not being paid by that supposed investment. At my age I could well be using that policy monies to take care of living costs. Big mistake I made.
Bro nobody is retiring with only $5000 in their savings account thats beyond stupid... i'm 21 and I already got 19k in savings I better have way more when I die
Let me tell you this. My step mother, who sold whole life in her 40s and 50s, was still receiving commissions from those sales up until her death at age 85. So who is paying her commissions? You! If you bought whole life and paid the front loaded commissions.
We should play "Find the Enthusiastic Ignoramus (E.I.)" game in the comments of Ramsey videos! 😂
Whole life insurance profit margins are around 10% after they pay commissions. The biggest profit maker for whole life is when people cancel their policies after they have been in force for about five years. They took all you money and they have 0 risk. Everyone is going to die, and there is a massive amount of data on it. The Life Insurance company can accurately price life insurance and that is why it's profitable, it's not malicious nor is it a scam.
Awesome!!! Go and get you some TERM LIFE and invest the difference.
This guy says he went to a top 20 business school and he fails to understand a simple concept. It's a bad use of money.. It's pretty unbelievable..
And what happens when you abandon the policy and stop paying? Will you get your money back?
He’s taking about regular whole life policies which I agree would not be a good place for my money. There are whole life policies designed a specific way that puts money into your account from the beginning.
I worked in a broker (business ops ) and was shocked that year 1-2 of a policy payments were about equal to commission/kickbacks.
0:32 "personally I tell my friends and family to cash out their whole life policy..."
End of call right there. If you've got a product that you wouldnt put someone you care about in, dont sell it to a stranger.
It is tricky because I think many of these people honestly think it is a good thing. And it is so hard to get someone to look at the math when they honestly feel it is good; that they are helping.
They can come up with those one or two scenarios where it might work out OK and just ignore the fact that for almost every other situation, it's not a good idea...
I think some sellers know it's a scam, but others have convinced themselves that it is "the way" to succeed.
It's an interesting look at human nature...
I'd rather invest my way to whatever the policy offers than be scammed throughout my "whole life"
My parents bought whole life in the early ‘70s. When my 24 yr old brother died I made a point in front of my mother to ask the agent what the total payout would be with a current schedule showing the face amount and accumulated cash value in front of us. Of course it was only the face amount. Due to her age at that time we got her to take all the cash value in her multiple policies and get paid up term additions. 3 years later when she died there was a lot more face amount paid to our family.
Knew a guy who got into this. Their math showed good return and he was all about the tax advantages, but it seemed way too inflexible to me your money is stuck in there. It's a great point that if you die early it's worth nothing more than a much cheaper term policy, best to keep actual and insurance and savings separate.
Caller should switch to selling term life insurance 😂 but ALL insurance companies are scams and crooks but most of us need it so damned if you do, damned if you don’t
What a good way to argue with someone - "... I appreciate your heart". Not attacking him, just laying out why you think the strategy he is selling is bad.
Term is supposed to give you coverage in case anything happens before you’re able to grow your nest egg big enough to take care of your family. You still have to invest wisely in the mean time.
I read the thumbnail and thought someone was bluntly asking why everything in their life was going wrong, before I realized this is about insurance.
Permanent/Whole life Insurance can be a great product for tax free income in retirement, if you can fund it to grow to a couple million by retirement and your retirement needs are going to be in the higher tax brackets. Not everyone can do that. Too many early career insurance guys are trying to sell permanet insurance to everyone under the sun because that is who they get paid and it is a screw job.
10:00 You guys heard it here first, Michael Saylor is the biggest ignoramus according to Dave Ramsey