term life insurance batter then whole life?

Deference term life insurance is just insurance so it is it's like your car insurance call you get you don't get any money unless you die and so you don't have any money because you're very right the only way his office when you got your car insurance paid off you don't make money on your car insurance your homeowners insurance that's your insurance that's all it does it doesn't have any gimmicks for bells or whistles that has an investment built into it or you can buy cash value life insurance which includes whole life or universal life or variable life now here's the typical numbers the typical numbers are for $5 you can buy as much term life insurance on a 20 year level term as you can for $100 x in cash value life insurance per month so why would you pay $95 more per month because it builds up inside of it a savings account called cash value that build up a savings plan so that then later on if you close the policy they will write you a check and give you your savings back so you have you buy insurance and $0.02 for $5 and you invest $95 out of every $100 per month so why is that bad was bad for a multitude of reasons number one the rate of return on the typical whole life policy is around 1% about like you're stupid savings account at the bank and no one builds well that 1% phone a universal life after all the fees and they quote you a higher rate but after all the fees your net is around 4.7% these are all documented numbers another variable which has mutual friends and it by the time the mutual funds get through the all the ways of the insurance company what should have been a 10 or 12% rate of return the end up looking like about a 6% rate of return so that you're happy with the fees if you want your money and I love your quote savings account out of your quote investment not there's only two ways to get it 1 is cancel your policy and lose your insurance or to his borrow it no I meant you're going to borrow your own money and pay them interest to borrow money you put into an investment that stupid but people do it all the time and people who sell this crap act like that's tax-free return it's not tax for his borrowed money and you're paying in interest to him or to an insurance company will get your own stinking money but there's a worse thing what say you by like a couple of her $1,000 policy and you pay into and you pay into it you pay into and you pay into it finally gets past all these fees and there's $100,000 in there and you die U cash values 100000 your face values 200000 here. You know what they paid you are down but they the face amount what happened to your hundred dollars that you pay $95 per $100 a month extra to build up when we don't know apparently they keep it up a savings account with a lousy way to return it when you're done and keep your savings that's why life insurance it is one of the worst Financial product in the world it is the payday lender of the middle class without about and the people that sell this stuff should be ashamed of themselves it's absolutely horrendous it's just it sad and enter here's what's really sad they are really good at selling it so I'll turn in your Journal you heard you're going to run out of time you're going to be with me your house or do you by your house build up a picture of it 20 times more expensive life insurance agent gets paid pay the premium Paramount life insurance and so what end up happening is people buy this crap and I don't buy enough life insurance take care of the family and then they die for these stupid but tiny little whole life policy is there a tenth of what they are today so you and I have about 10 to 12 times your income on you meaning if you make $50,000 a year you have $560,000 in life insurance on you you die your spouse takes that invested if I make 8 or 10% and they're creating 50000 hour here and you've been replaced that that lump sum investment will pay your family what you used to own before you died and it's not simple it and you know it just doesn't cost anything term life insurance is very very inexpensive to get the proper amount and this is why I have endorsed for an indoor endorsed term life insurance from the very first day I turned on this microphone 25 years ago and why I've endorsed and her insurance to get your term life insurance has a shop and get you the best possible price they're great folks they do a great job of taking care of the customers I personally by my insurance it was in there but we did by there not never by cash value insurance it's absolutely an Antiquated crappy product and it's all about them making money to nothing about you making money that's what I mean by it being the payday lender of the middle class it's just her Windows cut that helps you write another vendor insurance.com get you a quick easy quote on that time and that what you wanna do it's what I do it's what I've done I'm actually my whole life then there was never any doubt hey guys thanks for watching if you enjoyed this video click the Subscribe button to get the latest contents and check out these other great clips from the show so you have to break the cycle with this thing on its head and make it behave you got to get so fired up and wired up but your broke friends think you've lost your mind Credit card debt see what you're doing David you're on the Suze Orman show 3 years ago and I'm wondering how long have you been paying for this insurance 12 years and have been paying for this insurance for both policies about $270 every quarter right now what would you say is the cash value of the policy that you can use it for 12 years correct amount of money that if you went and looked at your actual statement your statement that told you the actual cash value after 12 years of putting in $240 every quarter I would bet you any amount of money it's only about maybe 9 $10,000 at most do you have any idea if that's true or not 12 year simply put the $270 that you're putting in every quarter if you have done nothing more then put it in an account making approximately 8% annual average rate of return that's not that much over 12 years that today you would have $21,000 do you know that number one number two here you are 36 years of age you have another 50 years until you are going to end I actually speaking to you know that if you continue to do $270 a quarter over the next 50 years you would have six hundred and $38,000 in cash value when you look at your policy and they tell you that you're going to have a million dollars is that projected or is that guaranteed rejected did you look at the guaranteed side of this equation 2 year old kids insurance for them 20 year level Term Policy it would cost you approximately $30 a month or $90 a quarter of what you're paying now and this would be for a half a billion dollars of insurance on just you and it would cost even less for your wife this is what I want you to have a financial advisor there I think you have an idiot who happens to be advising you on what to do with your money somebody who cares more about themselves go and get a life insurance policy on you to make sure that Farm Insurance in place that if God forbid anything happen to you and your wife are together both of you your children would be okay forever I want you to have enough term insurance so that it would last long enough so the. That I want you to have it at least until your children are 24 years of age in this case you could have anywhere from a 15 to a 20 year level Term Policy once you have that insurance in place because you have to be happy let's get some more Insurance here then I want you to cancel the whole life insurance policy that you have in yourself I want you to cancel the whole life insurance policy that you have on your wife I want you to cancel the whole life insurance policy that you have on your children take that money invested in a good 529 College savings plan to fund your child's education maybe even in retirement account for yourself and then do me a favor get yourself a new financial advisor somebody who really cares about you rather than simply say buddy who is taking you to the cleaners under the guise of financial advice however give it to me I want to tell you