Why Should I NOT Get A Whole Life Policy?

Dwayne is there. Dwayne, how can we help? Yes, sir. I have a $200,000 term for 20 years, got about 19 years left. I'm coming up off another one. That's why I got this other one, so overlap it. But because I'm just coming up off the first one, I'm wondering maybe I should get a whole life. And I'm listening to what you and I think Suze Armand, everyone's saying, hey, whole life is bad. But every time I talk to the mutual mess and these other, they're convincing me, nope, it's a solid. You won't lose money. And so I wanted to call directly and find out what am I losing when I start talking to them that it seems like I'm pretty firm on what I'm listening to, what you guys are saying. Is there something I'm missing in translation? Well, Dwayne, here's a simple way to think about it. What would they stand to gain by persuading you to get whole life versus term life from them? I'm sure it's some kind of financial gain. There we go. The commissions on whole life are astronomical. There's a good reason. Your term life policy costs about 5% of the cost of an equivalent whole life policy. And so when you're paying, you know, 15, 20, 30 bucks a month for that term policy versus 600, well, there's a lot more wiggle room for them to steal your commissions under the guise of, well, you're going to build this cash value policy and you're going to invest it over a long period of time. You're going to make so much money, Dwayne, don't invest in the market. Invest with me in this insurance policy. Do you see what they're doing there? Yeah, but it does sound like, again, this is when I'm talking to them, I get overwhelmed, the numbers and everything. And when they get done, they say, hey, look, you put this money in, which to me is a huge amount of money per month. It is. That you could be investing yourself into much more solid investments that have a much better track record. But what they do, I'm guessing here's what they did. They did some real fancy math that was real complicated to where they're like, well, Dwayne, you just got to trust me, man. This will work. Yeah. I have a little, I'm going to just throw this. Let's get out of the money. You started the call by saying that you agreed with us on a whole life. You've listened to this and you have an opinion on this yourself. True or false? Yes. When I listened, I said, hey, that sounds right because it felt crazy the money they're asking for. Right. So hold on. So stop. Who can afford that? I know. So stop. So remember why you feel that way. We've made a case and we didn't convince you. You convinced you. And so you walk away going, that's nuts. It's crazy to put all that money in there. It doesn't make any sense. You got to remember that. Do you trust yourself? Do you trust your common sense? Do you trust that opinion that you came to before you ever walked in and talked with these guys? Typically. Obviously I do. Well, I know. So no, no, no. But what happens if you sit down and somebody makes a really compelling case and they've got this thing down pat, then what they're saying makes sense too. But then you go, it doesn't make sense, but now they're making it sound like it makes sense. You just got to say, I don't think it makes sense. I know it doesn't make sense. Here's why. I think it's crazy. And then move on. Well, they're their fear factor too, that after 20 years, what's going to be the cost of another term? I'm 50. Oh no, George can't tell you that. So the idea is that you don't have insurance for your whole life. The idea is that you follow the Ramsey plan. You pay off your house in 15 years, if you do our plan with a 15 year fixed rate mortgage. And 20 years later, you've got a huge pile of money in your investment accounts. And then you become what we call self-insured, where you don't need that money anymore because you have more than that in your investment account. And you only need it if someone relies on your income like a spouse. And George, real quick, just break that down. The money that you would invest in a whole life and the return on that versus the money you would put in the 401k, the stock program, I mean, excuse me, mutual fund program based on the growth, the whole nine yards that we, you know, the return on that is big time different. Break it down quickly. So if you take the difference from that whole life premium with your term premium, take the difference that you would have paid and you pop that onto our investment calculator at ramseysolutions.com. And let's say you get an average return, even eight to 10% over 30 years. See what that would turn into by doing it on your own. You don't need them. Because all they're doing is taking most of that in commissions for the first bunch of years. And eventually maybe you'll get a crappy return. So avoid this at all costs. And why are you even talking to these people? Go talk to our friends at Zander. They're not going to sell you this whole life crap and stop even entertaining these fools. That's absolutely right. Good advice. You got me riled up. Well, boy, I love it. Boy, I love when you break down the numbers. I lead a sad life and that's what gets me riled up, Ken, but it's fine.