In this final episode debunking life insurance misconceptions, Kyle and Todd discuss the rumors that whole life insurance is expensive with a low rate of return. Most of this information comes from unequal comparisons, but the reality is that life insurance can provide one of the highest rates of return over the course of its life. Tune in to hear more about how to maximize your dollars through whole life insurance.
Highlights
00:55 Misconceptions about whole life insurance being expensive and having a low rate of return
02:26 How unequal comparisons play a significant role in misconceptions
04:56 Case of misinformation such as getting only the death benefit and no cash in life insurance
07:04 The concept of rate of return in a life insurance policy explained through a comparison with an alternate investment scenario
11:04 Importance of having term insurance during working years and the higher likelihood of death post-retirement
13:40 How having a mix of equities and bonds in one's portfolio can yield better returns than a life insurance
16:50 The concept of self-insurance and the advantages of using an insurance company's pool
17:59 Comparing the certainty and protection of a whole life insurance policy to wealth accumulation
19:02 Benefits of partnering with a strong mutual insurance company
20:20 Debunking the common misconceptions about whole life insurance policies
22:00 There are no "deals" in the insurance industry, everything is built based on balance between risk and cost
23:24 The difference in risk and cost between term and whole life insurance
25:46 Assertion made that it's incorrect to label whole life insurance as "expensive" and term insurance as "cheap"
28:52 Observation that comparing the rate of return from a whole life insurance policy to an investment vehicle is usually taken out of context
30:02 How partnering with life insurance companies can be valuable to the equities market as life insurance can provide a certain asset to counter market fluctuations
32:34 Conclusion that term insurance is not cheap and whole life insurance is not expensive, both are priced perfectly for what they do
Episode Resources
