“Is Whole Life Insurance a Good Investment?”
Perhaps no question has generated as much controversy on financial blogs and forums as this one.
“Typical” advisors and the media-hyped financial gurus say, “Stay away from whole life insurance!”
Meanwhile, many passionate agents and advisors try in vain to correct the misconceptions, sometimes stating their own misconceptions, or irritating others who believe their unbridled enthusiasm is motivated only by commissions.
Indeed, The White Coat Investor website’s most popular post on whole life insurance (written by a self-appointed, unlicensed financial “expert” who is actually a full-time physician) has generated over 800 comments from both fans and foes of whole life. The posts begins with a warning that the comments may take “over 4 hours to read.”
But what is the TRUTH about life insurance returns?
In this video from from The Summit for Prosperity Economics Advisors, Todd Langford of Truth Concepts software uses a Funding calculator and a Diversification calculator – along with bluntly honest (and entertaining) commentary – to reveal the whole truth about life insurance.
This meaty, 85-minute video is well-worth your time. From life insurance to mutual funds to banking and interest rates, THIS is information that advisors and investors need to know!
If video doesn’t play above, Click this link==>> Todd Langford at The Summit
As Todd demonstrates, the numbers reveal that a modest whole life policy’s returns approximate that of a taxable account of mutual funds earning 8% or more, when taxes and fees are factored in. When an investor diversifies a typical portfolio of stocks and bonds using whole life insurance, returns may even increase. And as Todd points points out in the video, all assets are not created equally. We need to make sure we are comparing accurately. Numbers might not lie, but they can be used to tell a lot of half-truths!
Ultimately, storing cash in a whole life policy is a long-term savings and protection strategy, not an investment. However, it can be an important foundation of a prosperous personal economy.
To find out more about financial strategies involving whole life insurance, we recommend Kim Butler’s Live Your Life Insurance.
Did you enjoy the video? We welcome your comments down below.
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