Life Insurance Consultant - Dorlan H. Francis: Whole Life ...

by dhfken

It is extremely naive to believe that in the pricing of a product which exist since 1583, that the cheaper product is better than the more expensive one. The first thing to understand is that ALL LIFE INSURANCE PLANS ARE TERM PLANS. There are short Term plans and long Term plans. Short Term plans may be renewed or dumped at the end of the Term. When you pay less for a Term plan, it is just a reflection that the probability of you dieing at that point in time is that much less. But as soon as the probability of death increases so too will the premiums, some Term plan premium could increase by up to 12,000%. To buy a Term plan that will expire for an event that is CERTAIN to happen - death, is stupidity on stilts.

Americans have fallen into a mode where they want every thing CHEAP and EASY. As a result every TV personality, every radio host and every news paper columnist know that in order to guarantee viewer ship, listener ship and readership he just has to offer CHEAP and Easy. Life Insurance because of the way it is priced provides ready cannon fodder for any unscrupulous individual who wants to drive up his/her ratings. Every Tom, Dick and Harry regardless of how ignorant he is about Life Insurance feels he can give life insurance advice.

The practice of saving is hard. It is NOT a natural tendency of mankind to save. That is why there was limited prosperity before the development of WHOLE LIFE INSURANCE. Whole Life causes forced savings. That is why countries where the people buy large amounts of Whole life insurance are more prosperous than countries where the people do not.

The talk about investing in other vehicle at higher hoped for returns is DELUSIONAL. First of all the money is NOT saved. It is not invested it is INGESTED. Secondly higher returns exist only in theory. For Madoff to consistently pay 10% he operated a Ponzi scheme. Other money managers knew he was doing something wrong because they were not making that kind of return. The best one can hope for is about 8-10% return. A participating Whole Life can give that kind of return from about 10 years onwards. People seem to think that that time line is too long. But tell me this if you are saving for the future why do you want to realize maximum returns sooner than 10 years? The only reason you would want your money sooner is to consume it.

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