You Can Actually Lose Money with a Whole Life Policy
Dave Ramsey explains that the average whole life insurance policy will only gain somewhere between two to seven percent. In some cases, you will even end up with less money than what you put into it. The same mutual fund with an independent broker will average around ten to twelve percent growth each year.
This is because you will lose about three years’ worth of earnings due to commissions and overhead expenses. Whole life insurance companies are using your money to make money for themselves and then charging you a fee for it.
Term Life Insurance is the Better Choice
Term life insurance is just basic insurance. It will make sure you are covered if anything happens to you, and it will only cost a small fraction of the price. It gives you peace of mind you deserve while freeing up more of your money for real investment opportunities.