Comments on: Immediate Car Loan Finance Company at Affordable Rate

By: wodendog

wodendog — Wed, 29 Dec 2010 01:27:49 +0000

FPT, I can’t tell if you are another brainwashed Termite or if you are just being deceitful. Let’s set a few things straight. First, you say CVLI (WL) is 3-6 times as expensive as Term. Either you are using exceedingly expensive term or exceedingly cheap WL when making that statement. WL is more like 10-20 times more expensive than term. Second, in the later years of a WL policy, CV does not pay the premiums. There may be some small rinky-dink companies that do this, but not many.

By: wodendog

wodendog — Wed, 29 Dec 2010 00:34:23 +0000

Whole Life Insurance is called “Whole Life” for a reason. They are specifically structured so that what you describe (CV paying for the premium) does not happen. Dividends (not CV) typically pay for policies when owners choose to stop paying. And Dividends in WL polices always rise. I have a 30 year old WL policy. My dividends are twice that of my premium. That means I can stop paying for the policy at any time and have 1/2 the dividend pay for the policy.

By: wodendog

wodendog — Wed, 29 Dec 2010 00:25:36 +0000

The other 1/2 of the dividend continues to increase the CV and Death Benefit.

Third, your 5 “funny banking” facts are anything but. In order: 1) False: Good companies have CV in the first few months. 2) False: over the long haul, CV has a 4-6% growth rate, usually tax free. 3) True: Nice job. 4) False: Most companies can pull the money out in days. 5) Technically False (seemingly True): This takes more explanation. See my next post.

By: wodendog

wodendog — Wed, 29 Dec 2010 00:00:08 +0000

Regarding #5: For starts, the “bank” doesn’t keep anything because there is no bank in most cases. CV in a WL policy should not be thought of as a separate account from the Life Insurance. Only one contract is signed, right? CV is more like a portion of the Death Benefit that you have access to while you are still alive. Also, Death Benefits grow over time, typically as much or more than the value of the CV.

By: wodendog

wodendog — Tue, 28 Dec 2010 23:37:14 +0000

Continued . . . a 200K policy today with a 2K premium will might be worth 300K in 20 years and have 60K in CV (these figures are only for conceptual purposes). So, if this person dies, the family gets 300K (tax free).

If WL (and other CV) polices worked the way you claim they do, then no one would buy them. However, wealthy people, upper middle class people, banks, companies, and corporations buy billions is WL every year. All these groups know about and care about their money.

By: wodendog

wodendog — Tue, 28 Dec 2010 22:51:20 +0000

Billions of dollars worth of BOLI and COLI (bank/corporate owned life insurance) are purchased every year by money management professionals. BOLI and COLI, by the way, are Typically WL products. These policies insure the companies top employees in a more reliable way than BTID. CITIgroup owns Primerica (a company that sells only Level term products) yet is buys WL for it’s own employees. Why would they do that?

Your efforts are noble but your facts are incorrect.

By: insurancemike10

insurancemike10 — Tue, 28 Dec 2010 22:30:20 +0000

What a joke – first term commission are in line percentage wish with permanent. Then to compare a mutual fund with a linear 12%??? in the last 10 years mutual funds have averaged less than 2% and most with negative returns. Don’t believe these Primerica guys – term is fine but theirs is SUPER expensive and they charge you 14% to pay monthtly – they have the highest term commission in the market!!!

By: insurancemike10

insurancemike10 — Tue, 28 Dec 2010 22:22:21 +0000

Next untruth – Why would letting my insurance lapse or terminate at age 65 be a good thing? Imagine having a $1,000,000 policy one day and nothing the next? Wow that soulds like good financial planning. Google “why some investors may be fooling themselves – wsj” its a Wall St Journal article on the reality of what ave. americans return in the market.

By: insurancemike10

insurancemike10 — Tue, 28 Dec 2010 21:22:48 +0000

Here is a good Primerica example – 45 year old – $1,000,000 for 20 years and 30 years – Male for 20 = $1995, for 30 = 2435 (annually for both) – females are charged the same. Pru, ING and Trans for same policy – ave male at 20 = 1200, at 30 = 1900, Here’s the best – female ave at 20 = 900 and at 30 = 1400 – They use unisex rates which hurts the females – to pay monthly they then charge 14% of premium – run people run

By: hj1016

hj1016 — Tue, 28 Dec 2010 20:24:07 +0000

Mostly LIES!

98% of TERM insurance policies go unpaid – people outlive the term. Then, all of your premiums are LOST.

At 3:20, 5%-8% “fee”??? Policy loans cost interest, but the good cash value policies credit the same rate to the cash value as to the loans, to the loans are “wash loans”, and do not cost you a penny. Try borrowing money from the bank at 0%.

At 3:33, Why would you drop coverage? Only if you grossly mismanage your policy.

DO NOT TRUST THIS GUY!