Remember, you can’t …
Remember, you can’t use you DIVIDEND to pay the premiums until it is higher than the premium you pay (which normally takes about 15 years). But once you reach that point, the policy is on auto pilot, and it just takes care of itself (if you so choose).

By wodendog on Dec 12, 2008

Its because she and …
Its because she and the other nut Dave Ramsey are affiliated with these term life companies. Receiving a cut of all the there business or they probably own part of the company. Term insurance is the biggest racket. The insurance companies hardly ever pay a death benefit on a term policy. Most likely the you wont die and the premium the renew will put you in the poor house. So they say thanks for the cash and you die a year later with nothing.

By bigc2gblack on Dec 12, 2008

Did she just say …
Did she just say she is licensed in every state except Hawaii because she doesnt want to go there and take the test. She is an idiot. She knows nothing about life insurance. You only take the test once you just have to pay registration fees for all the state you want to registered in. I know why she is registered in so many states.

By bigc2gblack on Dec 12, 2008

sjorca and wodendog …
sjorca and wodendog you are both right. wodendog you have had your policy long enough to have accumulated enough cash value that the annual dividend is enough to pay the premium. Sjorca you talking about stopping premium payments before you have sufficient cash value. The premium then is taken out of the cash value as a loan where you would have the repay the premium and loan interest. Once the cash value hits zero your policy will lapse.

By bigc2gblack on Dec 12, 2008

Regarding my policy …
Regarding my policy I mentioned earlier: The CASH VALUE doesn’t pay the premium of the policy, the DIVIDEND does. It is confusing at first, I admit, but they are two separate things. Not only will the cash value not be used up, but it will continue to grow. My scanner seems to be on the fritz right now, but I’m working on it.

By wodendog on Dec 12, 2008

It not the wrong …
It not the wrong question to be asking, it’s just one of many that you should be asking. Volatility in the market can really hurt a portfolio. Your right, long term is key, but there can be a lot of bumps along the way. One or two big drops can really hinder a portfolio form getting back on track. Fortunately (unfortunately), right now we are living in a real world example of how the volatile the market can be.

By wodendog on Dec 12, 2008

Answer: 43%. Why, …
Answer: 43%. Why, you might ask? Here’s how it works. First is has to make 10%
from the third year where it went down 15%. Second, it has to make back the 15% it lost
that same year (now we’re up to 25% total). Then it has to make 10% for the current
4th year (now we are at 35%). But we’re still 8% short? Finally, it has to make 8%
back from the interest lost due to the poor performance during the 3rd year. Fascinating.

By wodendog on Dec 12, 2008

Dude, I HAVE TO SEE …
Dude, I HAVE TO SEE that policy. That doesn’t sound like a standard Whole Life policy to me. If you stop paying, a Whole Life policy will lapse the minute it has used up all its cash value as a replacement for payment (if you had any cash value at all).
That’s my experience with Whole Life. This is completely new. If that’s the case, it doesn’t look that bad.

By sjorca on Dec 12, 2008

This is the wrong …
This is the wrong question to ask. Historically, the market has rewarded LONG TERM investors. 3 years is not long term.
The record of positive results over calendar periods from Jan 01, 1937 to Dec 31, 2007 is:
1 year periods: 53 positive periods, 18 negative periods
3 year periods: 61+, 8-
5 year periods: 61+, 6-
10 year period: 62+, 0- … ZERO!
I know past performances can’t predict the future, but we’ve come out from WORSE situations in the past. LONG TERM is the key!
Source: Morningstar

By sjorca on Dec 12, 2008

Here’s a question …
Here’s a question for everyone. If you have a mutual fund that grows 10% the first
year, 10% the second, losses 15 % the third year, what “percentage” does it need to
make back during the 4th year in order to get back on track (the 10% growth per year it was originally on). I’ll post the answer tomorrow. The answer should be in XX% form.

By wodendog on Dec 12, 2008

The monthly …
The monthly payments were/are around $12 (or $150 a year). If I stop paying for the policy now, it still grows, but it will grow “less efficiently”. So instead of being worth $200K when I retire it might be $150 (I’m talking of death benefit now). Yes, my beneficiaries will get the death benefit, not the cash value. As of today, regarding the cash value, every $1 I give them, they give me $4 back. Over time that discrepancy only widens in my favor. I think it’s pretty cool.

By wodendog on Dec 12, 2008

So what happens to …
So what happens to all the payments you made between age 1 and 30? Do you get that back if you stop the policy? Do your beneficiaries receive it? How much were your monthly payments?

By astroman30 on Dec 12, 2008

No wonder something …
No wonder something smelled funny (just kidding)! I’m in the east too. I was 2:00 am when I logged out. But it was nice talking to you.

By sjorca on Dec 12, 2008

But I’ve already …
But I’ve already said why I think that those reasons are but the shell of the whole thing. There’s a lot more underneath them.

By sjorca on Dec 12, 2008

I don’t only get my …
I don’t only get my opinions from those videos. I happen to agree with them so I put them in my favorites. As far as my experience goes, I have only seen these bad cash value products (that may be a hint of how many of those are out there). I have even met people who worked in these companies (reputable ones) who decided to leave because of what I have written do far. That’s why I’m curious to see what you’ve got.

By sjorca on Dec 12, 2008

You can probably …
You can probably scan it and “zip” it with a password. Then email me the files with the password.

By sjorca on Dec 12, 2008

Well, I played …
Well, I played soccer tonight and still have to shower before bed (I’m on east cost time). So, I’ll say goodnight. I check this posting every day now, so I’m sure our powerful brains will clash again. I’ll look into getting some info for you in the future. Take it easy.

By wodendog on Dec 12, 2008

Haha, I just …
Haha, I just clicked on you name and saw you “favorite” videos. Now I see why you feel the way you do. It’s good that you are looking into all of this. At the end of the buying term and investing the difference isn’t a bad thing, it’s only different way of doing almost the same thing.

By wodendog on Dec 12, 2008

I’m sure I can find …
I’m sure I can find a way get something to you. I’m just not sure the best way to do it. I’m not in the Business anymore, so I only have hard copies lying around of polices I presented to people. I still have some contacts though and I’m sure we can work something out.

By wodendog on Dec 12, 2008

We are talking …
We are talking about the same thing. Some companies put out bad products (I mentioned this happens). But the good companies put most policies in force and they all have death benefits that increase. My policy I’m had since age 1 started at $10,000, now at age 30 it is $40,000 (just death benfit, not cash value). If I wanted to stop making payments “right now” I could, and it would still last till the day I die.

By wodendog on Dec 12, 2008

Fair enough.
Fair enough.

By sjorca on Dec 12, 2008

I know, it’s hard.
…
I know, it’s hard.

You can probably send me a copy (with all the personal info removed, of course) and we can discuss it later.

We’ll figure something out.

By sjorca on Dec 12, 2008

At the end of the …
At the end of the day here are the benefits of WL. 1) A death benefit that never expires and it grows over time (it’s also the cheapest way to pass on money when you die at an old age). 2) Over time you will build up a Cash value that you have access to in case you need it. 3) You can do both over the the course of a lifetime. This is what makes WL unique. We can argue about the “need” for a death benefit or the “process” of taking out cash, or the “growth”, but let’s not.

By wodendog on Dec 12, 2008

Are we talking …
Are we talking about the same thing? The whole life I’m talking about is the traditional one on which you pay the same premium for the life of the policy and the face amount remains the same. This sounds more like a Variable Universal policy (although not exactly). I’m curious, do you have a sample I can take a look at?

By sjorca on Dec 12, 2008

Talking on youtube …
Talking on youtube like this I mean.

By wodendog on Dec 12, 2008