| Myth: Cash value life insurance, like whole life, will help | | | | policy that includes mutual funds, according to |
| me retire wealthy. | | | | Consumer Federation of America, Kiplinger's Personal |
| Truth: Cash value life insurance is one of the worst | | | | Finance, and Fortune magazine. The same mutual |
| financial products available.Sadly, over 70% of the life | | | | funds outside of the policy average 12%. The Hidden |
| insurance policies sold today are cash value policies. A | | | | Catch |
| cash value policy is an insurance product that | | | | Worse yet, with whole life and universal life, the |
| packages insurance and savings together. Do not | | | | savings you finally build up after being ripped off for |
| invest money in life insurance; the returns are horrible. | | | | years don't go to your family upon your death. The |
| Your insurance person will show you wonderful | | | | only benefit paid to your family is the face value of |
| projections, but none of these policies perform as | | | | the policy. The truth is that you would be better off |
| projected.Example of Cash Value | | | | to get the $7 term policy and and put the extra $93 |
| If a 30-year-old man has $100 a month to spend on | | | | in a cookie jar! At least after 3 years you would |
| life insurance and shops the top 5 cash value | | | | have $3,000, and when you died your family would |
| companies, he will find he can purchase an average | | | | get your savings.That means when your 20-year |
| of $125,000 in insurance for his family. The pitch is to | | | | term is up, you shouldn't need life insurance at all - |
| get a policy that will build up savings for retirement, | | | | because with no kids to feed, no house payment, |
| which is what a cash value policy does. However, if | | | | and $700,000, your spouse will just have to suffer |
| this same guy purchases 20-year-level term insurance | | | | through if you die without insurance. Don't do cash |
| with coverage of $125,000, the cost will be only $7 | | | | value insurance! Buy term and invest the |
| per month, not $100. Wow! If he goes with the cash | | | | difference.This content is provided by and may be |
| value option, the other $93 per month should be in | | | | used only in its entirety with all links included. Dave |
| savings, right? Well, not really; you see, there are | | | | Ramsey is changing the face of America by helping |
| expenses. Expenses? How much? All of the $93 per | | | | people beat debt and build wealth with his best-selling |
| month disappears in commissions and expenses for | | | | book, The Total Money Makeover, and nationally |
| the first 3 years. After that, the return will average | | | | syndicated radio show, The Dave Ramsey Show. |
| 2.6% per year for whole life, 4.2% for universal life, | | | | Read more of what Dave says about life insurance. |
| and 7.4% for for the new-and-improved variable life | | | | |