The Truth About Cash Value Life Insurance
Don't invest in life insurance
Cash value life insurance is a bad investment that combines insurance and savings. The returns are horrible, and the expenses are high. It's better to get term life insurance and invest the difference in a mutual fund.
- Don't invest in life insurance
- Term life insurance is a better option
- Mutual funds are a better investment than cash value life insurance
- Understand the risks of cash value life insuranceLearn about the high expenses and low returns of cash value life insurancePro tipGet term life insurance insteadWarningDon't invest in cash value life insurance
- Get term life insuranceTerm life insurance is a better option than cash value life insurancePro tipShop around for the best ratesWarningDon't invest in cash value life insurance
- Invest the difference in a mutual fundMutual funds are a better investment than cash value life insurancePro tipDiversify your portfolioWarningDon't invest in cash value life insurance
A thirty-year-old man has $100 per month to spend on life insurance. He can purchase $125,000 in term life insurance for $10 per month, or he can get a cash value life insurance policy that will cost $100 per month. The cash value policy will have high expenses and low returns, making it a bad investment.
Sara pays $8,000 for a prepaid funeral. If she had invested the money in a mutual fund instead, it would be worth $842,300 by the time she dies.
Dave Ramsey has seen many people get ripped off by cash value life insurance policies. He wants to warn others about the dangers of this investment.