In this video, Dave Ramsey talks to Cynthia in Charleston. She has an indexed universal life policy with a death benefit and wants Dave to explain if that’s a good way to go.
Dave says not to keep it because of all the fees it will constantly accrue, plus the insurance is expensive. It’s hard to take those investments apart and compare them — when you get investments and insurance together, the investments do not perform as they should.
If you went straight to the mutual funds, you won’t have to pay the fees that come along with insurance.
Usually, the insurance side factors in ART, annual rate of return. The older you get, the more it costs to cover you. And, because its more expensive to cover you each year, less and less goes to investments in this product.
What Dave recommends is Level Term, meaning you pay the same amount each month, which you can get by going and shopping quotes for 10-12x your income.
Once your term life policy in in place, cancel the other policy and invest the difference. Even if you have coverage at work, make sure you have some outside of work in case of a medical event that would make you uninsurable in the marketplace.
The Dave Ramsey Show channel will change the way you experience one of the most popular radio shows in the country! Watch video profiles of debt-free callers and see them call in live from Ramsey Solutions. The show live streams on YouTube M-F 2-5pm ET! You can stream it live here:
Did you miss the latest Ramsey Show episode? Don’t worry—we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at:
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
• The Ramsey Show (Full Episodes):
• The Dr. John Delony Show:
• The Rachel Cruze Show:
• Anthony ONeal:
• The Ken Coleman Show:
• The Christy Wright Show:
• EntreLeadership:
source
