Guaranteed Growth is Not the Same as
Investing in the Market
Mainstream financial planners have a tendency to look down on whole life insurance as a “bad investment.” They often conflate the possible returns of market investments with the guaranteed returns of whole life insurance.
For example, if someone had safe, lower-return bonds as part of a portfolio that also included higher-risk stocks, would anyone bat an eye at that? Yet, for some reason, the financial planning industry takes every opportunity to deride the safe, guaranteed returns of life insurance as compared to risky stock market investments.
Even given the fact that this is an apples-to-oranges comparison, it is still worth taking a look at the returns of whole life insurance as compared to market investments. When taxes and fees are factored in, I think you may be surprised to see how much you actually have to earn in the market to match the safe returns of a properly designed Whole Life Insurance policy.
(Video Source: Truth Concepts)
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