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Ask Dave

Why is Whole Life Insurance Not Smart?

Whole life insurance policies are never a good idea. Dave sets the facts straight.

QUESTION: Maria wants to know what Dave thinks about whole life policies.  Is there ever a time that whole life insurance is a good idea?

ANSWER: Whole life is one of the WORST financial products on the market today.  There is never a time when it is financially wise to have a whole life policy.

The only time you should have whole life is if you already have one and can’t get any other form of life insurance.  Only if you’re stuck with it should you have whole life. 

For example, a 30-year-old person can buy a $125,000 whole life policy for $100 a month.  That same person can buy a 20-year term policy for $7 a month and invest the remaining $93 dollars.