Is whole life insurance a scam or a worthwhile investment? You may have heard us talk about whole life insurance before, but we’d bet we’re not the only ones mentioning it to you. Your financial advisor, business partner, parents, or fellow investors could have also let you in on the “amazing benefits” that only whole life insurance can provide. But how much of this is fact, and how much is fiction? And, if whole life insurance is such a bulletproof investment, why not buy a policy right now instead of investing for retirement?

We brought on Dr. Jim Dahle, better known as, “The White Coat Investor,” to explain the truth behind the whole life insurance system and whether or not it really is a scam. Jim started his financial education during his medical school residency after realizing that almost every financial professional was trying to take advantage of him. Whether it was a real estate agent, financial advisor, or accountant, Jim felt like he couldn’t hold his own when in casual conversation with them. So, he beefed up his knowledge of investing and finance and started “The White Coat Investor” to help doctors, just like him, make sense of their cents.

Early in his investing career, Jim spent over seven years paying into a high-priced whole life insurance policy, only to realize that he made a negative return. Now, he’s here to educate EVERY investor on what whole life insurance really is, who truly needs it, and the MASSIVE commissions salespeople make when selling you a policy. If you have whole life insurance, you NEED to hear this. And if you don’t, you’ll now understand why it’s pushed so hard on everyday Americans.

Show Notes at:
https://www.biggerpockets.com/blog/money-390?utm_source=youtube&utm_medium=description&utm_campaign=none
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Episodes Mentioned in Today’s Show:
Kyle Mast (FInd a Financial Planner): https://www.biggerpockets.com/blog/biggerpockets-money-podcast-41-find-certified-financial-planner-cfpkyle-mast?utm_source=youtube&utm_medium=description&utm_campaign=none
Joe Saul-Sehy (Life Insurance): https://www.biggerpockets.com/blog/biggerpockets-money-podcast-139-joe-saul-sehy?utm_source=youtube&utm_medium=description&utm_campaign=none
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Why All Real Estate Investors Should Have Solid Life Insurance Coverage:
https://www.biggerpockets.com/blog/real-estate-investors-should-have-life-insurance-coverage?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Jim:
Books: https://shop.whitecoatinvestor.com/collections/all
Podcast: https://www.whitecoatinvestor.com/wci-podcast/
Website: https://www.whitecoatinvestor.com/
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Why Whole Life Insurance Is a Bad Investment—Debunking the Myths:
https://www.whitecoatinvestor.com/debunking-the-myths-of-whole-life-insurance/
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Mindy: https://www.biggerpockets.com/users/mindyjensen?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode #390

00:00 Intro
01:29 Money Moment
02:10 Learning the Money Language
06:25 Whole Life Insurance Explained
12:33The Real Reason You’re Sold Whole Life Insurance
16:29 Who Should Get Whole Life Insurance?
20:50 The “Infinite Banking” Illusion
31:18 Refuting the Sales Pitches
38:07 When to Dump Your Policy
41:43 Breaking Up With Your Advisor
53:02 Most Policies Don’t Make It!
54:27 Fee-Based vs. Fee-Only Advisors
55:42 Connect with Jim!
56:21 The RIGHT Way to Buy Life Insurance