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Title: Why Infinite Banking is a SCAM!
Introduction
Infinite Banking, a concept popularized by certain financial gurus and life insurance companies, has gained attention as a financial strategy. However, the touted benefits of this approach often overshadow the underlying risks and drawbacks. This article aims to debunk the myth surrounding Infinite Banking and shed light on why it can be considered a scam.
1. Misleading Terminology
One deceptive aspect of Infinite Banking is the terminology used. Advocates often refer to it as a “banking system” or compare it to traditional banking, which creates the illusion that it provides similar security and returns. In reality, these comparisons are misleading and serve as a smoke screen to lure unsuspecting individuals into a complex financial arrangement.
2. Opaque and Complex Structure
The structure of Infinite Banking can be incredibly convoluted, making it difficult for the average person to fully understand the intricacies involved. This lack of transparency leaves individuals vulnerable to the manipulation of financial institutions and agents. Without a clear understanding of how Infinite Banking works, clients may unknowingly make decisions that are not in their best interest.
3. High Costs and Fees
A significant disadvantage of Infinite Banking is its exorbitant costs and fees. Life insurance policies, which form the foundation of this strategy, often come with substantial premiums and fees. Additionally, policyholders are required to pay for administrative charges, insurance agent commissions, and other hidden costs. All these expenses significantly reduce the potential returns and impact the overall value of the investment.
4. Limited Return on Investment
Infinite Banking proponents argue that participating in this strategy can deliver high returns through compounding interest. However, the reality is quite different. While life insurance policies may offer some cash value accumulation, the returns are generally modest compared to other investment vehicles such as stocks, real estate, or even traditional savings accounts. This limitation undermines the financial growth potential for individuals seeking substantial returns.
5. Dependency on Insurance Policies
Infinite Banking operates under the assumption that individuals will continue to pay their insurance premiums for extended periods to maximize returns. However, unforeseen financial circumstances or changes in personal situations can force policyholders to discontinue payments or surrender the policy altogether. In such cases, clients could lose a significant portion or their entire investment, negating the purpose of the infinite banking strategy.
6. Lacking Regulation
Unlike more established financial instruments and strategies, Infinite Banking has significantly less regulatory oversight. This lack of regulation raises concerns about potential predatory practices by insurance companies and agents, as well as the safeguarding of policyholders’ interests. Without strict oversight, individuals engaging in Infinite Banking may be subject to manipulation and unethical business practices.
Conclusion
While Infinite Banking may promise financial security and growth, the reality is often quite different. Its deceptive terminology, complex structure, high costs, limited returns, dependency on policy payments, and lack of regulation are all red flags that caution against embracing this strategy. When considering investment options, it’s essential to thoroughly research and critically evaluate any financial concept before committing to it.
The problem with Dave’s response is that he doesn’t address so many other aspect of the banking concept. It’s like half truth and for people who doesn’t know will just take that as the answer when there’s more to it to address what he is saying.
It’s abundantly clear in this 10 min clip that Davey knows nothing about what he is talking about. He’s the scam! Everything he said here is a complete lie! And Davey’s process is all about scarcity and accumulation so the IRS can tax you more in retirement. Go ahead and get screwed by Davey…
Sounds like a hybrid ponzi scheme.
Please tell us Dave who makes the "dividend" when you buy insurance with Zander or Nationwide? The private owners or the stock owners. All private or public companies that are not mutual companies do. Math must hurt his head as the math works with whole life IF constructed properly. When you read Nelson Nash's book "Becoming your own Bank" you will see Dave knows nothing about this topic yet comes across as an expert. Ask Dave next time you call in about why he filed for Bankruptcy when he got overleveraged on his real estate holdings early in life. If he had purchased these properties via his whole life policies vs bank notes, the banks would not have been able to take his properties by forcing his loans to be called. Stick to mutual funds Dave you're showing your ignorance on this topic.
"You're right…uh-huh….yes….absolutely…yeah"
David Ramsey has a WLI policy for sure.
It all depends on where the split is and what the mAC is.
Hmmmm why the huge assumption that insurance companies do not lend their Money or invest it anywhere else? I am pretty sure they are not simply collecting premiums and paying out death benefits! – Misleading I think
Did Dave say "Jesus your kidding me "Or" Jeez your kidding me"?
The mere fact the IRS won’t classify it as income should tell you something.
Hard to disagree with Dave on this. Insurance companies are a scam 99-times out of 10.
There are so many concerning nuances with perm life…for example, it's 'return of premium' technically, however, you are only getting 'dividends' on the cash value, not the premiums you've paid. Even policies that break even earlier than most, such as in years 6 or 7, won't see dividends applied to what you've put in until that point.
Dave thinks he’s all powerful all knowing for real
THE INSURANCE COMPANY''s AS NOT EVER HAD PROFIT's THE LAW THEY HOLD 9 TIME's THE AMOUNT OF POLICY's THIS NOT PROFIT's THIS IS GUARANTEES PUBLIC GET PAYED FOR THE REASON's OF THE POLICY CAP WAGES WITH PUBLIC JOB's' THE OFFICE AND CEO's ARE GONE TODAY . ASK YOUR SELF WITH THIS AND MONEY THAT WAS IN THE ASIAN COMMUNITY STOLEN AT LEADER AT UN LEVEL's ! AS THIS THE CONVICT's STILL STEALING BAIL OUT's ON PUBLIC TAXES THINK THEY BEEN OVER PAYED AS THEM SUIT's BEEN STEALING TIME SLADE THEM FOOL's AS MALL COP's AS NOT EVER DID THE JOB'' THEM ACTOR''s FBI RCMP M15 ALL UN COURT's ALL THE CRIME's ON MY SELF WITH THE PUBLIC ! LOOK AT FACTS THE WHITE HOUSE SUIT's ARE STILH STEALING SAYING THEY NEED SHUT THE GOVERNMENT's DOWN GREAT GET THEM PUNK's DEAD AND GONE WITH ALL THEM CRIME SCAMMER''s ! AS HOLY SPIRIT REMOVED ALL OTHER SPIRITS AND AFTER LIFE WITH WASTE THEY CALL FAT CAT THAT DUMB KITTY STOOGE's BROTHER's UNDER THE SKIN ARE LAND FILL ! HEAR AT HOME ALL WORLD''s ! STOOGE''s AND PUNK's DEALING AND STEALING
THE BANKS TRUST COMPANY' CENTRAL BANK's ALL BOOK''s ALL MONEY WHERE ITS FROM WITH THE CRIME's ARE PUBLIC INFO ALL SEE ON WEB INTERNET IN PRINT ! AS CREDIT UNION''s ARE PUBLIC INFO ! THE TAXES STOLEN OR BAILED OUT THIS STOCK's SCAMMER's WITH ALL THE PUNK's' CRIME's DRUG SCUM GOVERNMENT's AND ROYAL FOIL's WHO THEY STOLEN FROM ! THIS TODAY AS SENDING INFO PUBLIC FRONT PAGE NEW's ! MON 26 2023
It's laughable at how little Dave Ramsey knows about life insurance! Prudential is not a mutual company for starters. . . And a dividend is not just a return of excess premiums (which is done that way for the tax benefit) There are 3 parts that make up the dividend. First, is how the company manages death claims. (mortality) Second is how they manage expenses, and third is based on the investment returns of the company. Dave's a joke! That's why he has a massive law suit stating him in the face for his blatant dishonesty
I have a great deal of respect for Dave, and his common sense approach to getting out of debt has helped so many. That being said, in regard to life insurance much of his information is simply wrong. The primary issue I have with this is the small bubble just below the video. "Don't waste money on whole life insurance. Get a term life policy today:" (just click this link because I get paid for funneling you there). Hmm… not saying for SURE it's a conflict of interest… What about all the money you save by purchasing a cheaper term policy? Dave always says to "buy term and invest the rest", but invest where? With SmartVestor, where the "pros" pay a fee to be advertised to Dave's followers.
Infinite banking and whole life policies are NOT for every situation, and they are not for everyone. It is my opinion that most people can benefit from the concept ESPECIALLY if implemented early in life. Do yourself a favor and do your own research instead of relying solely on financial entertainers (who get paid for advertising just like any other entertainer). Nelson Nash's "Becoming Your Own Banker" is a great place to start in understanding exactly what the infinite banking concept is and is not.
It isn't a scam. It may well be difficult to grasp the concept because it isn't intuitive and we've not been brought up to think this way, but that isn't the definition of a scam.
DR disappoints more and more every day.
Dave, you say you have the heart of a teacher, so stop decreeing and start teaching. 'K?
The way I see it, if someone is trying really hard to convince you that you’ll make money off it, they’re probably trying to take you for a ride.
What is the difference between buying insurance or stocks that pay dividends
this guys just wants to stay negative no matter what… fooling people around