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Podcast Episode 135: Life Insurance as an Asset Class with Dick Weber

| April 17, 2019
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Episode Summary

In this episode of the Sound Financial Bites Podcast, Paul and Cory welcome Dick Weber, a financial planner and life insurance advisor. Dick’s firm, Ethical Edge, helps to improve the integrity of communication and understanding of today’s life insurance policies. Paul, Cory and Dick talk about life insurance as an asset class, financial strategies, and volatility buffers.

What Was Covered

  • 01:26 – Paul introduces today’s guest, Dick Weber
  • 03:17 – Dick breaks down how his consulting business works
  • 06:09 – Paul summarizes how Dick’s consulting firm operates
  • 07:21 – Why there is such an appetite for life insurance among the wealthy
  • 13:05 – The Unique Asset Class Concept
  • 15:32 – Why whole life insurance is attractive to the wealthy as an additional level of diversification
  • 18:53 – Dick addresses financial publications that claim life insurance is not a good investment
  • 21:55 – The misconception about life insurance as an investment
  • 24:17 – Cory interrupts the podcast to provide the audience with a special offer
  • 25:38 – Dick talks about some of his firm’s financial research
  • 27:34 – The strategy of buying term life insurance (rather than whole life insurance) and investing the difference
  • 30:32 – The difference in benefits from term and whole life insurance
  • 32:57 – Defining asset classes  
  • 37:03 – Common misconceptions about returns from whole life insurance
  • 41:36 – Why many life insurance policies are underfunded
  • 46:09 – How whole life insurance can pay a competitive rate of return in this model 
  • 47:27 – How Dick views financial zealots who do not believe in the benefits of whole life insurance
  • 51:20 – Volatility buffers explained
  • 55:28 – Key takeaways from today’s episode
  • 57:30 – Paul invites the audience to subscribe and review the Sound Financial Bites Podcast
  • 59:03 – Paul reads a featured review left on the Sound Financial Bites Podcast

Tweetables

“It [life insurance] is a portfolio asset, either literally or figuratively.”

“I have never found an advocate or a zealot of buy term and invest the difference who ever actually did it for more than one year.”

“Life insurance has been graced with a tax advantage that says that the increase in cash value over time is not taxed. And, if the policy is kept until death, all of the increases that might have been taxed within the cash value are, in essence, forgiven.”

“You have very little control over the stock market. We know it’ll go up. We know it’ll go down. Tends to go up five to seven times more often than it goes down; that’s the good news.”

Links

Dick’s Website

Sound Financial Group’s Website for a Financial Inquiry Call - [email protected] (Inquiry in the subject)

Sound Financial Group on Facebook

Sound Financial Group on LinkedIn

Cape Not Required (Cory’s Book)

Sound Financial Advice (Paul’s Book)

Clockwork

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