Insurance companies invest your premiums in bonds and real estate, keep the spread, and return scraps to you. You’d do better owning those assets directly through index funds.
Problem 3: The “Forced Savings” Myth
Agents argue permanent insurance forces undisciplined people to save. This is condescending and false. Automated investment accounts, 401(k) payroll deductions, and Roth IRA auto-contributions achieve the same forced savings without the 5-15x cost markup or terrible returns.
If you need a “parent” to force you to save, hire a fee-only financial advisor for $200/hour. Don’t pay an insurance company $300,000 over 30 years for the same discipline.