Consumers rarely wake up one day and decide on their own, "Hey, I need permanent life insurance; 401(k)s are a scam". This comparison is almost assuredly the result of the dogged marketing tactics of some unscrupulous insurance salespeople, online and offline.
Permanent life insurance is being pushed on consumers for whom it is likely inappropriate all across social media. These insurance salespeople or unlicensed/unregistered “finfluencers” often outright claim 401(k)s and similar tax-advantaged retirement accounts are some kind of scam.
A Q&A with Hesperian Wealth founder Eric Figueroa recently published on the MoneyGeek website sets the record straight. If you’ve been in conversation with one of these fast-talking, self-proclaimed financial gurus (or even an honest but pushy insurance person just trying to make a sale), read Eric’s comments first before making a final decision. You’ll hear the impartial take of a fiduciary financial planner who has sworn to put his clients’ interests first and who isn’t compensated by commissions to sell permanent life insurance to anything that breathes.
There are good insurance folks: I refer my clients to the independent insurance consultant I trust or the insurance carriers I use myself or would recommend my own family to.
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