IPB 012: Whole Life Insurance vs. the Stock Market

We've been asked to compare whole life insurance vs. the stock market too many times not to make at least one episode about it. It's not a comparison that we're wild about making.

First, it makes it seem that it's an us vs. them sort of scenario. That couldn't be further from the truth.

We believe that investing in the market certainly has its place and we've both sold investments in the past.

Secondly, we think that comparing the two just based on the returns doesn't do either any justice. Whole life insurance and the stock market are so different. The risk profiles of each are not even closely related.

I guess the comparison is often made because insurance agents and investment advisors are often fighting over the same money. That's the most logical conclusion that I have for explaining the need to compare.


To give our audience what they want, this entire episode is dedicated to that comparison. Now, there are certainly a lot of numbers that have to accompany this discussion. Rather than reinvent the wheel in that regard, I'm going to reference you to a past blog post.

Back in 2013, Brandon wrote: Blended Whole Life Insurance Versus the Stock Market

Much of the discussion in today's podcast is framed by the research that was done for that post. To be sure, the information is a little outdated, however, this is much more of a philosophical discussion anyway. You'll be able to understand the important points if you refer back to that post.

If you find our podcast useful and you have a particular topic you'd like us to cover, please write to us and let us know. We'll do our best to make sure it gets into our calendar.

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