Life Insurance Myth 4b: "I can get cheaper whole life with 'vanishing premiums'."

Updated: Oct 15, 2020

This post is an extension of my previous post regarding UL/IUL ongoing expenses, and I primarily talked about the funding levels being the main differentiation.

Whole life zealots LOVE to use these sales tactics of the 1980's as a way to hold up whole life as the "superior choice".

And I'd like to bring up another term: "Vanishing Premium".

"Vanishing Premiums" is really a misnomer. What "Vanishing Premiums" on life insurance was all about... was using dividends to pay premiums after the policy has grown enough. In this way, at some point in the future, you (theoretically) wouldn't have to pay for your coverage out of pocket anymore.