Term Insurance VS. Permanent life Ins

Explaining the difference between short term life insurance and long term life insurance

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• life insurance 101

[mattar12]

Spoken like a good life insurance salesman. I bet you actually believe this crap. Why would you need life insurance when you are 60 years old? Flawed logic Dan. Don't review your life insurance policy with your life insurance agent. Review it with your financial planner. Any good CFP will work!!!

[dannozaki1]

@mattar12 Spoken like a true CFP that wants you to invest your money and have them lose it in the market for you. Life insurance is used for many other things like wealth transfers tax free. And the new type of life insurance protects against Heart Attack, Stoke and Cancer. Something that CFP's should learn about.

[KCrenshaw09]

When your term life insurance runs out you are supposed to not need life insurance anymore! Your kids are old, your debts paid off, and you should have money saved for yourself for retirement and maybe even some to leave to your kids.

If a person needs to renew a policy when they're old that means they haven't saved enough or saved at all. Life Insurance is only to help your family if you die early but if you don't then you should have all that money saved up and be able to cover yourself.

[dannozaki1]

@KCrenshaw09 The key word in your sentence you "should" have your debts paid off you "should" have money saved. Life insurance is not only for premature death. The new type of life insurance pays for Disability, provides money for assistance with long term care. Which will eat up money saved in a heart beat.

[Athletictrainer09]

How about this, when you sit down and ask for your life agent to explain how the different policies work, pull out a tape recorder. If the agent is afraid to do this on tape, find a new agent.

[Wolfeman24x]

I knew a lady whom bought a $600,000 cash value life insurance policy when she was 44 years of age...her premiums on her policy were $7,500/yr. At the age of 64, 20 years later, she had $114,000 in her cash value, with interest and all. Sounds like a pretty good deal $600,000 in life insurance and $114,000 in the cash value. Not too shabby! Until you look at the facts and realize that for $600,000 on a 20 year term life policy would have been $950/yr...that's a difference of $6,550/yr. If

[dannozaki1]

@Duderstradt Nobody here is talking about whole life. We are talking about the new type of life insurance universal life. Also find out if your policy pays out if you get cancer, stroke or heart attack and don't DIE. My pays out without having to die.

[Duderstradt]

@mattar12 Whole-life agents crack me up.

[Duderstradt]

@dannozaki1 2) You need term life because you'll be protected during your peek years so at the end of your term, your investments would self-insure you. You don't like 250k in life insurance when you're 65 years old. Some people just don't know that so it's not their fault. But what's worse is these whole life agents are actually screwing people over and hell, some of the agents don't even know how their policies even work, otherwise they wouldn't sell them. If otherwise, go watch Dave Ramsey :P

[Duderstradt]

@dannozaki1 If you don't have a conflicting medical problem, you're able to obtain life insurance. If you get cancer or die of a stroke or whatever, the company (at least my company does :) ) would pay out. Whole life is a huge ripoff because you're getting charged a MUCH higher premium for a small amount of coverage, the money that's in the cash account goes to the company if you die and if you borrow any money FROM that account, you get charged interest. Yeah I'll stick with my mutual fund.