Often it seems that the world out there is life insurance for the whole of life, and radio has done a great job to promote term insurance as end of all and best insurance out there. But most of these so-called gurus are paid to promote forward-term insurance. If term insurance is so good, do we really need life insurance?
Lets take a look at the whole life insurance and some of the benefits and see if we can not find anything good in what paid spokesman calls crap.
The entire life insurance exists
The entire life insurance is for one reason. I really mean, if it were completely useless, would it still be available? The obvious answer is no. However, there is more than just existing.
By definition, the whole life insurance is meant to be your whole life. The problems are the mentality we have in America today, and the radio does a good job of marketing it.
People really think its easy to get a 12 percent return on their money. This is a big mistake in our thinking. So what happens, people buy term insurance at a younger age and then turn to full or permanent insurance when they are older.
What is the problem with this? Well, insurance becomes more expensive when you grow older. Then people turn into insurance when they are young and then as they grow older and they see that they will not be able to retire when they thought they should, they still need insurance.
The problem is that the insurance is much more expensive. This is a big blow to them.
The world today
Many Americans today can not retire. Why? Because they ate up the purchase time and invested the difference and killed them.
Now they are working and many of them can not afford insurance anymore. Im not here to discuss the financial aspect of their decisions, so I will avoid it. But lets talk about insurance.
Termination insurance is extremely expensive when you beat 60 plus. So what happens if youre in debt and still work at 70? Insurance to cover these debts is astronomical.
So you just go ahead and if you die with guilt your family will not get anything. This is an unfortunate end to a precious life.
Many of these people thought their investments would be so good that they would be millionaires when they were 65 years old. But the markets were not that nice for them.
Whole life insurance
So how does whole life insurance help this sad story to turn a little? Simply, its always there.
If you bought the entire life insurance when you were young, the cost would be higher than the term insurance, but that cost would not change. You would have the insurance for the rest of your life.
However, there are some other benefits for the entire life insurance you may not be aware of.
Income on your money
Most people are not aware that after about 15-20 years of owning a typical health insurance policy they have built up a cash value that corresponds to their premiums. What does this mean? Well, that means you have not really lost any money if you enter the time.
The entire insurance is intended to have a cash value, and the cash value is supposed to grow. This can be a big plus for you.
There is also a way to shorten this timeframe and actually use entire insurance as an investment, a strategy called to become your own bank, but you can look at it yourself.
I often think there is another mentality with people who buy full insurance. Often these people prepare for the future, not just right now.
I do not say that your whole life will change you, but there is something for the fact that many of these people are very tomorrow oriented. There is a great need for us in the US to plan for our future, a thought process we miss today.
Your whole life
The last point is that the entire life insurance lasts your whole life, no matter what. I have never understood arguments against having insurance. If you knew that by putting 100k away during your lifetime, did you guarantee that you would send 300k to your heirs, where is the disadvantage of that?
Having the insurance to cover shoulder while you are young, and then only have it as a book egg when you are indebted, is a very effective strategy that you and your family can be happy with.
This lived egg will be guaranteed to be there when you die, whether you are young or old.
The whole insurance is not the devil
In the end, permanent insurance must be seen as a tool. It is a very real tool for certain types of people. In my opinion, people must understand permanent insurance more, and how whole life insurance companies work. You find quite quickly that many big banks invest their most trusted capital in the life insurance companies because of their stability.
The entire life insurance has some amazing benefits, and by looking at it yourself you can find something new and something that suits you b