What’s The Best Type Of Life Insurance?
Posted December 19, 2009 – 4:18 am in: structured settlements FAQI’ve been reading about different types of life insurance, and talk about a confusing bunch of information. Basically, I would like a life insurance policy that if I die, my family is taken care of, but it also builds up equity that I can cash out or use when I retire. Any suggestions as to what type that is?
Tags: Best, Insurance, Life, Type, What's
7 Comments
First you need to seperate your goals one goal is to have money for your loved ones in case you die. 2nd goal is to have money for when you retire.
1st goal – The best way to do that is use term life insurance. Instead of paying for ripoff whole life/ universal. 2nd goal – Stick the extra money that you would have to pay for whole life insurance into a Roth IRA which is invested in growth mutual funds. A good/safe company to start with low fees is Vanguard.
Hey! I tried to answer, but your email hasn’t been confirmed it said. Oh well…….*shrugs*
And I logged onto this question so I can learn from the info Monitor gets! I’m so inept when it comes to insurance. I’ll add this to my watch list so I can learn too!!
(However, we Nashvillians hope to live a long long life right??)
If you are looking for a life policy that builds equity here is some good info – http://www.findlocalinsurance.com/permli…
As far as amounts of coverage, make sure to meet with a professional that can review your situation to help you come up with proper coverage. Here is a directory of life agents – http://www.insuremylife.org
The Buy Term and Invest the Difference approach ONLY makes sense if you can be certain that you will no longer need any insurance coverage after the initial level term period ends.
If you cannot be sure of this, Variable Universal Life outperforms the Buy Term scenario HANDS DOWN. If you want proof, I laid it all out in the Comments section of a question posed by Trade Info a week ago in this forum. Look it up.
Many insurance agents jump on the Buy Term bandwagon because it is an easy product to understand and sell. They do not have the knowledge and aptitude to understand the VUL let alone explain it to clients.
Do yourself a favor and find a Financial Planner in your area to assist you. Try the Planner Search feature at http://www.fpanet.org
AVOID anyone who tells you:
ONLY buy term
NEVER buy term
buy coverage equal to your salary multiplied by some number
Term if you only need it for a certain period of time.
Variable Universal Life if you will be a millionaire and has an estate tax problem.
Whole Life if you will be a millionaire and has an estate tax problem and you are conservative investor.
Borgerm has addressed the subject in a simple but very correct way. I can’t anything else except to encourage you to follow his or her advice.
the kind you never need…
Just kidding…
http://users.adelphia.net/~tobefree