Comments on: One Critical Thing You Need to Know About Life Insurance http://genxfinance.com/one-critical-thing-you-need-to-know-about-life-insurance/ Helping a unique generation achieve financial independence. Thu, 24 May 2012 01:09:21 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: sow http://genxfinance.com/one-critical-thing-you-need-to-know-about-life-insurance/comment-page-1/#comment-75411 sow Wed, 28 May 2008 17:32:49 +0000 http://genxfinance.com/2008/02/20/one-critical-thing-you-need-to-know-about-life-insurance/#comment-75411 First, I'll say that everyone needs zero life insurance. Just like everyone needs zero auto insurance and zero home insurance. But why do we buy it? It's because we want it. We want to insure against lost value and production. Insurance shouldn't be viewed as "needs" based, it's really a "wants" based product. Second, before we say that whole life policies are a total waste, let's look at term life insurance. Want to know when you get your greatest return from a term policy? Day one, right after you sign the policy. If you die on your way home from signing it, you've realized your greatest return. Any day after that, the policy is a pure expense with no way of recapturing those premiums. Whole life policies can be used as a tool for production. Banks invest heavily in them. They have their own departments (BOLI - Bank Owned Life Insurance). I think we could learn something from the banks. Our whole life policies are the swiss army knife in our toolbox. One tool that can do many things. First, I’ll say that everyone needs zero life insurance. Just like everyone needs zero auto insurance and zero home insurance. But why do we buy it? It’s because we want it. We want to insure against lost value and production. Insurance shouldn’t be viewed as “needs” based, it’s really a “wants” based product.

Second, before we say that whole life policies are a total waste, let’s look at term life insurance. Want to know when you get your greatest return from a term policy? Day one, right after you sign the policy. If you die on your way home from signing it, you’ve realized your greatest return. Any day after that, the policy is a pure expense with no way of recapturing those premiums.

Whole life policies can be used as a tool for production. Banks invest heavily in them. They have their own departments (BOLI – Bank Owned Life Insurance). I think we could learn something from the banks.

Our whole life policies are the swiss army knife in our toolbox. One tool that can do many things.

]]> By: Adfecto http://genxfinance.com/one-critical-thing-you-need-to-know-about-life-insurance/comment-page-1/#comment-59520 Adfecto Thu, 21 Feb 2008 22:42:44 +0000 http://genxfinance.com/2008/02/20/one-critical-thing-you-need-to-know-about-life-insurance/#comment-59520 30 year term life insurance with a fixed premium is the only product that you will ever need. Universal and whole life products are a huge waste of money. Period. You buy insurance to protect against a catastrophe such as an untimely death of an income earning family member, NOT to give your children an inheritance when you die after retirement age. Life insurance is also NOT intended to pay for certain expenses such as burial or "invest" for retirement. You should save your premiums and invest instead. 30 year term life insurance with a fixed premium is the only product that you will ever need. Universal and whole life products are a huge waste of money. Period. You buy insurance to protect against a catastrophe such as an untimely death of an income earning family member, NOT to give your children an inheritance when you die after retirement age. Life insurance is also NOT intended to pay for certain expenses such as burial or “invest” for retirement. You should save your premiums and invest instead.

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