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Recently just had our 1st child: Next up, Life insurance! Help please!
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Bill Moyer
Posted 2/3/2014 14:34 (#3659495 - in reply to #3659131)
Subject: RE: Decreasing term life insurance



Coldwater, Michigan		If you understand life insurance, it is at it's core "Decreasing Term Life Insurance". Then some companies attach a savings feature to their policies. If you die, they pay the decreasing term + any savings the policy has built. That is what we know as "Whole Life Insurance". "Universal Life Insurance" is just Whole life with some fancy twists to appear different, and they have a different way of showing possible payout of the "Savings" portion. Universal Life was supposed to be "Paid Up" so much quicker than Whole Life would be paid up.

A lot of those Universal life policies I looked at as an Insurance Agent 30 years ago (Took a 2 year vacation from Agriculture) when they were brand new, became paid up in the boom years of the stock market, and crashed when the market went south. Then the policy holder needed to pony up big time to make up the difference.

Buy Term invest the Difference!

Buy insurance to protect for disaster, not savings.

Buy enough to replace your income if you were to die, for a period of time so your family could get back on their feet. That might mean college Ed for children, A college Degree for wife, Paying off some debts (maybe not all). Also, most term policies allow Children's rider for very little additional premium, convertible to about 5 times whatever rider amount is for. Conversion usually means Whole Life. Buy the rider to help bury them if the need arises, then if they are un-insurable let the thing convert to Whole Life. If they are insurable and need insurance at their 21 years old, then term insurance will be unbelievably Cheap for many years to come.

Level Term Insurance is just the leveling of the premium for blocks of time from "Decreasing Term Insurance.

As your assets build you might not need as much Insurance because you have yourself become at least somewhat "Self Insured". Which is all the Whole Life Insurance is doing is self insuring itself from your extra premium.

I'm going to get myself in trouble if I go any further!











Edited by Bill Moyer 2/3/2014 14:43
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