Episode #11: Good Or Bad – Term Versus Permanent Life Insurance

Today’s Prep:

We begin our series on the benefits and drawbacks of various financial strategies. Join us as we begin by comparing term and permanent life insurance.

(Click the featured times below to jump forward in the episode)

Equipping Points:

[00:40] – What Do We Need To Know About Term And Permanent Life Insurance?

  • Whether to purchase term or permanent life insurance is a popular debate, and we want to start by defining the terms. Term life insurance is not unlike car insurance in that if you don’t use it, you’re not going to get it. Permanent life insurance is a system in which you pay into your policy until you die, and then the benefit really passes to your heirs and loved ones.

[3:36] – Term Life Insurance Is Good For Young Families.  

  • Term life insurance is cheap, and it’s a great safety net for young families..

[4:20] -David Shares The Story Of A Couple Who Took Advantage Of Term Life Insurance. 

  • We worked with a couple with young kids. The wife had term life insurance, but the husband did not. David outlines why it was important both spouses purchase term life insurance.

[6:15] – What Type Of Term Life Insurance Should You Purchase?  

  • We typically recommend policies that are level pay. This means these policies have premiums that stay the same through the years. The company can’t cancel your policy or up your premium throughout the duration of that policy’s lifespan.

[8:52] – David Offers An Overview Of Permanent Life Insurance. 

  • Permanent life insurance comes with both a death benefit and investment component. David shares the story of three clients who used permanent life insurance to their advantage.

Today’s Takeaway:

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The host: David Dickens

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