Term Life Insurance – Why EVERYONE Under 50 Needs It
Universal Life Insurance is NOT the same as Whole Life Insurance, please be advised.
Two completely different things. In my experience, very few Universal Life (UL) policies work as sold. I’ve seen many about to lapse to unsuspecting owners, always at the most inopportune time.
This doesn’t happen with Whole Life.
If you have a Universal Lfe policy, PLEASE, get an INFORCE ILLUSTRATION. This is how you analyze the strength of the policy going forward.
The annual statement you receive does NOT do this. It only gives you a brief review of what happened in the previous 12 months. We need to see what the projections are going forward.
Get the InForce Illustration every few years. Please. I’m begging you.
Term life insurance OUTSIDE OF YOUR EMPLOYER is so important. I’m going to share with you why you need some.
I’ll also share with you my near disaster when I left my job with no life insurance.
Thankfully, it worked out, but man, it made me nervous. Don’t let that happen to you!
$500k 30 Year Term Life Insurance
Here’s a strategy for those in their 20s, even if you’re not married. Go get a $500k 30 year term policy. That sucker won’t cost you much at all, especially if you’re in good health. Then you don’t EVER let it expire. That’s what I foolishly did. And it nearly cost m family dearly.
Once you have that policy locked in, you don’t have to worry about life insurance ever again. Well, unless you have more than $500k of debt.
If you are in your 30s and just starting out. You may think you don’t need much life insurance either. After all, you’re young right??? WRONG!
Get a Private Term Life Insurance Policy
Get a 20 or 30 year term life policy, again for $500k to have that locked in too. DO NOT rely on your employer.
Do you know how employer life insurance works? First AD&D is not true life insurance. Whatever AD&D you have, simply disregard.
You are underwritten through your employer as standard rate, which is similar to if you smoke. Thus if you are in good health you are paying much more than you would for a policy you get on your own.
Secondly, if your employer drops your salary for whatever reason and your insurance is say 5 times salary, guess what happened to your insurance? It drops too!
Employer Life Insurance May Be Portable But It Isn’t Cheap
Lastly, if you get laid off, you can take your insurance with you but it’s crazy expensive. Too expensive for most people who just got laid off to afford.
Avoid all this by simply going and getting your own policy when you’re young and in good health. And get MORE than you think you need. It’s too cheap not too. Just do it!