You may be like a lot of people who are completely done relying solely on others for banking, finances, management and insurance advice. You are ready to become 100% responsible for your life, your money, and your banking. You are ready to learn, to be coachable, and to take ownership.
According to Business Insider, and several leading money experts agree that have impacted millions to transform their money, term life insurance is the best by far.
In today’s life and insurance world, it is easy to get lost in the complexity, chaos, and noise. Let’s simplify what is permanent life insurance, what is term life insurance, and why you need term insurance.
Let’s breakdown the differences between what is Permanent Insurance and what is Term Insurance so you understand it first.
Permanent Life Insurance
Permanent or Whole Life insurance is designed for your whole life with a cash value and coverage after you pass away. It may offer tax benefits and security factors for you to consider. The addition of the cash value does not come cheap.
As a result, the premiums will cost you more to have this add on. If you focus on the intent or purpose of life insurance, it becomes simple, to replace your income when you die.
Instead of increasing your premiums for whole life or a permanent insurance policy, you could invest that money in stocks, mutual funds, or a money management account and watch it compound yourself. Imagine the impacts on your peace of mind, and on your finances. You could also have easier access. Depending on numerous factors, the premiums may range $80+ monthly.
Term Insurance
Term insurance is designed for a part of your life. This could be 20 or 30 years depending on your personal situation. If you reach the end of the term, you may always get another policy. Term Insurance keeps it simple. It replaces your income for your family and loved ones when you die. Depending on several factors, this could range as low as $7 monthly.
So, you may see why you want to get Term Insurance.
1. It covers you when you die.
2. It costs less.
3. It gives you options.
Let’s use the same numbers above. Let’s say you are 30 years old, and your term insurance is $7 monthly and you take that $73 monthly and invest it like the banker and money manager you are in a 10% growth rate account.
Are you curious what the result would be? So, glad you asked. The answer $310,000 dollars and your original term life policy insurance for when you die. How do you feel? Like a winner.
You are ready to be your own banker and join the world of infinite banking.
Permanent vs Term Life Insurance: Which Do I Need?
When it comes to purchasing permanent life insurance or term life insurance, by now you would agree to go with going with Term insurance. What you need is Term Life Insurance. For more insight on finance tools and other educational topics, visit our blog.