How Much Are You Worth??? | What Insurance Companies Don't Want You To Know
Do new parents think about life insurance?
Buckle up that new car seat you just purchased and let me share with you some fun facts about Whole Life and Term Insurance!
Before you purchase any type of life insurance, please consult with a family member, financial professional, or someone that you trust! Purchasing insurance is an “emotional sell” because someone selling insurance is going to tell you a story or try to tell you a story about how not having insurance can place a hardship on your family.
This can be true…but make sure that you are aware of what your options are!
What are my odds?
The reason why Insurance companies are able to sell insurance is because of Actuaries. Actuaries have crunched the numbers to determine the chances of someone passing away at different ages.
The chances of you passing away by the time you are 42-43 are just above 0.2%! This is not something your insurance agent will tell you because they only make money after completing a sale.
This is an important reason why you need to have a trusted advisor, family member, or friend to help guide you in making smart decisions with your money.
Unless your estate is going to be over $11,180,000 (2018) …then whole life is most likely not the best insurance product for you. The reason why is if you have a large estate, the insurance pay-out avoids estate taxes. And remember…this money is paid out to your family if something happens to you.
Don’t get caught up in paying for something your entire life, without knowing why you should be purchasing it in the first place.
Insurance salesman get a larger commission on whole-life insurance because you are paying for it your entire life! This means more money to the insurance company, the insurance salesman, and this is money will be going to your loved ones.
This saying is in regards to figuring out how much Whole-Life Insurance costs, subtracting it from what your Term-Insurance costs, and investing the difference.
Basically, you are covering your family in case a tragic event occurs while your family is blossoming, you are building up cash in an account, and hopefully, are seeing the rewards.
Congrats! You now have a basic understanding of Term & Whole Life Insurance! If you have any questions, feel free to drop us a line directly!
Joshua Krafchick, CRPC©, EA