The Best and Worst Types of Life Insurance!

The Best and Worst Types of Life Insurance! Jump start your journey with our FREE financial resources: Reach your goals faster with our products: Subscribe on YouTube for early access and go beyond the podcast: Connect with us on social media for more content: Take the relationship to the next level and become a client: Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

31 thoughts on “The Best and Worst Types of Life Insurance!”

  1. “Life insurance has a lot of fees and makes a lot of money for the sales person. Avoid fees. We make no money off life insurance.” (Not stated —> we make 1.25% AUM off your money no matter what we do EVERY. SINGLE. YEAR. in perpetuity/FOREVER. Why is this not stated/addressed since it’s somewhat contradictory and just another form of “fees”?

    1. NWM T80 is good, however not the cheapest out there if that’s your worry.

      You also have to remember that you’re paying a slightly higher premium to go with a AAA rated company not mom and pop and also have a rep who is more relationship and planning focus then transactional. Not swaying you either way.

  2. As a former life insurance agency owner I 100% agree that term life insurance is most appropriate for 99% of clients and investments should be done seperate. Insurance companies spend billions of dollars running the numbers and hiring actuaries to make sure the numbers are skewed in their favor even on products such as IULs.

  3. Talk about timing!! I was literally, just this moment, starting to reach out to get some additional life insurance quotes. On a lark I thought I’d hit you guys up first to see if you had any content about the best/worst choices! Seriously…remarkable timing! Thanks, fellas!

  4. It’s funny, whenever videos mentioning insurance are released, you can see the insurance salesmen climb out of the woodwork in the comments. Drinking game, take a drink every time you see a profile with a full name and corporate style face pic say something along the lines of “Insurance product X with a proper structure can be a powerful part of your financial life”.

    1. @Maliq Matthew These guys have received MORE training than most insurance sales people, deal with insurance on a daily basis, and one of them is a former insurance salesman. That certainly doesn’t make them immune to making mistakes, but I think claiming they don’t know what they’re talking about is kind of ridiculous. And my point wasn’t that experts weighing in is a bad thing, it’s that commission-based salesman weighing in about how product THEY are selling is exempt from the criticism is awfully convenient. In the realm of experts, there’s a term for that; “conflict of interest”.

    2. @Alan Their training was not in how dividend paying life insurance policies from top mutual insurers work, historical rate of performance, and uses, thus claiming they dont know what they are talking about regarding this is not ridiculous. Saying how “insurance companies control your behavior” as if 401K, Roth, or any long term investing instruments don’t is ridiculous.These policies are, when designed properly, to function as fixed income replacement due to the liquidity and comparative rate of return with tax advantage; for retirement they are for stock market volatility buffer and then to act as emergency fund/”buy the dip” fund pre retirement. They arguably don’t know how soon they can be liquid, historical rate of return, or policy loan feature. AUM fee advisors have just as much conflict of interest since if $100k of the money that would otherwise be in AUM account with them goes instead to dividend paying life insurance, that’s money that comes out of their pockets.

  5. It’s amazing how people don’t understand why trying to use insurance for investing is silly. Why don’t I buy “whole auto” or “whole homeowners”? Because I just want it to cover acts of god and there’s nothing emotional about covering my car and home.

  6. Unfortunately the comparison for permanent policies have been compared with the wrong benchmark again. For a balanced portfolio where the investment arm is well fueled, permanent LI should be compared with the fixed income investment bucket. The number of tax benefits for the permanent products was skipped over. For most folks out there, term LI makes most sense, but often people miss out on the benefits of permanent LI due to a lack of understanding and a focus on the fees. A huge miss.

  7. One other often overlooked factor that can lower your life insurance need is the Social Security survivor benefit for minor children. If you pay into Social Security and die when you still have minor children, your children are likely eligible for monthly ongoing payments, a portion of your Social Security benefit, until around when they turn 18 or graduate from high school. Something else to look into to make sure you’re not paying for more life insurance than you need to…

  8. Lol, top mutual insurers have been providing ror of around 4.5% tax free even when the interest rate was near zero for over 15 years. There is a lag in following the interest rate because not all of their money is getting the new rate but it should go up in coming years as it has done historically. It’s not meant to compared to equities, its meant to compared to fixed asset portion, or is everyone suppose to put all their money except weekly grocery bills into the stock market?

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