A lot of people listen to Suzes advice. I recommend great caution on this one. Yes, term insurance can be cheep, but her theory has several wrong statements and assumptions. First, anyone paying $1000/month for a $1M whole life policy needs their head examined. Secondly, if you did save $900/month on the insurance, would you actually save the money and successfully invest it? Its a great thing to say but less than 5% actually save the money. Finally, what will you do about your life insurance need between age 65 and retirement at age 70 (or beyond)? A better idea for this 35 y/o working mom would be a $1M Indexed Universal Life policy. The premium would be 1/2 what this caller (or Ormond staff member) said he was paying. At age 70, the total premium paid would be $215,000. Yes, that is a lot of money, but she must make considerable income to justify a $1M policy, so that isnt out of line. The policy would then pay at least $30,000 to supplement their retirement income for 30 years for a total TAX FREE payout of $750,000 and still have an insurance value of just over $1,700,000. That leaves a lot of wealth for her heirs. Your choices: A. Listen to Suze and spend $36,000 on term insurance for 30 years, then pay just as much for a $10,000 burial policy to cover your cremation B. Use your money wisely by listening to an honorable insurance agent who knows what he/she is talking about. If you pick option A, I hope you faithfully save and wisely invest. Good luck If you pick B, call asset Protectors of Alabama at 256-282-6520.
Posted on: Wed, 24 Sep 2014 13:42:38 +0000
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