Term Vs. Whole Life Insurance (Life Insurance Explained)
Get Term Life Insurance HERE:
In this video I will breakdown Term Life Insurance vs. Whole Life Insurance, to give you an idea of which is best for you.
Life insurance is one of those necessary things in life, because life happens! It's better to have life insurance and not need it, than need it and not have it.
The fact is, we all eventually need life insurance and this video will hopefully help you decide which is best for you.
Term life insurance provides coverage for a specific amount of time (usually 20-30 yrs). If you or your spouse passes away during this time, your beneficiaries will receive a payout from the policy.
Term life is much more affordable than whole life. Typically this works out to be $7 per month in 20 yr term, vs $100 with whole life cash value.
Term life has no cash value until the death occurs, so it’s not worth anything until you need it, which is fine.
Whole life is a form of permanent life insurance with 3 components:
1. Premiums
2. Death Benefits
3. Cash Value Accumulation (savings aspect)
When you pay your premium a portion is applied to the death benefit and cash value.
The first 5-10 years a majority is applied to the death benefits (cost of insurance) along with fees and commissions.
After this, the cash value will receive a great portion of the premium
Beneficiaries are only entitled to receive the death benefit portion of the policy when you die!!
You have no choice in how the life insurance company applies the premium you pay.
You can cash in or surrender your policy at any time to get your money out, but you lose the insurance!
Get Term Life Insurance HERE:
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Many people make the mistake of not taking out enough of a policy to replace their income !
Chris Invests – Personal Finance Videos I didn’t know that. I learned that today. I only have 250k and my husband earns 150 a year so it’s not much I guess in comparison.
@@mizzmuhree9297 Also take into consideration your investments. If he has a substantial nest egg it might not be necessary.
MAN, glad when you said “sponsored video” you didn’t follow it up with a life insurance company pitch 😂
Do your thing man, make that ad revenue money!!
He literally put a pinned comment to buy Term Life Insurance 🤣
The most important take away from this video is to be careful when crossing the street.
Dude i crashed my bike really bad the DAY after I made this video. Be careful what you put out in the universe
@@WhiteBoardFinance Wow, that’s not good. Are you OK?
@@WhiteBoardFinance 😱😱😱
And never buy a whole life policy!
Remember: you cannot eliminate the risk, you can only reduce it.
Whole life agents disliking and commenting on how bad whole life was presented here
thats one of their duties as agents. Might do the same if i am one.
I sell big Whole Life policies to a small segment of the economy. It’s a very niche product which adds huge value to people who use it properly. If purchased under false pretenses -or- if used inappropriately, it can easily be a terrible waste of money. It depends on how it’s positioned. Transparently: there isn’t any vehicle in the US tax code that is efficient for everything. Otherwise, everyone would only use that hypothetical vehicle. Does my rationale make sense?
Because it is. It is one thing to misunderstand a product. It is anonther to spread that misinformation as if you are an authority on the issue.
Not everyone needs whole life
So if you have a nest egg and you are decent at investing life insurance is a scam 🤔
I love how you’re geeking out during this video. It’s all a bit savage
From where I’m from our whole life plans are limited pay (which means you pay for a limited number of years 10,15,20) and still get covered for life compared to a term in which yes you do choose your term (10,20 years) however it doesn’t cover u for life. In which is akin to renting a house vs buying a house. Now worse case scenario is when ur term plans comes to end (your renewal obviously sky rockets ) and the very worst..is you don’t renew and something happens..
So i always believe its best to have both to complement each other …my humble opinion that is. Cheers
So where are you from that this makes sense to you?
What a horrible example you gave. Whole Life cost at least 20 times more in premiums than term. Plus, when you die, the insurance company KEEPS the cash value that you’ve been paying in all these years and only pays the death benefit. Sorry, scammer. Try again.
You are better off financially getting term life for 30 years until about your expected retirement age. Invest the rest (difference in what you would have paid for whole) and by the time the term life expires, you will be “self insured” and will no longer need life insurance.
Probably smart to get Term life when you hit 40-45 and get a 35 year .. if that’s in the 20–40 dollar range it’s worth every penny.. and now eat whatever you want if you make it past 80 god bless 😂 but then I would also look into a cheap whole life to at least leave something behind
😂😂😂@@FuegoBravo1
A coworker sells insurance as his side hustle. He likes to talk a good game. After watching your video I am more informed. THANK YOU!
Exactly.
I’m intrigued about your coworker because I’m about to be on the same boat (Selling policies as a side hustle). How’s everything looking for him?
I’m 35 and just recently told my husband (41) to look into ins. After watching this my mind is Blown!!! Thank you for posting this!!!
I sell 100% term and we have 35 level term and insurable age to 95!! Let me know . Let’s run some quotes !! GODBLESS you all
My husband and I are closing on a home soon and we’ll definitely check out the simply safe recommendation. Thanks
Thank you so much! I’ve listened to a few videos on this topic and I was starting to think am dumb for not understanding but after your video, it all became clear. Am subscribed!
*Get Term Life Insurance HERE:* https://whiteboardfinance.com/go/havenlife
I am 27 and paying 132 dollars a month for a 100,000 policy I feel like I am being ripped off. Am I?
@@shayl0tus hard to say, it’s different every where you go. Nothing simple about the insurance game. You have to do your due diligence and get quotes, figure out what debt you have that will be left to family, figure out the cost of living month to month for your family after you pass away figure out cost for schooling for your childs education like colleges how much that would be for a 4 year thing figure how much it’ll costs to bury or burn you figure the cost of the get together with food services things like that, figure out your monthly spending habits as a whole family with you included and take an average from the year and then make sure when you die that can be replaced. My situation I am the sole provider I need to make sure my wife and children are set
@@ML-ks2lj such a big help!
Thanks!
@@shayl0tus the rating is based on your lifestyle, medical history or what kind of life insurance you have and for how long you are paying for. I teach all kinds.
How do you feel about endowments policies?
570 dislike came from whole life insurance agents lol
Nope. The dislikes came from ppl who actually understands how this works and knows his information is incorrect.
Lol 😂
@@abcdefghijk2073 You can actually withdraw the cas savings before you die and still keep the policy.
Buy term and invest
I’m glad my father had life insurance. He died in 1965, and because of it my mother had enough to live on until she died in 2009, when she was 94
Wow that is amazing, I bet you have a good policy with great benefits and death benefit 👍🏼
what kind of policy?
@@randalleofficial can I get a referral what company?
can I get a referral what company ?
@@theresaquickster4214i give free quotes!
Thank you so much. I was about to take whole life insurance, as an investment vehicle. After this video, I have second thoughts.
I took a class for life insurance to be primerica agent. Class was so fast and I couldn’t catch all so search for it and found you. Thank you for making it clear in 10 mins.
Primerica is a scam
Thank you so much for your videos, I failed my LifeInsurance test so many times but once I sow your videos I passed. Thank you for your help.
Yo… this is the first commercial/sponsored ad from a YouTuber that I actually literally enjoyed.
I went with 35years term with living benefits at 38$ a month & 20$ a month for 200k Accidental D&D. I’m turning 27 and I got it when I was 25. The way I look at it is JUST IN CASE since I have a daughter and son to worry about.
What company? I’m looking to sign up for one
Company?
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