Friday, October 23, 2015

Life Insurance Calculator Helps You Figure Out How Much Insurance You Need

This calculator makes life insurance a lot easier to figure out.  

This is a great discussion between two knowledgeable experts with different opinions on the value of whole life vs term life.  Dave Ramsey is on record many times as saying it is stupid to buy whole life and to only buy term life because term is 1/20th  the cost of whole life, but the caller Russ is 100% correct that each situation is different, and the job of the insurance agent isn't to sell a product that is in the insurance agent's best interest, but in the client's best interest as a fiduciary.  Dave has no fiduciary responsibility toward anyone with the advice he offers.  And while it is simpler to let money grow in a mutual fund, IRA or other growth asset, it is not without risks of loss which Dave minimizes over and over again as insignificant.  Dave is not alone, Suze Orman also says the same thing in public (that the market always returns positive returns over the long term and just buy term insurance and invest in mutual funds).  It all boils down to your comfort level and understanding of these product offerings.  I like Dave Ramsey's advice on financial peace and eliminating debt aggressively.  However his statements that the only reason cash value insurance is in existence is because agents get higher commissions to sell these product is flat out wrong as the caller points out.  It is illegal for insurance agents to sell products that are not suitable to their customers, and industry regulations and standards are very clear about that.  Dave knows better or should know better.

Tuesday, October 20, 2015

Where does insurance fit in your wealth building plan?

Wealth managers and smart marketers trying to educate the public on investment products do a great job educating their clients on building wealth and eliminating debt as quickly as possible.  I agree with almost everything said about eliminating debt  and wealth building through managed funds, but in a balanced position.   I see the risk vs reward for some people best balanced with insurance products that provide guaranteed protections for wealth with index universal life and increasing death benefits as illustrated in this video as a great explanation of index universal life insurance.