Taking this question directly to my clients, the following phrases have been used: “Peace of mind. –Tax-free growth of an investment with protection from a downturn in the market. — Potential tax-free withdrawals. –My family knows I care. –Gives me a sense of responsibility. –A side savings account that functions similar to a Roth IRA…but without income limits. –Estate planning. –Possible Long Term Care coverage, should I need it. –Retirement income that I control. –It will pay for a wedding for my daughter in 20-years. –Having it allows me to sleep at night. –My policy functions like an IRS tax savings loop hole.”
Yes, all these statements have been made by various clients over the years, and I have to agree with them all. How is this possible? What are they talking about? Isn’t life insurance just “death insurance” that comes with a nasty monthly premium?
The fundamentals of life insurance haven’t changed in more than 2,000 years. However, the designs of certain new policies are light years beyond the primitive Whole Life policies of yesterday, and many people now utilize their extreme flexibility as a major tool in their financial plans. I know there are many believers in the infamous six-word phrase, “Buy term, and invest the rest.” This concept may work for some, but it doesn’t always work to the advantage of everyone.
If you’ve become overwhelmingly confused on the overall subject of life insurance (UL, VUL, EIUL, WL, ROP, etc.), call me to set up a time for an educational moment you won’t forget! I will arm you with all the information you need to help ‘us’ decide what is best for ‘you.’ It may be a term policy; it may be a permanent policy—and both have their respective places in financial plans. But if you don’t thoroughly review all of your options, you may kick yourself based on the short sighted decisions you made today—for the effects they have on the rest of you and your family’s life.