08/12/2023
For years, the most popular strategy for purchasing life insurance has been to "Buy Term and Invest the Difference"! I still believe in this very solid approach. But it is NOT a full proof method for all families or situations. Please read on......
Most folks that I know from 20-30 years ago, who used this method, did not invest the difference! Let me share an example of how this may playout, financially speaking, for a family who did not save while paying for Term Life Insurance.
Frank and Sally purchased a 30-year term policy. $300,000.00 of peace of mind. Life happened during that period. Sally got hurt in a car accident and had medical expenses that insurance did not cover about 20% of the total amount. Around that same time, their oldest child was given a 50% scholarship to go to college but needed more funds to attend. Add that to vacations, broken cars, and a new patio cover, and the savings account ran dry. The next negative financial need would now require them to dip into the one savings they should have never touched: THEIR RETIREMENT FUNDS.
Over the years, Frank and Sally repeated this scenario. Then, the final nail that seals their future retirement lifestyle, occurs. Frank is diagnosed with a critical illness. It is manageable but could be fatal under certain circumstances. But now, he can no longer qualify for life insurance. Ever! When his term policy runs out in two years, that financial security is gone forever. Savings is low. Retirement is not where it should be. Resources are limited and he may have to go on disability. Quality of life forever altered.
So, just a couple of things. Financial quality of life does not mean someone can't be happy if they didn't meet their goals. That is not the point of this communication. The point is, what do you want?
Term Life Insurance and Invest the Difference:
This is by far the best option for anyone looking for financial peace of mind for your loved ones. It's the cheapest option with the biggest return to safeguard your family. But if you don't use it, you lose it. Young and middle-aged couples should always choose this product if they are disciplined with their finances. But invest the cost difference between what a term policy would cost you verses what a Whole Life policy would be. Whole Life is more expensive. But can you afford it during you early years in life.
There are a many types of Life Insurance products on the market today. And we can talk about them if you'd like. But for the purpose of this communication, the newest product on the market is one that I'm truly excited about. It's called RETURN OF PREMIUM! Yes, you read it correctly. If you buy a 20-year term policy and don't use it, your 20 years of premiums are returned to you! Not too good to be true! It is true. This is a new product. For those what want a product cheaper than Whole Life but don't want to risk the "Discipline" factor because life happens, "RETURN OF PREMIUM" IS NOW A GREAT OPTION FOR YOU.
You can email me for more information about products that meet your needs at [email protected] or call my cell phone at 559-759-1357. We can discuss Term, Return of Premium, Whole Life, Final Expense, Mortgage Life, etc.
Live well and be blessed!
Larry D. Martin
