Good to Great (Actually Worst) Advice!
Posted by: BeamaLife Editor on 15 Sep, 2009
Too often, you have been advised to buy term insurance and invest the difference in the stock market for better return instead of whole life insurance. Even though this sounds convincing on paper, it lacks verifiable facts, ignores feasibility of continue investing in stock market and demonstrate ignorance of life insurance tax advantage. When you calculate long term compounding tax burden of taxable investment, consider the lack of discipline to save regularly and the opportunity cost of term insurance premiums; it is very difficult for this advice (buy the term insurance and invest the difference in stock market) to succeed.
Please let me know if you think otherwise and can prove your opinion with verifiable facts.
Life Insurance is an Asset!
Posted by: BeamaLife Editor on 8 Sep, 2009
Most of the time we view life insurance as an expense - especially the term insurance but the greatest strength of life insurance is the ability to pay a specified amount on the death of an insured. For what can be a relatively small amount of money each year, your beneficiaries (your family and loved ones) can receive a large death benefit. Depending on how soon or how far out in the future that death benefit is received, the dollar paid toward life insurance have the potential for you and your family and loved ones to receive a tremendous risk shift to life insurance company.
You might think of life insurance only as a way to provide for a surviving family after the death of a breadwinner. But, wealthy families are increasingly using whole life insurance as an “asset” to create wealth for their beneficiaries. By taking a portion of your assets each year to cover the cost of life insurance premiums, you are able to potentially transfer your wealth and would able to create additional wealth.
Please let me know what you think. Do you own life insurance? What kind?
