More Celebrities and Life Insurance
As we discussed earlier, the lifestyles of different celebrities and high-earning professionals can have a big say in how their life insurance shopping experience should go. And their high-profile status certainly does not exempt them from needing such coverage in the first place – quite the opposite in fact, given the amount of money and assets these individuals are likely to have.
But inherent in that statement are other, larger questions. How do the individual achievements and over-arching trends of high earning celebrity affect not only the all-star community, but the nation as a whole? Below are several items that tackle these weighty subjects.
How should a high-earning professional handle searching for life insurance?
Celebrities and Life Insurance
Several months ago, we detailed the specific life insurance needs of different celebrities. And throughout our time, we have explored how life insurance questions arise easily from different entertainment news items.
First, we would like to help you understand the different types of people who need life insurance by revisiting several of these posts. They give detailed information about how life insurance would protect the families of each high-profile entertainment personality. The details of each of their lives dictate their levels of need, as well as the kind of life insurance (and other insurance) products they should investigate as part of their financial planning strategy.
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Later on, we will revisit several insightful articles about both the overarching trends and isolated incidents that could potentially affect one’s life insurance and financial planning views and needs.
How can I find the truth?
As you can see, the din of misinformation can easily drown out logical, reasonable arguments about life insurance (as it can for all things). The Internet has simultaneously made it easier to find information, and easier to be misinformed by so-called experts in the field.
The most important thing to keep in mind in terms of finding the truth may seem like common sense – it’s trust. You need to trust your source. If you’ve found the information that has you reconsidering your personal finance planning on a blog written by a person you’ve never heard of, never met and know nothing about, it would be worthwhile to at least investigate a second opinion.
But what you truly need most is a trusted opinion of someone who knows your specific financial goals, needs and roadblocks. Talk with a recommended financial planner or life insurance agent that will go through the specifics of what you should do given your individual situation.
It is great to conduct research online – an educated consumer tends to be a happier consumer, after all. But take these generalized bits of information and advice with a grain of salt, and keep in mind first and foremost what your needs and wants are.
Dave Ramsey and Life Insurance
The name Dave Ramsey is practically synonymous with the concept of personal finance expertise. But while he has built himself something of a one-man empire, and his views on credit management are spot on, his perspectives on life insurance are extremely misguided. And considering how many people follow his advice, we felt it was our responsibility to refute his claims with a detailed breakdown of his inaccurate arguments.
Below are links to the entire five-part series, as well as descriptions of each chapter of our rebuttals.
The Truth About Dave Ramsey – My Response to Dave Ramsey’s Article “The Truth About Life Insurance,” Part 1
(In which we explain Ramsey’s assertions and start to explain why he is wrong)
The Truth About Dave Ramsey – My Response to Dave Ramsey’s Article “The Truth About Life Insurance,” Part 2
(In which we start to explain why term life insurance, while a fine product on its own, is inferior still to whole life insurance)
The Truth About Dave Ramsey – My Response to Dave Ramsey’s Article “The Truth About Life Insurance,” Part 3
(In which we point out the unrealistic nature of the rationale behind Ramsey’s support of term life insurance)
The Truth About Dave Ramsey – My Response to Dave Ramsey’s Article “The Truth About Life Insurance,” Part 4
(In which we point out the issues that arise when a term life policy expires, as it will for 99% of term policy owners)
The Truth About Dave Ramsey – My Response to Dave Ramsey’s Article “The Truth About Life Insurance,” Part 5
(In which we conclude and summarize our arguments about the merits of whole life insurance, compared to term life)
Jean Chatzky and Life Insurance
Jean Chatzky, who holds high-end managerial positions for the “Today” show and Money magazine, is another well respected financial expert who offers millions of readers and viewers a font of knowledge through various channels, including a Web site, blog, and answering questions from fans the world over.
In one of her written responses to an inquiring mind, she addressed her views on life insurance. A lot of her rationale is fair – take the time to crunch the numbers and figure out how much life insurance you truly need and the purposes it will serve, shop around (rather than going through one company), and know the ratings of the companies you’re considering. We completely agree with all of these assertions.
There are two comments she made in this response, however, that needs to be addressed. The first is the generalization that most single people do not need life insurance. Her wording allows for exceptions, but we feel the matter cannot be cast aside as such. Many single people contribute financially to families, businesses and charities – institutions who, without them, would be in trouble. Life insurance would be a good option for any of those kinds of people.
But she also writes off whole life insurance, and other more complex forms of life insurance, in favor of the “ease” of term life insurance. As we’ve stated before, term life insurance may be easier to acquire, considering it is a plain death-benefit-only policy. But complications enter into the equation as soon as you either outlive your policy, or need to change your policy. Since so many will inevitably outlive their policies, these questions will come into play later, and at a higher cost in regards to premiums than you would pay if you kept a consistent, guaranteed premium permanent life insurance policy.
Chatzky recommends taking the time to research life insurance, and she is correct – but you should take the time to look into all of your options, before writing any of them off.
Suze Orman and Life Insurance
Suze Orman is one of the most well-known, widely respected and dynamic financial planning experts in the nation. Through television and radio shows, as well as online, she has been giving advice and guidance to an audience of millions for several years.
One of the financial planning topics she’s not shy to discuss is life insurance. And on her site, she very clearly lists her views on this product. To directly quote her words, she says…
“I hate whole life insurance. I hate universal life insurance. I hate variable life insurance. The only type I like – for the purposes of insuring your life – is term insurance! If you are smart with the money you have today and you get rid of your mortgages, car loans and credit card debt and put money into retirement plans you don’t need insurance 30 years from now to protect your family when you die.”
Let’s cut right to the chase – we couldn’t possibly disagree more. There are several points to Orman’s logic that either don’t make sense, or don’t factor in the reality and unpredictable nature of life.
It’s impractical to malign people who have endured – or are presently enduring – hard times due to factors beyond their control. Simply put, people are struggling, and bills are not always so easy to pay. And her plan doesn’t allow for the fact that one could pass away at any time, leaving behind debts that others will have to take care of, and savings goals that could be severely compromised.
In an ideal world, yes, we would all be able to handle our debts while we are young, so that when we are older, we can buy a term life insurance policy that lasts exactly as long as we need it to last. And also, in an ideal world, we would all be able to predict how long we will live. Unfortunately, we do not live in such a world. There are too many variables for such a thing to be left to chance.
Whereas you will likely outlive your term life insurance policy (effectively spending years of hard-earned wages on life insurance premiums for nothing), your whole life insurance policy will always be there for you.
What are the experts saying about life insurance?
For those who follow finance news at all, there are some big names that tend to be referenced often for their expertise and opinions. But what do some of these people have to say about life insurance? And are they giving out the wrong kind of advice?
We respect many of the names that are out there in the financial news world. They obtained their status for a reason – they know what they are talking about. However, when it comes to life insurance, we find that even some of the most educated and enlightened financial minds are unsure of the nuances of this very important financial planning tool.
We have found quotes about life insurance from some of the biggest names, such as Suze Orman and Dave Ramsey, and have examined the good points – and bad – that they have made. Keep reading this week to learn more about life insurance – perhaps even more than the experts do!
Friday Poll: How would your life insurance policy help you most?
When you stop to think about it, life insurance can help you in so many different ways. It can offer security, wealth accumulation, protection, and other wonderful benefits to both the policy owner and his or her loved ones and dependents.
Each person looking for life insurance, though, is motivated by different goals. Perhaps they are getting on in their years and want to make sure their family is taken care of after they are gone. Or they may be just starting a family, but want to make sure their child is protected, while also having a way to save tax-deferred money for the child’s college education. Whatever the motivation, life insurance as a financial planning tool that is gaining notoriety as a necessary part of one’s overall fiscal picture.
So we ask you – what is your main interest in having a life insurance policy? How do you think having life insurance would benefit you most?
Recapping the Benefits of Life Insurance
We have talked a great deal this week about the many ways in which you can use your life insurance policy to make a considerable financial burden easier.
We talked about using the death benefit paid from a life insurance company to defray funeral costs, handle any outstanding debt incurred by the deceased, and most important of all, using life insurance to handle the costs that will allow a family to carry on living in the style to which they are accustomed. And the best part is that these elements are only the tip of the iceberg of what life insurance can do for someone. There are even ways to benefit from your own life insurance policy, if you have a permanent life insurance policy with a savings component built in.
Life insurance is exactly what it sounds like – it is coverage of a life. But it covers more than just the life of the policy holder financially. It also covers the lives of his loved ones and dependents by essentially paying for their continued well-being. Life insurance is a purchase that tells others that, no matter what happens, you want to make sure your family is secure.
Give your family life and security for years to come – call BeamaLife today, toll-free, at (877) 972-3262 for more information on best life insurance.
Life Insurance Benefits and Outstanding Debt
When someone passes away, their debt does not necessarily die with them. Regardless of the circumstances, if an institution is owed money, it cannot automatically be forgiven when the person in their debt dies. If companies were to do this every time, they would be bankrupt – and fast.
So when a person dies with debt still lingering, the debt is simply inherited by the deceased person’s family. And in a time when a family is dealing with not only a loss of the person they love and care for so dearly, but also their financial support, additional debts are the last thing they want to be worried about. This is another way in which life insurance can help you.
The death benefit paid by a life insurance policy, as long as the beneficiary named is someone who can use the assets toward such a cost – and can be trusted to do so – can significantly ease the burden of inherited debt. Be sure to talk with a trusted financial advisor about the best way to reconcile any debt, so that your funds are used in the way that is most advantageous to you.
