The Truth about life insurance
Myth: Cash value life insurance is a great investment for the masses. Truth: Cash value life insurance has a very poor rate of return historically and an investor would most likely be better served in mutual funds or other investments.
Don’t let a life insurance agent try to tell you otherwise. Cash Value Life Insurance policies for the most part have returns that can be beaten by mutual funds. Again, for the average investor, cash value life insurance should be looked at more like a savings plan than an investment.
So to summarize…
If you are not in a high tax bracket or subject to the estate tax – buy term and invest the difference. The mantra of financial advisors like Suze Orman and David Bach who preach to the average investor is “Buy Term and invest the difference”. Term is the right tool for this job. The suggested death benefit for most is 10-15 times income depending on age for working individuals, and 5 -10 times income for a non working spouse.
If you need term life head on over to
http://www.quicklifecenter.com/termratequote/ they have great rates and very quick underwriting with accurate quotes.
Uncategorized | dkitchell June 19, 2009
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