Term Vs. Whole Life Insurance | The Best Option For The Sandwich Generation
Term Vs. Whole Life Insurance | The Best Option For The Sandwich Generation
What type of life insurance should the “Sandwich Generation” buy? In this video, I break down the difference between term and whole life insurance. And I’ll show you how to determine which one is going to work best for your specific situation.
Timecodes
0:00 – Intro
0:45 – Why Do You Need Life Insurance?
1:44 – Where to Start
2:26 – Term vs. Whole Life Insurance
3:41 – Don’t Get Hung Up On The Expiration Date
4:14 – How Much To Get?
4:28 – Make Sure To Shop Around
4:55 – Permanent Life Insurance – Whole Life or Universal Life Insurance
6:12 – Insurance Broker Commission
6:40 – Insurance Shouldn’t Be Investments
7:18 – This Gets Me Real Boiling
7:50 – Sales Pitch #1
8:43 – Sales Pitch #2
9:19 – Sales Pitch #3
10:18 – My Recommendation
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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.
The best explanation I’ve heard yet! Thanks!!!
But the term life is not covered with Long Term Care which is not going to be covered to your regular health insurance.
Term insurance is more expensive than whole life every time.
This guy is telling us what’s good for us, you don’t know Brodie. Everyone is different. This guy is telling us to put our money in the stock market. Is the stock market guaranteed to make you money? Ye or no?
The premium for whole is higher than term, but that does not mean that the actual cost of insurance is higher. The additional premium above cost of insurance goes into the cash value (your own savings account, which my policy now pays 4.5%, and has guaranteed minimum of 4.0%). Also, in some whole life policies, like mine, the cost of insurance is paid by the interest from your cash value (if large enough) so I am paying insurance with tax-free dollars. Not every extra dollar you have should go into the stock market as this video suggests, especially in your later years. While the return is higher, so is the risk. One other way to think about this choice is buying (whole/universal) vs. renting (term) – do you prefer owning your home or renting forever? One other benefit of whole/universal is maintaining insurability. BTW, I am not a life insurance sales person!
Got my subscription 👍👍
This guy has it backwards. Only 1% of term life contracts pay any death benefit. A properly designed whole life/ term contract gives you the best of both worlds. A contract set up as 250k whole life and 750k term would be about $450 per month for a 34 year old. As he gets 10:41 older he can convert more of the term to whole life. He can also put money in his 401k. As he gets older this is a much better solution.
Very good explanation from someone who sold term foe 10 years
Term Life: Buy *only* if you have dependents but can be worth it for peace of mind
Whole Life: A scam (unless you’re super wealthy and want to pass on some of your wealth tax-free
Thank you 🙏🏽
This video is so good and comprehensive, thank you!
Prioritize pulling $$ out of IRA and 401k did I hear you correctly? You pay penalty if you do that before a certain age.
But taking $ from cash value you can do at any age.
This is one of the best videos I’ve seen on this topic! Thanks for taking the time
Basically, get well informed and choose what will work best for you. Also, for those saying that you shouldn’t need life insurance once you reach a certain age are being foolish. Life happens! There are PLENTY of elderly ppl that are going to have to have alternative funeral arrangements because they don’t have any life insurance.
greatly explained
so what if your 24 with no kids and interested in using a whole life policy to grow your wealth? And you also have a term life already set?
good
Most ppl don’t ever invest in the stock market. They’re better off investing into the life insurance to leave something behind.
I appreciate you explaining this. So helpful. You prob just saved me from making a really bad choice. I like that you compare it to other insurances bc that makes so much sense
thank you!
Loved the video. I initially had whole life insurance but eventually switched to term. Currently investing the difference I would’ve paid.
Świetne spojrzenie na ubezpieczenia terminowe. Super!
This covers the missing pieces on LI i wanted to confirm if i made the right decision about our LI policy
I had WL paid for the past 6 months for my husband and I 530$/ months premium, i canceled last month and switched to 30 years term. Will invest the difference so that we won’t need to renew in our 60, 70s
I lost money for sure, but i learned a lesson. Always do your due diligence before taking on any financial decisions
Spot on 💯 this video. Immediately subscribed
I’m 37 yrs old, I have both universal and term insurance(30 yrs). We have a lot of assets, only debt we have is out Mrtg, which would be paid off in 12yrs at an interest rate of 2.87% (maybe sooner). My kids college fund is already paid for, I also have retirements & stocks with EJ, not to mention I also manage some stocks myself… the reason, I ended up getting Universal Life was for the benefit of long-term care. So it depends on everyone’s own situation — I hope I made the right decision bc I took my time and researching…
This topic was very informative 👍🏿👌🏿
appreciate that you explain the difference in such great detail . thank you!
Man I bought 20 yr. term life when I was 38 for both my wife and me for $250 mo. I paid for 20 years and didn’t die…Gladly… but before turning 58 I got a warning that my new cost was jumping to $800 a month just for me, plus $650 for my wife in order to continue. I cancelled and now looking to find insurance to cover future expenses so my kids won’t have to worry. This really explained life insurance.
so if you out live the term but still need insurance in your old age. what else can you do besides paying a high monthly premium?
This is a masterclass! Thank you.
I love common sense!
Well Done !
I think you have answered my question in the video. It’s best to invest in one ( Whole Life Insurance). Thank you.
BUTT TERM LIFE MONTHLY RATE INCREASES ITS NOT SET PRICE. MINES WENT FROM 65.00 TO 94.00 AND PLA NS TO INCREASE
I am unemployed, but receive a small amount of money as allowance from my spouse. I would like to be able to withdraw sometimes from an insurance policy to spend on expenses. Is a good idea to have both Term and Permanent life insurances? Thanks.
but where do you go from there once the term policy is over? is this where you’re counting on savings over the years and other investments like the 401k and such you mentioned?
dont you ideally still want to be covered up until you die so your loved ones dont have to utilize the money you saved to be fun money to pay for the death?
Really honest talk wow now I know what I can get I’m planning to purchase life insurance. Thank you
Good job. Concise, Clear, clean, easy explaination.
is it true that if the policy holder passed away the beneficiary. will only get the death benefit but not the cash value?
Life insurance sucks. Rather invest money in something that pays out.
Great video. Thank you very much for explaining.
Thank you
Thank you for enlightening me on why whole life insurance is not a good option in most cases. Appreciate it 👍🏾
The best for the what generation?
Thank you so much Mr. Kim ,I’m 65years old looking to purchase life insurance ,the way you simplify the best insurance to get it is the best I have listen to for over five years , thank you again and God bless you and your family, take care.
It really depends on how your policy is designed. You showed just the half truth about permanent life insurance. It also depends on the personal situation because if we invest somewhere else other than life insurance, that will be taxed(capital gain) to the next generation to take charge of our investments. The returns you get are not that less, either. Otherwise, this product would have gone from the market if it did not benefit the consumers. So, the main thing is to find out your need first instead of jumping on to any products. Great video though 👏
Well explained! spot on💯quoting Whole Life insurance sales pitch.
thanks for sharing sir
1. Rarely do people keep the discipline to invest the difference. 2. People who advocate against whole life AT ALL costs don’t understand risk transfer and guaranteed (or lack thereof) future insurability. 3. Also “experts” don’t discuss the tax issues. 4. These financial advisors who are experts should be sued by people who have their term run out and still have a need but either their health has changed and/or the term price has skyrocketed. 5. The real answer is a baseline permanent product with term stacked on top of it. But buy a good baseline permanent product when you are young.
It’s interesting to hear this side of the story. Because Dave Ramsey thinks the opposite, that life insurance isn’t worth it.
This guy bad advising insurance. When he say not listen to insurance company about whole life insurance. Agent not there up sell. Agent know more about the product than this fool talking
Hello Tae, what is a good Life Insurance Co to get Term Insurance? Thanks