Life Insurance 101 (WATCH THIS BEFORE YOU BUY)
Life Insurance 101 (WATCH THIS BEFORE YOU BUY)
After getting my own life insurance policy last year, I’ve been blown away by what a cool tax-free, wealth-building loophole it is. They don’t call it “Rich Man’s Roth IRA” for nothing! Financial education, people! That being said, life insurance can be confusing, and there’s a lot of bad products/salespeople out there, so this video I share everything I know about life insurance and how to decide if it’s a fit for you.
***ATTENTION: I have a new Instagram and TikTok handle @itsrosehan ***
That’s my official account, and I will NEVER message you about investment schemes, so please be careful and block & report any scammers posing as me.
TIMESTAMPS
00:01:10 – What is life insurance?
00:06:40 – What’s best for you… Term Life vs. Permanent Life?
00:12:00 – When is the best time to get life insurance?
00:16:25 – How to choose a GOOD life insurance policy
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***š BOOK A FREE CONSULTATION WITH MY TRUSTED INSURANCE AGENT š***
Get an assessment of your financial situation and learn more about how different policies work
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SOME NAMES OF REPUTABLE *MUTUALLY-OWNED* INSURANCE COMPANIES
Northwestern Mutual, National Life, John Hancock, Mutual of Omaha, Minnesota Mutual, Nationwide
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***BOOKS I RECOMMEND š***
I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)
https://amzn.to/2VbJ1Pt
The Little Book of Common Sense Investing (Jack Bogle’s classic advice on index funds)
https://amzn.to/32ewzjj
InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)
https://amzn.to/2SLTYpn
Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)
https://amzn.to/2SKyklt
Rich Dad Poor Dad (#1 selling personal finance book of all time… need I say more?)
https://amzn.to/2SJ6vtx
Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)
https://amzn.to/37N2adc
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***MY FAVORITE MONEY TOOLS š¤***
YNAB (I literally can’t live without this budgeting app, so obsessed)
https://www.youneedabudget.com/?ref=YkZbz4082iUstrX7&utm_source=customer_referral
Wise (like Venmo but for international currencies – I use this app a LOT for my life in Mexico)
https://wise.prf.hn/l/413jE0q
Ledger Nano S (crypto storage hardware wallet, because “Not Your Keys, Not Your Crypto”!):
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DISCLAIMERS & DISCLOSURES ā¤
This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
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https://youtu.be/gdQ357almxQ
Honestly, I still see almost no value to it. Unless you’re extremely lazy and wouldn’t want to manage your money even if your life depends on it.
You can borrow and save on your own without needing insurance companies.
In mutual funds and ETFs you also don’t pay taxes on their dividends and growth until you sell. You could just borrow against your taxed portfolio and possibly get a better result for your money.
So I shouldn’t get one now? Because I have not maxed out tax free accounts
Very interesting! Never knew you could use life insurance as an investment vehicle. Thank you again Rose!
Hi Rose….I have a 17 year old son that I share with my ex husband…I need to get the life insurance ASAP for him …I wanted him to be the beneficiary but from what I understand I have to put in under my parents Because I trust they will give it to him when he turns 18…correct me if I’m wrong please….the term seems to be what I need…I think I don’t have long but nothing has been documented yet by any Dr. Or hospital. English isn’t my first language so I apologize if I am asking questions you already went over…Is there a company that you or anyone can suggest of companies that don’t need a medical exam ? If they don’t need a medical exam , in the event of my death do they have to go over my records? Also, are there any reasons that after my passing the company would not pay it out to my beneficiary? I just want to make sure I do everything right so that there is no problem paying out.
Another question is let’s say I want to get my son 100,000 and 50,000 to my husband ..is there a way to make sure my husband has to give the 100, 000 to my son and that he gets the 50,000? Or is it better to do separate policies for both? Thank you Or anyone that can help me by replying…I just started looking into this and you were the first video I watched so I’m still a bit lost on how it works but from what I gathered I definitely think permanent is not what I need.
Wow! So informative. Thank you! This is the first time Iāve heard such an in depth breakdown of life insurance.
Absolute nonsense analogy of renting or buying vs. term or permanent insurance. Like I lost brain cells listening to it
Great deep dive video. Very clear! Thank you, Rose.
I like many things you said about lofe insurance, but thereās something that needs to be clarified: the insurance company does NOT invest your cash value in the stock market in an IUL.
They use the earnings from their General Account Portfolio to buy options in the market. So even if the stock market crashes, your worst case scenario is you donāt lose anything, while also not gaining anything.
*Cost of insurance and policy expenses are still deducted, so you may experience a decrease in cash value
Can we see your illustration on your IUL ? I want to make sure mine is maximized š
Why don’t you tell the audience about how your beneficiary don’t get your money you invest into permanent/whole life insurance when you die and how you get 1-2% return onlyš
10:08
I donāt see the list of mutually owned life insurance
So you and I are in the same boat. Iām using my insurance policy currently to continue to grow my wealth. However, I added my parents as my beneficiary on this current policyā¦are you suggesting not to do that or it doesnāt matter?
Great video! Very informative ššļ¼ It’s important to educate ourselves on life insurance options.
Any updates about this and why max out Roth IRA first donāt you want to be secured with the life insurance insurance in case you die
Nice job covering this topic, Rose! Saving to my financial besties playlist!
good
Thank you for your time and expertise in making this vid.
I’m married and if on the hope not ever unlikelihood we divorce, can I just change the beneficiary and keep the equity and everything I put into it. Just change the payout person.
Also, can’t I just be my own agent and do my own research. Or, is life INS. like car INS where the agents only work for the INS holders, and they don’t try to find you cheaper rates. They only add on their own fees in the face of the company.
Good basic information.
However, for those who are considered WLI, most policies are written in a way that you cannot receive the cash value at maturity, which is unfortunate, but that’s the way the industry is run. For growth, there are likely better ways to invest than paying the high premiums and receiving a fixed dividend.
Hi Beautiful! I love your content! Do you offer a self paced video, etc on how to grow a youtube channel as an insurance agent?
Insurance is never an investment. Full stop.
Iām sorry but this is such a foolish āinvestmentā. This money is not tax free and permanent life insurance growth is capped, which is how the companies make a lot of their money. Itās also not as tax free as she claims (as others have pointed out). Please people, if you have all retirement accounts maxed out and are still looking to invest more (good for you!!), just dump it into the S&P (and diversify with other low cost index funds). The same $400k that sheās putting into this life insurance policy would be worth $2.7 Million dollars if she just put it in the S&P 500, assuming a 9% growth rate per year over 34 years. Even accounting for 15% capital gains tax means she would have $1.3 Million MORE dollars than this policy will net her. Keep it simple, good luck!
12k a year lol nope…so your premium is 1k a month š
27 year old a 250k policy is 32/mo. Its got way more expensive since 2021 sadly
So asses your family, check if people are dying early get a term life.
-Max 401K with company match
-max Roth IRA
-Have An HSA Account
For permanent insurance, if you die before the age. You just get the premium. You donāt get the 2 million like she says. Because thatās not mentioned on here. That money only goes to you no one else of you die.
My mom is 72 with diabetes .what company would you recommend for her ??? Thanks
Whatās the order before you look into permanent life insurance?
Thank you
This video gave me clarity! š I appreciate the simple and concise explanation. šÆ
I mean like, what’s the typical cost difference between term and whole life for same coverage amount?
Thanks Rose! What makes NLG more powerful and efficient than New York Life?
Very useful
Thanks
@RoseHan & viewers – be extraordinarily careful of the so-called financial gurus like Dave Ramsey and Suze Orman, who frequently misstate the facts, are not licensed & professionally educated on various topics
Idk, why does Dave Ramsey says whole life policies are a scam?
IUL does not have a guaranteed death benefit and if you are not max funding the policy it really isn’t an investment that should be considered. The cost of insurance rises with your age which will eat away the cash value when you get older. Only whole life is the cost of insurance fixed.
My term life insurance states I will get the premium that I paid for the term of 15 yrs…can someone tell me it this is true? She says, the monwy for term ins is gone
Whole life is trash….your beneficiary don’t get your investment when you die….get term life people…invest your money elsewhere
VERY late bloomer! I’ll be 60 this year. Good health, family of longevity. 20 yr Term probably won’t be long enough & my 35 yo son depends on me. Is there a better option that won’t expire & is still affordable enough to pay the premium. WHO IS YAIR? HOW TO CONTACT?
This video was very helpful. Thank you.
She pays around $1,000 a month for her own life insurance. If she got term instead she would have $900 to invest with.
Amazing video!! Thank you
You are so good at explaining all these different investment vehicles! I can’t tell you how many videos I watched on IUL insurance because someone was trying to sell me on it but I still did not understand at all how it worked till I came across your video that has explained it the best! Thank you Rose!
Permanent life insurance is a scam. Iāve been invested in Transamerica for 6 years. I can take my money out penalty free in year 7 which I will be doing. It all sounds great getting tax free money. The think she forgot to mention the premium is way more expensive then term and what really kills your gains is the investing fees are crazy compared to vanguard S&P 500 that are like 0.04%. In my account even though I have been invested for 6 years and have seen huge stock market gains. My cash value is worth less then the total amount that I have contributed. Would have made a nice return by now if I just invested my money into a brokerage account. Whatās funny is every reputable financial YouTuber warn agains this like Dave Ramsey, Money Guy Show etcā¦
Can I buy both term and permanent life insurance at the same time?
When you buy an IUL youāre buying an ART (Annual Renewable Term) policy. Where the insurance component cost goes UP EVERY YEAR. You probably didnāt know that, or if you knew, you are terrible as a financial person.
Term sucks doesn’t pay out cash value
So much knowledge dropped, thanks
You should call the companyās customer service and ask how much you have available out of all the money you put in, youāll then realize how were you ripped-off.
You know about investment accounts, why would you recommend this junk instead?
Thank you for sharing this information. It was extremely helpful in understanding life insurance. Iāve been researching for weeks and youāre video was more helpful than all the others I watched COMBINED! And I watched a lot of āem smh.