There are so many talking heads, and so much information being fed to us that it is hard to decipher who one can and cannot trust and who is just giving sales scripts they have learned from the management team. If you are serious about creating wealth you need to understand the following: The following are Seven Myths Concerning Permanent Life Insurance: Myth #1: Cash value life insurance is one of the worst financial products available, and it is definitely the worst type of insurance you can buy to insure your life. The BEST kind of insurance is term insurance because it’s cheap, and I’m not paying all those extra fees to the evil and greedy insurance company. Besides, don’t insurance companies have a record of being reckless, cheating their policyholders, and systematically going out of business? Fact: Term insurance works great for a period of time, but when that period of time is up, and you cannot afford the increased premiums, what are you going to do? My term premiums jumped from $50 per month to $750 per month at the end of my 20-year term. I have been married for 49 years and now is the season that I really need the life insurance to ensure that my wife will never have to come out of retirement and find a job. Term life works well for young people if they cannot afford permanent insurance; it beats having nothing, but not by much because less than 2% of all term policies written ever pay a claim. It’s like paying rent, and when you get to the age that you need life insurance the most, your rent will expire, and the renewal price will probably be unaffordable. Myth #2: Cash value life insurance is overpriced for what you get. Also, you can never tell how much money you are spending on death benefits and how much money is actually going into the cash value of the policy.
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