Leah’s Cafe

Everyone especially the insurance agent will tell us it’s important to be insured. But, do you know that many of us are sold the whole life policies or investment linked policies, which are only good for the agents who sold them? Sadly, over 70% of the life insurance policies sold today are cash value policies. A cash value policy is an insurance product that packages insurance and savings together.

If a married man is the main bread winner, what he needs is a 20 years term life insurance. Term life insurance is an affordable life insurance, it costs only a fraction of what you pay for a cash value policy. You can invest the difference using other means. Do not invest money in life insurance; the returns are horrible. Your insurance person will show you wonderful projections, but none of these policies perform as projected. That also means when the 20-year term is up, the man shouldn’t need life insurance at all - because with no kids to feed, no house payment, and retirement fund saves up, his spouse will just have to suffer through if he die without insurance.

No matter what the insurance agents tell you, insurance policies are for assurance, they are horrible choices as investment. Do you know of anyone who got rich with insurance and still alive? Yes, many, the ones who sold them!