money matters

There are so many different types of insurances, in particular when it comes to life insurance and I think people out there are very confused by it.

Different types of life insurance are almost like the different flavors in a yogurt shop. A lot of them. In the broad sense there's really there's term insurance and you got permanent insurance. Term insurance is designed to be temporary so you're insuring for a shorter time frame for a mortgage or something like that where as a permanent plan insurance whole life or universal life are generally designed to go throughout your life.

Now there's a difference in cost between the two right? Is there a difference in qualifying for them?

The qualifying no, it's generally the same thing whether it's term or permanent it doesn't matter. But underneath the term there's a whole bunch of different types of term as well. You can have annual renewable term which is the cheapest. It starts out and goes up a little each year. You can do a five year term or a ten year term where the rate locks up for five years. Then goes up in five year increments or ten or twenty. So there's lots of different flavors inside the term insurance. Or the permanent. So back to your question on cost the term insurance is generally the most affordable especially while you're young but if you for a long period of time but eventually it will force you out it will keep going up. If it's a ten year ten the ten year level is going to go up.

Is there a tax advantage to buying insurance? The insurance a person dies or something happens?

For the most part life insurance is income tax free. And so, if I own a policy, I die, I leave it to my wife that's all tax free benefit. There are some ways if you structure it wrong it will be taxable but generally it's tax free.

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