Oct
17
2006
Big difference in term vs. permanent life insurance pricing!
Author: Byron UdellPermanent insurance is often portrayed negatively when in fact it’s a great product….but only when you can afford it and the average American cannot. For example, a 40 year old male, non smoker in healthy condition can get a 20 year level term policy with a death benefit of $500,000 for $365 a year. A whole life product would cost him about $7,000 a year.
Most financial advisors will advise their clients to buy a term policy. Why would they do this if permanent policies are so good? Because 9 out of 10 times the client will pay the first year and then lapse the policy. And the #1 goal of life insurance is to protect the family should the breadwinner die.
It doesn’t matter how great a permanent policy might be…because in the end, if you can’t afford it it’s not going to work for you.
