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by Roger Chartier www.HowCanIRetire.net - HomePage


Insurance For Retirement

Read about it all below the video

Whole Life

A whole life policy will pay out a specific amount of money when you die as opposed to term life insurance.

Also, there is the part where you have a cash value from investments that the insurer makes.

The payments are usually the same during the life of the policy.

It is tax deferred, and you can take a loan against the amount you have put in with out tax penalty.

Although the majority of people don't live to age 95 or 100 many insurance policies, will pay out at that time

This is good to take care of your spouse or any other dependants or someone in your will.

You can take out the cash value before you die but lose the benefit at death.

When you die the cash value is given over to the insurance company, and the benefit amount is paid to the beneficiary.

Variable Life

Is well defined by the title. You can invest in variable payments up to the legal limit set by the IRA and the investments can be in stocks, mutual funds, bonds, etc similar to an IRA.

You can die at any time, and the money will be paid by the insurer as long as there is enough cash in it to pay the cost of insurance in the policy.

There is no guarantee as far as returns are concerned.

Universal Life

It is a sort of mixture of term insurance and investment in a money-market and pays out at the markets rate of return.

Usually there is no guaranteed rate and the benefit is a possibly higher return.

Any payments that are above the cost of the policy are added as a credit to the cash value of the policy.

You can skip payments if you have enough money in the policy, but the cost of the insurance, as well as fees and any other policy charges, are deducted from your balance.

Term Life Insurance

Usually it is a bad deal as only 1-2 % of people ever collect on it, and at the end there is no cash value to show for it all.

It sounds like a bad deal unless your spouse or beneficiary thinks you are going to get killed sooner than later.


Disclaimer: Before you make an investment get legal or professional advice.