Buy Term Insurance Instead of Life Insurance – Insurance Magazine
It is a cost of mmon to buy life insurance with an insurance firm. There is another option. In this clip, you will be taught what makes term insurance a better option.
On this particular episode of The Ramsey Show, Dave talks about the difference between life insurance and the term insurance. According to Dave that life insurance is the most costly policy. It is true that whole life insurance is 20 times more than the term insurance on average. Because a large part of the life insurance proceeds is utilized to finance a savings account within the policy, it can be described. This may not sound like a bad thing at first. This cash value earns only one to 1.5 percent annually. This is an extremely low return. If you were to put this money into a mutual fund and earned about 5-10% per year. It is therefore better to buy term life insurance and then deposit the rest into an investment fund that is earning more. Everyone is different. In certain situations it is possible that life insurance would be an ideal choice.