Life Insurance Tips:
Advice For Your Life

These life insurance tips should help you decide on a policy, or policies, that are right for you. Even if you are certain on what type of life insurance best, additional information won't hurt.

You might be asking the questions like a lot of people are wondering:

• What is term life insurance?
• What is whole life insurance?
• How much do I need?
• When should I get it?
• Am I set if my job pays for a group policy?

Unfortunately, a lot of people don't know where to start. Even worse, it's hard to get good advice on life insurance tips. I believe that the most popular advice given by the the media and popular financial experts is wrong.

You've guessed it; we are going against the grain with the advice we give.

Life Insurance Tips

• Understand the Importance

  Life insurance replaces the production lost of the individual that passes away.

  The death benefit of a life insurance policy can do multiple things like:

  • Pay for mortgages.
  • An alternative to college savings plans.
  • Build retirement funds.
  • Donate to your favorite charity.
  • Leave behind a legacy for your future generations.

  Infinite Banking Concept

  See our Infinite Banking Concept 3 part series:

  First, understand the answer to "How do banks make money?". Next, discover the Infinite Banking Concept. Last, learn how infinite banking can accelerate your wealth.

  More importantly, a whole life insurance policy can do multiple things in your living years like:

  • Pay for mortgages.
  • An alternative to college savings plans.
  • Build retirement funds.
  • Donate to your favorite charity.
  • Leave behind a legacy for your future generations.
  • Accelerate your wealth through an infinite banking system.

  No, this isn't a typo. With whole life insurance policies, you can take advantage of benefits while you are alive.

  Once you discover the importance of life insurance, take it a step further and explore the living benefits of cash value life insurance.
  
  

• How Much

  This can be answered by another question: If you knew you were going to die tomorrow, how much life insurance would you want?

  Usually the answers is a resounding, "All that I could get."

  It makes sense. If your house burned down, you would want to be reimbursed for the total value. If your car was totaled, you would want to be reimbursed for the total value.

  Some sites have special calculators to determine how much you should get. However, I don't think calculators are used to determine how much you should insure your home.

  If you do use calculators, keep in mind the this strategy of insuring your life for its total value. You are worth it.
  
  

• Your Options

  There is an ongoing battle between term vs whole life insurance: the two most popular types of insurance.

  In a perfect world, I would pick whole life insurance every day of the week and twice on Sunday. The fact of the matter is, a lot of people cannot either afford the high premiums or are just not aware of the advantages of whole life insurance.

  So, most people go for term life insurance because it's cheap.

  Take this three step approach if you are on the fence between the two.

  • Buy convertible term life insurance. This type of life insurance can be later converted into a whole life policy without additional medical tests. You basically lock in the premium.
  • Get educated on the advantages of whole life insurance. Ask yourself: "How do banks make money?" Implement their strategies to make money for you and not them. Keep reading on this website and soon you'll have a good knowledge base on the benefits of whole life insurance.
  • Convert. Once you're ready, convert your policies to whole life policies.

  My wife and I took this approach. Initially, we couldn't afford the high premiums and lacked the education.

  Once we were able to shift funds and got some education, we converted.
  
  

• When to Buy

  In a word: now. Lock in the cost of premiums especially with whole life insurance.

  As your age increases, so do the premiums. It's always cheaper for the life insurance companies to insure young, healthy individuals.

  This is one of the life insurance tips where time is of the essence. Don't wait too late or else you find yourself with high premiums or in an uninsurable state.
  
  

• Special Scenarios

  Here are some scenarios that people fall into when choosing between different types of life insurance policies.

  • What if I have no children?

    Do you plan to have children? Do you have other loved ones to which you would like to leave behind a legacy when you pass away? Do you have other causes and charities in which you are involved?

    The fact is, children give a reason, but are not the only reason, to have life insurance. Remember, life insurance protects the value lost when you pass away.

  • What if my job provides this as a benefit?

    If your job offers this as a benefit, great. But, it's typically not enough. Take a look at the death benefit and see if it is really sufficient in the event of your death.

    Another drawback is that the policy is null and void if your employment ends.

    Also, these policies do not build any cash value.

  • What if I'm uninsurable

    That's OK. You can insure someone else that has insurable interest: a child or a grandchild.

    I know what you're thinking. Why would I want to insure someone else?

    This is one of the greatest life insurance tips: buying life insurance for children. When utilizing the infinite banking concept, your own personal bank, you can take out policies on younger family members.

    The benefit here is that this means lower premiums. And, you still can control the policy.

    We purchased a whole life policy for our son shortly after he was born. This will lock in his premium cost as long as the policy is in force (as long as the premiums are paid). Meaning, the premiums on his policy will never increase.

Learn now.

I hope these life insurance tips help you decide on determining what, when, and why. Learn the benefits of whole life insurance so you don't get behind the game.

Start young. We started buying policies at the age of 25. Give your whole life policies time to grow. Access the cash value and use it to become your own banker.

These life insurance tips go against conventional wisdom. But, they should all make sense. Get both sides of the story.

Your money, and your life, may depend on it.