> > Life insurance is for people who have no retirement plan in place. > > If you have a solid retirement foundation in place, investments, IRAs, > > etc ... Then life insurance is not needed. > > Umm... not really. (Perhaps I'm being annoying about this because this is > my line of work.)
Agreed. Generally, people require different levels of insurance at different points in their life. For example, alot of people get term life insurance when they have kids. Term gets more expensive as you age, but is real cheap at younger ages. Most parents are young enough to get some term at a fairly cheap rate. You keep the term till your kids get old enough to be on their own and then you don't need it anymore. In that care it's a safety net for your kids in case anything happens to you while you are their provider and they are dependant on you Whole life is a different animal, and is used for different things (see below). > > It's purpose is if you die suddenly, or if you have no retirement nest > > egg, then your survivors would be able to pay off your debts and bury > > you, and be able to live if they relied on you for their sole support. > > Exactly - but life insurance and retirement plans are two different things > entirely. Actually, while they are different, however Life Insurance can be an investment too. I must state at this point that although I have worked in the Insurance industry before, I am not currently a licensed insurance agent and nothing I say in this email should be considered professional advice, and you should seek a licensed agent for professional advice. I happen to have whole life insurance policy, and here are some of the features of that policy as it relates to an investment or retirement. It keeps a cash balance as you put money into it. This is my money and I can take it all back out anytime I want. This cash balance will gain interest, though a lower rate than many other investment vehicles, it's still interest and is typically better interest than a savings account. I can "borrow" money out of the policy for things like buying a house or paying off debts. I don't even have to put that money back into the policy, though if I never do, the benefit will be reduced by the amount I borrowed. In this way it is similar to a more traditional investment. Also, if I manage to make it to 100 years old, I get the whole benefit - all of it - as if I'd kicked the bucket. Of course, by then I would have paid enough into the policy that the payments + the interest would be equal to the full payout. In this way it is similar to a retirement plan, though one for very very old people. :) Anyways, I hear people saying things about Life Insurance all the time that are invalid. Especially on TV. You might or might not have a need that can be filled with Life Insurance, but disregarding it outright is not a smart thing to do. -Cameron -- Cameron Childress Sumo Consulting Inc http://www.sumoc.com --- cell: 678.637.5072 aim: cameroncf email: [EMAIL PROTECTED] ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Find out how CFTicket can increase your company's customer support efficiency by 100% http://www.houseoffusion.com/banners/view.cfm?bannerid=49 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:148989 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
