Does Term Insurance Make Sense? | Wealth Nation

Folks, it is time to buy term insurance. That's right. We primarily sell whole life insurance. But in this video, we are going to tell you why you should start looking into term insurance, but not for the reasons you may think. My name is Carmen. And I'm Darius. And when it comes to using term insurance, it doesn't have any cash value. So why is, why would you have it? When you think about it, the insurance company just banks those premiums because only 2% of that, all the term policies actually pay out. And that means somebody actually passed away. So outside of that, why even have it? Well, before we get into it, make sure you subscribe to our channel and hit the notification bell to be notified when we post new videos. So like I said earlier, we primarily sell whole life insurance. And the reason being for us is because we understand this concept called infinite banking, where you can utilize the cash value that grows inside of a whole life insurance policy to further your financial goals. And that was the juice we had been drinking since we heard about this concept. But one thing that we feel as we continue to grow into our career, as far as being insurance agents and in the financial industry is the fact that there are far too many Americans that are underinsured. And that really concerns us, especially with a recent situation that we had where we lost our daughter and having to look at life insurance from a completely different perspective. And that's why we really want to come to you today and talk about term insurance being an opportunity for you to have life insurance for your family if you can't afford whole life insurance. So we don't want you to wait out until you can afford a whole life insurance policy because it is more expensive because it covers your entire life as opposed to a term policy, which may cover you just for a decade or two. So the idea behind term is it's going to be significantly cheaper and whole life is going to be more expensive because it does come with other benefits and perks. But what the gap that a lot of people don't talk about is something called convertible term insurance. And convertible term basically means if you get a term policy with a life insurance company that also offers whole life, you can convert that term policy once just before that term is up to a whole life policy. And there's a lot of things that you wouldn't have to go through in order to get that policy because you're converting an existing policy over within the same life insurance company. And this really helps because one, you have life insurance at the end of day, which is the most important thing. And then two, you have the ability to convert into a whole life insurance policy when it makes more sense for you financially. So those are the biggest things that we want to address in this video is understanding what your options are as far as life insurance is concerned and knowing that you do have the ability to convert term. So we say that term always makes sense no matter what the circumstances because at the end of the day, you should have as much death benefit as the insurance company will give you. Right. And even when you have a whole life insurance policy, there may be times where you should also have some term insurance on top of that because it allows you to increase your death benefits. So if something was to happen to you or a loved one. And that's why we were saying earlier as far as like Americans maybe being underinsured because maybe they have insurance through their employer and they have, a small death benefit or they have a whole life insurance policy. And because of the cost of the policy, it may not cover your entire income should something happen to you. It may just cover the mortgage for example, but it's not going to take care of 10 years worth of expenses. So the idea behind term is to do maybe a combination of both have whole life and some convertible terms. So that again, when it makes sense for you to convert the term into whole life, you can do so. And as I'm speaking through this, I'm thinking about those of you who are probably watching this going, well, why don't I just have term in general instead of whole life? So going back to understanding the different products is when it comes to term insurance, it's only for a term. It's only for a specific period of time. And you have to understand that if you get term insurance today, 10 years from now, when your term may be over, you're going to be 10 years older, 20 years, whatever. For example, you'll be 10 years older. You have no idea what your health is going to be like. And you have no idea what your financials could potentially be like. And you may or may not be able to afford this policy that is now 10 years older, as you are 10 years older. So these are all of the things that you have to think about. And the reason why we always focus on whole life is because you get a policy today, you are insured for your entire life, and you don't have to go back and forth thinking about renewals and how am I going to convert this or that. And convertible term has actually been really resonating with Darius and I specifically, because we recognize that at every opportunity, as we continue to grow and expand our business, we need to cover that gap, right? So every time there's opportunity for us to have more revenue, we have to cover that gap. And it may or may not make sense to add an additional whole life insurance policy, but it will always make sense to throw a little bit of term on it, right? A little sprinkle on it because you just never know. Right. We can throw the maximum amount of term that we can possibly put on ourselves. And as our finances increase, we can just start converting that term over to whole life and still keep the difference of the term existing. Are you looking for a life insurance policy specifically designed to help you accomplish your financial goals? And if you have a policy, or if you're looking for more education, would you like to be a part of a community with like-minded individuals who are all using life insurance to accomplish your financial goals? If so, click on the link below. We would love for you to join the Wealth Nation Money School. Now, I think where the confusion happens when we have this term versus whole life conversation is financial experts are talking about being able to invest the difference. And I think just because we have that conversation, we have the conversation about our finances and what we can do with those funds other than put it into a whole life insurance policy is where people get confused. Because first and foremost, you want to make sure that you have a life insurance. And then what the idea is, is let's say a whole life insurance policy is $10,000 and you can get the same term insurance for $1,000. That $9,000 difference, you're supposed to invest. You're supposed to invest. But if you hear the term by term and invest the rest, that's what Darius is talking about. And I think that adds to the confusion, because there's an assumption there that investing in life insurance goes in the same conversation it does, but not in the same wheelhouse. It shouldn't even be spoken. It shouldn't be a saying. And here's the reason why. Because if you invest the rest, there is no guarantee that the money that you put in the investment is going to cover your income today, tomorrow, 10 years from now. There is no guarantee. But life insurance, there is always a guarantee that your income will be replaced. And you can see I'm a little passionate about that, because it just burns me up that people think about that. Because let's just have this conversation, right? We pay $1,000 on term instead of the $10,000. And I take $9,000 and I invest it in the market year after year after year. How long is it going to take me to cover my income with a $9,000 investment in the market? Let's call it 8%. You can do the math. I can't do it that fast. But you get what I'm saying, folks, right? So that's why that phrase doesn't make sense. That's why it's inaccurate. And that's why there's millions of Americans that are underinsured because of that misconception, misinformation that is being plugged into our ears. So just think about that for a second, because there's never going to be a guarantee that your investment portfolio will cover your income. There will always be a guarantee for death benefit covering your income. And again, we are not investing with life insurance. And we can't stress this enough for you to make sure that you understand what's going on. Because once you understand the value that your loved ones are bringing to your household, there is no amount of money that you should be leery with in making sure that their income and your livelihood will be protected should something happen. Or even maxing that out, because it's not an either or thing when it comes to life insurance, that term will eventually run out, it will eventually run its course, and it's going to become super a lot, it's going to become more expensive, I will say that it's going to become more expensive with your whole life insurance policy is going to stay the same as long as you maintain your premiums. But the conversation we're having is if you don't have life insurance, you need to at least have term to cover yourself. As you get your finances together, it always makes sense to have term even if you have a whole life insurance policy, you want to make sure that your family's taken care of because you just never know what's going to happen. Now, aside from having that conversation that your family's covered, the additional funds that you do have invest in the market, invest in real estate, invest in whatever you want to invest in. Yeah, separate conversations, life insurance over here, investing is over here, they don't come together by no means necessary. And on a serious note, you know, Darius had alluded to earlier that only 2% of the population is paid out, you know, as far as death claims are concerned with term insurance. And we are part of that 2% now with the loss of our daughter. And that's why it's even more important for us to stress having coverage and making sure that you have your ducks in a row financially because you just never know. There is no way in the world we could have predicted this. But we are we have gone through this experience so that we can share more vulnerably, you know, the things that happen with life insurance that a lot of people just don't talk about. This is one of those conversations where we say, don't take our word for it, but take our word for it. When it comes to having life insurance on everybody in your family, you just never know if term insurance is what's available to you because of your income. By all means, please have term insurance at the bare minimum on everyone in the household. And we can help you with that. So if term or whole life is where your financial pocketbook is going to take you, we would love to help you at the Wealth Nation. So you can click on the link below, right? And if you want more information on life insurance and life insurance from a perspective of a life insurance agent, check out our next video. And don't forget to own your own lifestyle or someone else will. Transcribed by https://otter.ai