{"id":273,"date":"2024-10-09T17:43:56","date_gmt":"2024-10-09T17:43:56","guid":{"rendered":"https:\/\/foundmoneyconsultants.com\/?p=273"},"modified":"2024-10-10T13:23:07","modified_gmt":"2024-10-10T13:23:07","slug":"the-trade-off","status":"publish","type":"post","link":"https:\/\/foundmoneyconsultants.com\/index.php\/2024\/10\/09\/the-trade-off\/","title":{"rendered":"The Trade Off"},"content":{"rendered":"

The Trade Off<\/strong><\/h2>\n

There are many financial experts on the radio these days giving you an overwhelming amount of information. They all have their own strategies to get you out of debt and on the right path for a wealthy retirement.\u00a0 While all of them have different opinions and varying advice, one thing they generally agree on is to buy cheap term and invest the rest.\u00a0 Why is that?\u00a0 Is it because they don’t understand the advantages of permanent insurance, or because they believe you can consistently <\/em>earn 10%-12% investing in mutual funds.\u00a0 While that is unrealistic, this article will not challenge that. Instead, it is about making sure you understand the trade-offs you are facing.<\/p>\n

So what are the differences between term and permanent life insurance?<\/p>\n

Term Life Insurance is exactly what it sounds like.\u00a0 It is life insurance that covers you for a certain period of time (usually 10, 20, or 30 years).\u00a0 The advantage here being, it is initially the least expensive.\u00a0 The problem is, the premiums are guaranteed to go up in price as time goes on.\u00a0 Additionally, you put all of your money into it and at the end of the period, you have nothing to show for it.\u00a0 Except a bunch of receipts!<\/p>\n

On the flip side, Permanent (Cash Value) life insurance is the opposite.\u00a0 It is the most expensive up front, but the premiums are guaranteed to stay the same, go down, or can even stop.\u00a0 Coverage however, will not stop.\u00a0 It will last until you are no longer here.\u00a0 The bonus here being, if you live, you will get all of your money back, plus a bank-type return.<\/p>\n

What do both of these sound like?\u00a0 If you think about it, it is the same thing as deciding whether to rent or own a home.\u00a0 Renting a home is the least expensive up front, but your rent is guaranteed to go up over time.\u00a0 Additionally, when you move, you have nothing to show for it, except for your receipts!<\/p>\n

On the other hand, Permanent Life Insurance is like owning a home.\u00a0 It is the most expensive up front, but the payments are guaranteed to stay the same (assuming a fixed interest rate) and eventually the payments will lower (if you refinance) and\/or stop (when the house is paid off).\u00a0 Additionally, if you have it for 10-15+ years, at the end of it you can get all your money back plus a bank type return. (Homes usually appreciate in value!)<\/p>\n

So the questions to ask yourself are: do you want coverage for a set period of time or for your entire life? Do you want to pay less now and more later, or a little more now and none later?\u00a0 Do you want a return on your money or just a bundle of receipts? Call my office today so I can go over your unique situation and see what makes sense for you!<\/p>\n","protected":false},"excerpt":{"rendered":"

The Trade Off There are many financial experts on the radio these days giving you an overwhelming amount of information. They all have their own strategies to get you out of debt and on the right path for a wealthy retirement.\u00a0 While all of them have different opinions and varying advice, one thing they generally […]<\/p>\n","protected":false},"author":4,"featured_media":274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-life-insurance"],"_links":{"self":[{"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/posts\/273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/comments?post=273"}],"version-history":[{"count":3,"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/posts\/273\/revisions"}],"predecessor-version":[{"id":277,"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/posts\/273\/revisions\/277"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/media\/274"}],"wp:attachment":[{"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/media?parent=273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/categories?post=273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foundmoneyconsultants.com\/index.php\/wp-json\/wp\/v2\/tags?post=273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}