The Myth
Life insurance is a valuable planning tool, providing protection for your spouse, your children, your business, or other beneficiaries if you were to die prematurely. There are different types of life insurance – Term, Whole Life and Universal Life.
Unsurprisingly, term life insurance is by far the most common type of life insurance, simply because it is, as you know, the most affordable. Therefore, most people have heard the idea of buying term insurance for a lower premium so that the difference saved could be invested, accumulating future income.
However, investing wisely is a key factor in determining the success of this strategy. And, as you know, investing wisely is especially difficult in times of market volatility, like we’ve been experiencing over the past few years. Many people that take this approach do save on lower life insurance premiums but fail to invest the difference. If you are serious about saving for your future, consider the advantages of a cash value life insurance plan.
IUL Software
Do you have clients who have considered a “buy term and invest the difference” strategy? We have proprietary IUL software that will help you generate a turn-key presentation comparing this strategy to an IUL policy.