Today on The Wealth Secrets Podcast, Sean Adams talks about life insurance. Well known financial advisors like Suze Orman and Dave Ramsey have deemed all life insurance products to be bad investments. But are they wrong?

Sean debunks their blanket statements by going into detail about the different types of policies and insurance companies. More importantly, he explains how the wealthy use life insurance as strategic investment tools.

[03:58] Types of Life Insurance
[07:40] Why is There an Aversion to Whole Life Insurance?
[10:34] Find the Right Advocate for You
[13:13] Cash Value and Loans from a Leveraged Life Account
[17:05] Stock VS Mutual Insurance Company
[21:40] Look for Tailored Advice and Tips

Types of Life Insurance

Term life insurance provides protection for a set number of years from unexpected death. It is very affordable and easy to put in place. The caveat is that it does not have a large death benefit. Financial gurus often advocate for term life insurance as a low cost, convenient safety net. It’s worth stating that less than 1% of term policies are ever paid out. Premature death is unlikely to happen. Once the term is over, the premiums you paid will not be returned and you are no longer covered by the policy. Getting a term life insurance is like renting a house. It’s an expense that you pay every month but there is no earning potential.

The Aversion to Whole Life Insurance

It’s understandable why experts like Suze Orman or Dave Ramsey dislike whole life insurance. There are lots of stories about clients getting ripped off by inflated premiums. Unfortunately, this usually happens with traditional whole life insurance policies. On average, it takes about 10-20 years before you can reap the equity from such policies. With cash value whole life insurance policies, 10% of your payments go to the premium while 90% of it goes to the cash value.

Find the Right Advocate for You

Choose an agency that will be transparent with you. In this way, you can protect your best interests. The wealthy have the best lawyers, agents, and professionals that help them understand financial products. With the expertise they have, they are able to structure policies in a way that benefits them the most. Similarly, you should look to partner with the right people that can help you take advantage of financial tools.

Look for Tailored Advice and Tips

Financial gurus have a large following, most of which are average earning Americans. Their main goal is to help people get out of debt and to provide them with cost effective solutions. Bear in mind that such advice is not applicable to individuals who have above average earnings. Instead of heeding general counsel, look for tips that are suited to your specific circumstance. Always do your own research and take everything you read or hear with a grain of salt.

Connect With Sean:

Facebook: https://www.facebook.com/profile.php?id=100060279543976

LinkedIn: https://www.linkedin.com/in/leveraged-life/

Instagram: https://www.instagram.com/sean_adams103/

Youtube: https://www.youtube.com/channel/UC0i91Q-fFy70LkaFxvfnGpg

For more videos and resources, visit leveraged-life.com. Do you have questions and feedback? Get in touch with Sean Adams through his email: sean@leveraged-life.com.