Have you ever wanted to get an apple at the grocery store and you stand there dumbfounded about what apple to get? There are so many varieties of apples and they all have a little different color. Do you want to the green one, or the red one or the orange one? It’s all so confusing…
Trying to buy life insurance can feel a lot like you’re trying to pick the right apple. I promise you it’s not as hard as you think. In this podcast I will talk about all the different types, including how you can figure out how much you should buy. If you want a little cheat sheet, this should help you out:
Term Insurance– the cheapest, and last for a given term from 5-30 years. It is like renting insurance.
Whole Life– more expensive, but gives you something called cash value, which means that your money is growing inside this policy
Indexed Universal Life– this type is a middle person between whole life and Universal Life. It offers cash build up as well and your returns in the policy are tied to an Index, like the S&P 500. If it goes up, you get that % to a cap. If it goes down, you hit a floor of often times 0%.
Universal Life– this type of policy also accumulates cash but is not tied to a stock market index. Instead, the company will pay you a certain percentage based off their earnings in their investments.
Variable Universal Life– this type of policy is the pretty risky and your returns are tied directly to the stock market. If the market goes up, great, if not your policy loses value so you need to be very careful.