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To: Venturer

Amanda. Do not buy term insurance.

It is never paid off and gets more expensive and less value as you grow old.

Term insurance is not a forever thing, hense the name term, you are only in need of it for a short term. It is in no way to be a replacement for a whole life, investment, mutual fund, retirement fund. I have enough to keep my income at its current level, if anything were to happen, my wife could invest it and replace my annual income with the interest it earns. Now, when the kids are out of college and we have no mortgage, we cancel the term policy - we don’t need it anymore. Term life insurance is not wealth building tool, but an income protection tool.


12 posted on 02/05/2013 5:24:46 PM PST by Cyclone59 (Obama is like Ron Burgundy - he will read ANYTHING that is on the teleprompter)
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To: Cyclone59

It is never paid off and gets more expensive and less value as you grow old.

....ah Cyclone, Venturer is right, at her age, the term will expire when she can’t afford to replace it. If you die will your wife be fine with 1% interest and 40% market losses like in ‘08? Whole life never goes away, never costs more and at her age if she buys it from a quality dividend paying mutual company it will pay tax free return of premium at retirement time. Less than 3% of term policies ever pay off... don’t rent the insurance until its unaffordable, own it and let it compound!

ymmv


16 posted on 02/05/2013 7:07:16 PM PST by ElectionInspector (Molon Labe...)
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