When I can find his show on the radio, I listen to Dave Ramsey. He has a daily show plus several books and an educational seminar package. He is big on paying off debt and encouraging folks to only owe on their house.
Even there, he says the paid off mortgage is a status symbol better than a BMW.
Dave, like many finance advisers who are not selling investment or insurance products, encourages term life insurance. Term life insurance is just insurance with no investment or cash value build up.
He tells his listeners to buy term life insurance plans offering 10,15, 20 and 30 year guaranteed level premiums. Dave usually mentions 20 year guaranteed level.
Why would he recommend level premiums. Term insurance is often sold a year at a time. The older one gets, the closer the actuaries figure we are to the grave and the insurance companies are to paying out.
A level premium is easier to budget year to year. While you carry term coverage, Dave encourages retirement and other investment strategies.
The old life policies with cash value build-ups were sold as supplements to retirement. But they are not good investments. These days mutual funds and a diverse investment strategy trump whole life and universal life policies.
'til later
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