re: are you getting your financial advice from the same people who told you looked awesome on prom night?

(No, this is NOT my prom picture, lol!)

by Teresa Kuhn, JD. RFC. CSA
Authorized Bank on Yourself (r) Advisor

One of the most pervasive pieces of financial misinformation I have heard over the years is the venerable and oft-repeated mantra:

"Buy term and invest the difference"

You've heard it on TV...

or from your mom who waggled her finger at you while she said it...

Your insurance guy friend swears it is the ONLY WAY TO GO...

your plumber, barber, fishing buddy, etc...

they're all true believers in this concept...

"Buy term and invest the difference sounds simple enough...

it evens makes sense on the surface..

However, when you dig a little deeper,

there are issues which "buy term and invest the difference"  doesn't address.

For example:

1. Most of the term policies advocated by financial "experts" do not increase the 

    death benefit level during the policy term.  This means there is no remedy for inflation.
   (and I believe that inflation is bound to be much higher in the future!). 

   Bestselling author (Bank on Yourself) Pamela Yellen did the math and 

   she figured it out.  According to Pamela:

   A $250,000 20 year term policy,adjusted for 4% inflation, will have
   lost 56% of  its' value! 

   Even policies which include an "increasing benefits rider" may not increase at a rate that
   will overcome the demon of inflation. 

2. Your future poor health:  Some term policies are written so that if your health 

     deteriorates during the policy term- your renewal rates increase.  

     And if you don't renew and try to seek coverage elsewhere, you might discover that 

     you are uninsurable- at ANY price.

3. You can invest the difference easily enough, but you can't "time the market" or 

     accurately predict how much money will be in your account when it comes time to retire. 

     With the types of accounts I design for my clients, they always know exactly how much 

     they have.  They don't have to worry about timing the ups and downs of the stock 

     market.  When they need it-the money is there.

4. "Buy term and invest the difference" advocates usually know nothing about the
      specially-designed whole life policies I use to structure my financial plans. 

 
     These policies are only written by a few select companies and have special provisions 

     which are unlike those of traditional whole life.  Any advisor who assists their clients with  

     these policies must have thorough training.  

     That agent must also be willing to forego the usual high commissions on whole

     life in order to make the plan work for their clients.
 
    The policies used in self-financing are far beyond regular whole life policies in both 

    complexity and purpose.

5. When evaluating plans such as the one I recommend to my clients, the financial gurus
    don't factor in the tremendous amount of money my clients save on interest and fees.
    By financing your large purchases (ex: your car) yourself, you avoid having to pay 

    thousands of dollars in interest and fees. (my clients LOVE this!)

Now, just for the record...

I believe that everyone who can afford to do so should have as much life insurance as possible. 

Term IS a great way to get more coverage for less money and if you can get term- you should have it.

However, the primary reason for getting one of the specially-designed whole life policies has little to do with with the death benefit...
 

Instead, the idea behind these policies is to provide you with a savings vehicle that gives you growth, stability, and safety in sharp contrast to the ups and downs of the stock market. 

Also, you will be able to pay YOURSELF the interest you used to pay when you borrowed from banks or loan companies, enabling your account to grow at a much faster rate than ordinary whole life...

The permanent insurance you also get is just icing on the cake...

To learn more about how I can help you avoid paying too much money to banks and finance companies...

Call me today

Teresa Kuhn, JD, RFC, CSA
www.safeharborboy.com
www.ibankonme.com
www.ibankonmyself.com