Life insurance is wildly misunderstood and wrongly oversold. We want to change that.
In today’s episode, we take a deep dive into this complex topic and break it down for you in a simple, easy to understand format.
If you don’t learn how to save thousands of dollars, we trust you will at least learn how to save yourself thousands of future headaches.
Topics we discuss:
- Why we buy life insurance, to begin with.
- How to know when you need it.
- What types of life insurance should you consider.
- Where to buy it to make sure you’re getting a good deal.
- Why you might not want to buy life insurance through your employer.
- Think you have a long-lost life insurance policy? We tackle that, too.
How to Listen to Today’s Episode
Episode Links & Resources:
0:46 – Welcome and introduction to the topic
1:50 – Listener Question: Brad from Carlsbad wants to know about starting a 529 plan for his grandchild
3:16 – When you might not want to use a 529 plan to save for college
3:41 – Tax rules for 529 contributions in California versus other states
4:17 – What to look for when picking a 529 plan in California
5:51 – How to set up a 529 plan as a grandparent to make sure you don’t cause financial aid issues
10:09 – A lot of folks are throwing their money away by not paying insurance premiums
11:18 – Motivation for buying life insurance
16:38 – Do you need life insurance? What is the risk of not having any?
18:40 – Defining Whole life/Permanent life policies
20:51 – Who might consider using whole life insurance
23:42 – Reasons to avoid whole life insurance
24:43 – Defining term life insurance
26:16 – Laddering term policies is one of our favorite strategies nobody talks about
27:31 – Why term life insurance makes sense for most people
28:27 – How and where to buy life insurance to make sure you are getting a good deal
33:25 – Should you get life insurance through your work
35:33 – Locating lost insurance policies through the Life Insurance Locator Service
36:29 – Should life insurance be a savings vehicle?
39:16 – Bonus question: Should parents with young kids put leftover money into a life insurance policy or 529 plan?