Mutual Funds

Do you own a mortgage or have kids that own a mortgage, that requires two incomes to pay each month, small children you wish to see go to college, and different debt payments you pay every month that requires two incomes?

Most younger couples do not have enough money saved to cover their bills for three months if something unexpected was to happen. Much less pay off their bills, keep their home, and remain able to afford to send their children to college if something unfortunate occurred.

Most couples have protected one of their major assets, their house, but have left their bills and their youngsters education uncovered. It is not their fault; many have been misinformed or sold the wrong asset insurance.

Cash value asset insurance coverage is likely one of the worst financial products available. Sadly, over 70 percent of the asset insurance policies sold today are cash value life insurance policies. A cash value policy is an insurance coverage product that packages insurance coverage and savings together. It is the most expensive type of insurance per 1000 dollars of coverage.

But the worst factor about it isn’t the insurance coverage it’s self, it isn’t even the associated fee, what is the worst factor is the agent that sells a cash value policy to a young healthy couple that can’t afford to buy sufficient protection to guard all their assets with that sort of policy.

Why, you may ask, would an agent do something like this, realizing they’re leaving a households greatest assets unprotected?

Good question!

I’ll answer it like this… from the agent’s point of view. “I know that cash value asset insurance is a coverage that protects a person for his or her complete life (age 100 in most cases). They’ll never need to purchase a policy ever again, the premium payment by no means goes up, and the policy can’t be cancel if they become ill, and they get the added bonus of a financial savings program along with their coverage that they can borrow money from (with a little interest).”

“I do know it is the costliest policy and most young people cannot afford to cover all their assets with this type of assets protection… and I additionally know I’m out here to make a living for me and my family and I get paid the biggest commission once I sell one of these policies.”

It is sad but true; many agents are putting their needs before yours.

Most younger couples need more asset insurance coverage, because of the mortgages, younger children, and bills… however mainly as a result of they do not have a lot of money saved.

As a couple grows older, the youngsters grow up, the mortgage is paid off, and the bills are paid, a couple needs less insurance and has more cash (if they have planned properly.) A wonderful alternative to cash value asset insurance is a term asset protection insurance coverage plan.

How can this help?

Another good question…

Term life:

  • Less expensive… making it easier to guard your whole assets… while having more money to save in a program with a higher interest rate… plus the added bonus of never having to borrow from yourself with interest…
  • Covers 5, 10, 15, and 20 year periods… you only take the coverage for the time you need to build up your savings… see your youngsters grow up… and pay off your bills…
  • No low interest rate savings program connected to your policy… you choose the savings program you want with full control of how to best invest your money… when to invest… and how much you wish to invest.


You’ll nonetheless need to keep your eyes wide open and look out for agent’s tricks even when you’re shopping for term asset insurance.

One of the things you’ll need to look for is; what’s the term period an agent is promoting you. This is very important if you’re comparison shopping. Make sure you’re looking at an apples-to-apples comparison. A 10 year term price compared to a 10 year term price and not the price of a 10 year term compared to a 5 year term. Agents will do that to show you a lower cost coverage when they know they can’t beat the price of their competitors for a policy covering the same term period.

Many agents will conceal the fact they’re not evaluating the identical term periods by telling you how much more protection they will get you for a similar price. Realizing full well their selling you a shorter period of coverage that may make it necessary for you to buy another policy sooner, at a higher cost, and pay another commission to the agent.

Term assets insurance coverage is not perfect:

  • If you become ill… it’s possible you’ll not be able to get a brand new coverage at the end of your term… so make sure you do one of two things… renew you policy before the end of your term if you think you’ll need it for an extended period the you initially planned for… or buy a longer term when making you initial purchase.
  • No savings plan… even thou the savings program of the cash value asset protection plan is usually not a very good program it has one thing that for some individuals is beneficial… you do not have to set it up, because it is arrange for you… so if you do not set up your own savings program you’ll be better off with the cash value program in relation to saving cash only.

Term asset protection insurance coverage is probably the simplest form of asset insurance. It was developed to provide non permanent asset insurance protection on a limited budget. Since term asset insurance will be purchased in large amounts for a comparatively small initial premium, it is well suited to short-range targets such as asset insurance coverage to pay off a mortgage, or providing additional asset insurance coverage protection through the child-raising years.