A tutorial on the most common types of life insurance.
20 COMMENTS
better invest your money in mutual funds where you pay less expense ratio, less fees, and less restrictions
then what is maturity term?
so what happens in a term if you develop cancer or some other disease?
Technically term life can be renewed after the term, just at a much higher premium.
Whole life insurance is a scam.
Khan Academy does not understand whole life, was incorrect in his explanation and should not teach anyone about it.
Given this, you should not mirror the video as it contains falsehoods.
Just a thought.
another question about the point you mentioned at the end of the video. you can end your policy and get the cash payout to get more money, but that's assuming you know how much money has been accumulated, surprising that the company would make that balance viewable…
"unless you know something the rest of us don't know…" xD but hey, what if you live long enough that your total annual premiums paid goes over the payout? o.O
You missed the plot on this. 1. if you buy participating whole life there are dividends which, if reinvested, serve to buy 'paid up additions' which increase the face amount of the insurance. alternatively the dividends could reduce your premiums. 2. Term does not go on forever. if you are 35 years old a d buy a 30 year term, if you hit age 65 and want to renew you are dependent on your insurability. some people pay term roulette and go with shorter cheaper term periods, but they run the risk of a medical or lifestyle factor that impacts their insurability.3. Life insurance proceeds are generally income tax free. If you buy term and invest the difference and die there are tax consequences when beneficiaries ell the investments (although there would be a step up in basis at death)
This is a terrible explanation of whole life. While 90% of it isnt effective, there are two maybe three MUTUAL insurance companies where a case could be made for it.
New York Life is #1 in the country ,they pay dividends (even though its not guarantee)for the past 170 years they have been paying dividends to policy holders, have a cash value, if become terminal have access to the cash last half of the year,also their is the disability rider and Chronic Care Rider. You pay few dollars for a whole life policy but its worth it at the end. Prepare today enjoy tomorrow. for more info http://www.newyorklife.com
Any good policies/companies recommended for term life insurance?
Everyone's situation is different. Just from personal experience: my grandparents bought very inexpensive premium-wise insurance on my mom at birth (in 1930s); when they died and she discovered policy, it was paid up and worth much more than ever paid in. I made the phone calls as company had changed hands many times – and my parents split the money with me. Worked out well for all. Alternatively, I have an autoimmune disorder – not very insurance but am single no kids. By buying small amount of whole insurance through company vetted by AAA – I have insurance no health questions (started after age 50 but before age 55), have cash value, if become terminal – can access one half in last year and still my niece gets the other half. Not bad for an otherwise uninsurable individual. TALK TO A FINANCIAL ADVISOR NOT SELLING A PRODUCT – IT IS WORTH $150-300 (or more depending on your needs). IT IS COMPLEX STUFF. I do think the $1/month my grandparents paid can't be beat! And AAA is great.
so if u pay the premium of the whole life policy, how much money get to the cash saving??
The problem with this video is that it makes a blanket statement that you pay on whole life your entire life.
Although that is true for many whole life policies, it doesn't have have to be that way.
There are whole life policies out there that you pay on for 10 years, 20 years or to a certain age and then you never pay on them again. They're called paid up policies, or you might hear them referred to as 10 pay life, 20 pay life, or life paid up at 72. Then there's what are called single premium whole life. In a single premium whole life you pay one premium and then your insured for the rest of your life.
Great to be able to hear it from a familiar voice.My son uses Khan Academy and Sal's videos have helped him through many a math problems.Now , today, he has helped me get an understanding of Life insurance! Thanks Sal!
Can only assume that Farhod Sulton is a whole life insurance salesman. As for "inaccuracies" regarding cash vs. death benefit, it's just a hypothetical situation — of course anyone watching these videos to speak to their own insurance provider for specifics. Excellent video.
another thing to consider from my experience is that investing the difference means there is risk involved, with whole life insurance you have certain guarantees that may be more suitable for risk-averse clients
i'd like to see a comparison of your buy term and invest the difference strategy versus an overfunded whole life or vul. Your strategy will not hold up past 5 years
7/7/15 topic of the day it is written in the book that (WHOLE LIFE) that
Whole life is often called (PERMANENT INSURANCE) because the maturity date is (BEYOND) the life (EXPECTANCY) of most individuals. However, a close look at the policy (COMPONENTS REVEALS) that a whole life policy actually consist of a (COMBINATION) of (SAVINGS ELEMENT) (THE ADVANCING CASH VALUE) and (DECREASING) amount of (NET) insurance (WHICH IS DIFFERENCE BETWEEN THE CASH VALUE AND THE FACE AMOUNT OF NET INSURANCE PROTECTION WOULD HAVE DECLINED (ZERO) so many names for cash value (cash value) is money from money you pay taken by insurance company which they invest and give you a small % of earning of your own money put in what they call "savings" or cash value why not invest it yourself and keep all profit not just portion.
better invest your money in mutual funds where you pay less expense ratio, less fees, and less restrictions
then what is maturity term?
so what happens in a term if you develop cancer or some other disease?
Technically term life can be renewed after the term, just at a much higher premium.
Whole life insurance is a scam.
Khan Academy does not understand whole life, was incorrect in his explanation and should not teach anyone about it.
Given this, you should not mirror the video as it contains falsehoods.
Just a thought.
another question about the point you mentioned at the end of the video. you can end your policy and get the cash payout to get more money, but that's assuming you know how much money has been accumulated, surprising that the company would make that balance viewable…
"unless you know something the rest of us don't know…" xD
but hey, what if you live long enough that your total annual premiums paid goes over the payout? o.O
You missed the plot on this. 1. if you buy participating whole life there are dividends which, if reinvested, serve to buy 'paid up additions' which increase the face amount of the insurance. alternatively the dividends could reduce your premiums. 2. Term does not go on forever. if you are 35 years old a d buy a 30 year term, if you hit age 65 and want to renew you are dependent on your insurability. some people pay term roulette and go with shorter cheaper term periods, but they run the risk of a medical or lifestyle factor that impacts their insurability.3. Life insurance proceeds are generally income tax free. If you buy term and invest the difference and die there are tax consequences when beneficiaries ell the investments (although there would be a step up in basis at death)
This is a terrible explanation of whole life. While 90% of it isnt effective, there are two maybe three MUTUAL insurance companies where a case could be made for it.
New York Life is #1 in the country ,they pay dividends (even though its not guarantee)for the past 170 years they have been paying dividends to policy holders, have a cash value, if become terminal have access to the cash last half of the year,also their is the disability rider and Chronic Care Rider. You pay few dollars for a whole life policy but its worth it at the end. Prepare today enjoy tomorrow. for more info http://www.newyorklife.com
Any good policies/companies recommended for term life insurance?
Everyone's situation is different. Just from personal experience: my grandparents bought very inexpensive premium-wise insurance on my mom at birth (in 1930s); when they died and she discovered policy, it was paid up and worth much more than ever paid in. I made the phone calls as company had changed hands many times – and my parents split the money with me. Worked out well for all. Alternatively, I have an autoimmune disorder – not very insurance but am single no kids. By buying small amount of whole insurance through company vetted by AAA – I have insurance no health questions (started after age 50 but before age 55), have cash value, if become terminal – can access one half in last year and still my niece gets the other half. Not bad for an otherwise uninsurable individual. TALK TO A FINANCIAL ADVISOR NOT SELLING A PRODUCT – IT IS WORTH $150-300 (or more depending on your needs). IT IS COMPLEX STUFF. I do think the $1/month my grandparents paid can't be beat! And AAA is great.
so if u pay the premium of the whole life policy, how much money get to the cash saving??
The problem with this video is that it makes a blanket statement that you pay on whole life your entire life.
Although that is true for many whole life policies, it doesn't have have to be that way.
There are whole life policies out there that you pay on for 10 years, 20 years or to a certain age and then you never pay on them again. They're called paid up policies, or you might hear them referred to as 10 pay life, 20 pay life, or life paid up at 72. Then there's what are called single premium whole life. In a single premium whole life you pay one premium and then your insured for the rest of your life.
Great to be able to hear it from a familiar voice.My son uses Khan Academy and Sal's videos have helped him through many a math problems.Now , today, he has helped me get an understanding of Life insurance! Thanks Sal!
Can only assume that Farhod Sulton is a whole life insurance salesman. As for "inaccuracies" regarding cash vs. death benefit, it's just a hypothetical situation — of course anyone watching these videos to speak to their own insurance provider for specifics. Excellent video.
another thing to consider from my experience is that investing the difference means there is risk involved, with whole life insurance you have certain guarantees that may be more suitable for risk-averse clients
i'd like to see a comparison of your buy term and invest the difference strategy versus an overfunded whole life or vul. Your strategy will not hold up past 5 years
7/7/15 topic of the day it is written in the book that (WHOLE LIFE) that
Whole life is often called (PERMANENT INSURANCE) because the maturity date is (BEYOND) the life (EXPECTANCY) of most individuals. However, a close look at the policy (COMPONENTS REVEALS) that a whole life policy actually consist of a (COMBINATION) of (SAVINGS ELEMENT) (THE ADVANCING CASH VALUE) and (DECREASING) amount of (NET) insurance (WHICH IS DIFFERENCE BETWEEN THE CASH VALUE AND THE FACE AMOUNT OF NET INSURANCE PROTECTION WOULD HAVE DECLINED (ZERO) so many names for cash value (cash value) is money from money you pay taken by insurance company which they invest and give you a small % of earning of your own money put in what they call "savings" or cash value why not invest it yourself and keep all profit not just portion.