In a discussion with a person who promotes "good deals" on their FB page, we were discussing life insurance and which is a better thought. They had posted a link promoting Gerber Life insurance.
First of all, Gerber is a baby food manufacturer. Secondly, you shouldn't have insurance on a child (infant or non-income producing child) except for enough to bury the child should the unthinkable happen. It's not a way to replace income. The child doesn't PRODUCE an income. So, what is the insurance protecting against?
Even for those who are income producers or the odd child that may actually produce an income for their family, Gerber life insurance is a RIP OFF. I mean no offense. It's just a fact. Most healthy people should purchase 20 year level term for a FRACTION of the price of gerber's whole life policy. If a person HAS whole life, they should get their term in place before canceling the whole life / cash value insurance. The BEST deals to find insurance in this area is Zander Insurance...
If you're up for finding a deal... best price... you should consider looking into Zander Insurance... Again, I don't sell insurance. Nor do I make money off of insurance. If you'll notice from my FB profile (Goode Money) I do offer Dave Ramsey's Financial Peace Class for my church and community. But I don't sell insurance. In fact, I don't sell any financial product other than education.
You may want to consider looking into Dave Ramsey and see what he says about ways to save money. He actually has a video (about an hr long) somewhere on his site that are OUTSTANDING ways to save money... Ways that truly are Trifty Common Sense.
I suggest Zander simply because I know their reputation. I neither work for nor represent Zander in any fashion except that I like their company.
If this somehow offended you or other readers, consider something that really is a bargain other than whole life insurance... Just run a calculator and you can see that it's actually a rip off. The only people who believe in it are the people who sell it... I say again. I. DON'T. SELL. INSURANCE. So I profit nothing / lose nothing if you do or don't.
Example: Pulling a quote for me
35 year old male in NC
$500,000 policy for whole life is roughly $100-250/month
$500,000 policy of 20 year level term 24.06/month (actual quote from Zander Instant Quote)
The trick: invest the difference!
Do just the cursory calculation of $25 vs $100... investing $75/month into a good growth stock mutual fund which has averaged 12% (stock mkt avgs since the inception of the stock market) from age 35-70 (i.e. 35 years) is a total of $900 invested each year.
$75 invested monthly for 35 years yields $482,636.46
And this is not even "financially sophisticated" practices... This is park the money in a mutual fund. It's not even doing high end technical mumbo jumbo.
Now, let's look at the math from the high end!
Same 35 years... now investing $225/month into the same growth stock mutual fund totaling of $2,700 invested annually...
$225/mo invested monthly for $35 years yields: $1,447,909.39
If i'm half wrong, you're almost a millionaire... and no magic beans... and your HEIRS keep the money after you die...
What gerber doesn't tell you up front in bold letters: when you die... THEY keep the cash value savings of the policy. not your heirs.
I promise, I'm not trying to SPAM your posts. Just pointing out bad deals when I see them... especially when folks say they're actually GOOD deals. It's just not true.
Now, if you're uninsurable and all you HAVE is whole life... DON'T cancel it. Something's better than nothing. But If you can choose... the better deal by far is 20 year level term.
A great article: http://www.zanderins.com/term/term_vs_cash_value.pdf
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