How do I get Life Insurance

How do I get Life insurance?, this question can be asked by many people. Most of the time it’s asked perhaps by a newlywed, some couple who just had their firstborn, or even someone who wants to start saving for their long term goals. Undoubtedly having life insurance is needed in case of the absence of the breadwinner so that the spouse as well as their kids can continue their lives and won’t have to worry financially.

Once you realize that you do have a need for life insurance the next step is to find a life insurance agent a.k.a financial advisor. The reason I mention that Life insurance agent can also be known as a financial advisor is because there are two types of life insurance: term and permanent.

Term insurance is the death benefit that is covered at a fixed rate for a set period of time (example 10, 20, 30 years) and during that duration if the breadwinner happen to die, then the beneficiary will be receiving a lump sum of money. I’ve mentioned multiple times in my blog that mainstream advisors such as Suze Orman and Dave Ramsey believe that this term insurance is the only vehicle needed.

Permanent insurance is used because the death benefit can covered for the rest of the insureds’ life but more importantly, it’s mainly used because people utilize permanent insurance as a way of building cash value for their long term goals such as kids college tuition, buying house, or even saving for retirement. Personally I am huge believer in permanent insurance, especially Universal Life policy because I understand what this policy will do for my future. Not only do I advise this product but I do own it myself because I don’t believe in advising something I don’t believe. I will have a video soon of introducing my own ING Universal Life policy and I will break it down how my illustration will cater towards my long term goals.

VIDEO COMING OUT SOON!

Understanding the value of your youth

When you go to Walmart, the first person we see is a senior citizen greeting us. Although some greeters work for enjoyment, most are there because they haven’t planned for their retirement. Procrastination is your enemy!

Earlier you start = more years = more $$$

Interesting fact: 1 in every 4 babyboomers have no money set for retirement. Also 3 in every 4 babyboomers have less than $100k saved for retirement.

Sorry Dave Ramsey but one size doesn’t fit all

Hello, my name is Nick Har and I am an independent financial advisor for ING. After watching this clip from Dave Ramsey and his reason to get only term insurance, it really infuriates me how much a lazy, lethargic person this guy is. It’s amazing how many people listen to this garbage. Can you believe this guy?

His reason for getting only term insurance, he quotes, “let say I’m talking to a 32 year old who has a 4 year and a 2 year old. Let’s visit him 20 years from now, when he’s 20 year level term that I recommend expires. That would make him 52, he would have a 24 year old and a 22 year old. They should, hypothetically, both he out of college, both be grown, gone, out of the picture, no longer a liability.”

How many people out there do you know who are 24 years old, or even lets say 27 years old who are financially independent? Realistically I know quite a bit of people who are still dependent, trying to pursue grad school, and honestly the new trend for people is to stay dependent for a longer period of time..

He also mentions that when he is 52 years he should have about $700k in his 401k if they were to contribute 15% into their 401k!! Are you freaking kidding me! Mutual funds don’t always go up year after year Mr. Ramsey. We have something called recession that occurs every 8 to 10 years.

Dave Ramsey views and financial advice is a one size fits all mentality. What this means is that if you don’t have a 401k at your job, then sorry Dave Ramsey won’t help you out. If you have kids who are still staying at home and they are in their mid 20s then sorry Dave Ramsey won’t help you out. If you don’t have 15 year fixed mortgage then sorry Dave Ramsey won’t help you out! If I want to listen to a financial advisor, I would want someone who can give me advice based on my own personal situation rather than unrealistic hypothetical scenerios.