Term Vs. Whole Life Insurance (Life Insurance Explained)

In this video I will breakdown Term Life Insurance vs. Whole Life Insurance, to give you an idea of which is best for you.

Life insurance is one of those necessary things in life, because life happens! It's better to have life insurance and not need it, than need it and not have it.

The fact is, we all eventually need life insurance and this video will hopefully help you decide which is best for you.

Term life insurance provides coverage for a specific amount of time (usually 20-30 yrs). If you or your spouse passes away during this time, your beneficiaries will receive a payout from the policy.

Term life is much more affordable than whole life. Typically this works out to be $7 per month in 20 yr term, vs $100 with whole life cash value.

Term life has no cash value until the death occurs, so it’s not worth anything until you need it, which is fine.

Whole life is a form of permanent life insurance with 3 components:
1. Premiums
2. Death Benefits
3. Cash Value Accumulation (savings aspect)

When you pay your premium a portion is applied to the death benefit and cash value.

The first 5-10 years a majority is applied to the death benefits (cost of insurance) along with fees and commissions.

After this, the cash value will receive a great portion of the premium
Beneficiaries are only entitled to receive the death benefit portion of the policy when you die!!

You have no choice in how the life insurance company applies the premium you pay.

You can cash in or surrender your policy at any time to get your money out, but you lose the insurance!

Instrumental Produced By Chuki:

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My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

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[ChristopherAbelman]

Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $800K in the stock market, experiencing fluctuations without substantial gains.

[rexiiforsure]

I’m glad my father had life insurance. He died in 1965, and because of it my mother had enough to live on until she died in 2009, when she was 94

[koreanbeauty]

I'm 35 and just recently told my husband (41) to look into ins. After watching this my mind is Blown!!! Thank you for posting this!!!

[MARTINADBA]

570 dislike came from whole life insurance agents lol

[stjepanhauser]

During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?

[DanielIles]

MAN, glad when you said "sponsored video" you didn't follow it up with a life insurance company pitch 😂


Do your thing man, make that ad revenue money!!

[QuietBoyMusik]

Yo... this is the first commercial/sponsored ad from a YouTuber that I actually literally enjoyed.

[christinegakuya]

Thank you so much! I've listened to a few videos on this topic and I was starting to think am dumb for not understanding but after your video, it all became clear. Am subscribed!

[ChrisInvests]

Many people make the mistake of not taking out enough of a policy to replace their income !

[AlexWinkler]

I love how you're geeking out during this video. It's all a bit savage

[surajgurung]

I took a class for life insurance to be primerica agent. Class was so fast and I couldn’t catch all so search for it and found you. Thank you for making it clear in 10 mins.

[Kanakaoluna]

I went with 35years term with living benefits at 38$ a month & 20$ a month for 200k Accidental D&D. I’m turning 27 and I got it when I was 25. The way I look at it is JUST IN CASE since I have a daughter and son to worry about.

[ram]

From where I’m from our whole life plans are limited pay (which means you pay for a limited number of years 10, 15, 20) and still get covered for life compared to a term in which yes you do choose your term (10, 20 years) however it doesn’t cover u for life. In which is akin to renting a house vs buying a house. Now worse case scenario is when ur term plans comes to end (your renewal obviously sky rockets ) and the very worst..is you don’t renew and something happens..

So i always believe its best to have both to complement each other ...my humble opinion that is. Cheers

[vincea]

Whole life agents disliking and commenting on how bad whole life was presented here

[claudenkurunziza]

Thank you so much for your videos, I failed my LifeInsurance test so many times but once I sow your videos I passed. Thank you for your help.

[tonii]

My husband and I are closing on a home soon and we'll definitely check out the simply safe recommendation. Thanks

[stockswatchdog]

Thank you so much. I was about to take whole life insurance, as an investment vehicle. After this video, I have second thoughts.

[Glencove]

Wow, wish I found you a long time ago! Thank you for sharing, I will be sure to share with my children.

[mommy_me_life]

Very nice general yet informative content letting us know overall how term and whole life insurance works...thank you🤗💚

[sweetpea_socal.]

A coworker sells insurance as his side hustle. He likes to talk a good game. After watching your video I am more informed. THANK YOU!