Life Insurance Explained - What Is Life Insurance?

*Minority Mindset is a paid partner with Policygenius. If you use them, we will get compensated but there's no additional cost to you

What is life insurance - life insurance is a financial instrument to protect your family against a tragedy. But not all life insurance is the same, in this video we explain what life insurance is

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Life Insurance Explained - What Is Life Insurance?
0:15 - Why everyone needs life insurance even though many of you won’t need it in the near future by comparing life insurance to car insurance
2:15 - Life insurance is insurance on your life but all life insurance is not good
3:20 - When you don’t need life insurance
4:29 - Understanding Term Life Insurance
4:50 - The cost of whole life insurance vs term life insurance
6:50 - Why is whole life insurance so much more expensive than term life insurance
7:23 - How whole life insurance works
9:24 - Why term life insurance can be a better option for the majority of Americans
9:50 - How the price of your life insurance is affected

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Video host: Jaspreet Singh

DISCLAIMER: This description may contain links from our affiliates, sponsors, and partners. If you use these products, we will get compensated - but there's no additional cost to you.

DISCLAIMER CONT'D: I'm just a random guy on YouTube so do your own research! Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in these videos. This video, the topics discussed, and ideas presented are Jaspreet's opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

[CryptoDad]

Im just glad that i purchased $1mil Life insurance for $45 a month for my wife.
She also purchased $500k under my name for $40 a month, so were blessed to have this protection in case of anything!

[rahemegrant]

My wife works for an insurance company called Primerica and this is exactly what they teach people. They only sell term life insurance and if they meet people that already have whole life insurance they show them how to pay less for their coverage with a term policy and invest the difference for them but not with a cash value so they essentially separate the 2 and when the client dies the family gets both the death benefit and the investment. Everything you said about whole life is 100% true.

[Wang.Yi-Kai]

Morning! I have a 20-year term insurance. So I can have enough time to pay off my mortgage and save/invest enough money this period of time. After that, I think my saving/invest should be more than enough to protect my family.

[debtmenot]

This was such an awesome video! I used to work for a financial advisor that sold whole life insurance to her clients and I couldn't understand why they were so impressed by the features. I used to pull up the annual reports before each client meeting and I agree, the annual returns are super low for the premiums that are paid. Needless to say that I no longer work there; I couldn't justify selling these products to novice investors.

[ekamsandhu]

Thanks for this Jaspreet. I've been thinking of getting life insurance a lot lately after my cousin died in a motorcycle crash at 28. We are very fortunate he had life insurance as he paid the majority of the bills in my aunt's household.

[Angela-necy]

I enjoy watching Dave Ramsey first, then Minority Mindset. They disagree on various strategies but I feel much more informed to make a decision that works best for me. And when they DO agree (as they do on Whole Life insurance being a horrible idea) it's pure gold.

[Holleylifestyle]

This was amazing. I’m shopping now at 38 and this helped a lot. Especially about whole life.

[webeducation]

Really liking this 101 video. Checking to see if there are others.

[wealthupgrade]

Awesome video! I should add this in my upcoming VIDS. ☺️

[RavBarring]

When we came to the States, we used our whole life policies to fund the migration for our entire family. This is when interest rates were high in the late 80’s and 90’s. My mum said those policies accrued substantially to help pay off one of our homes in the UK.

[livefreewithcalebd]

This is another reminder I need to get life insurance lol.

[swifttrends]

Very helpful content! Gotta add this in my upcoming VIDS 👆

[spiritualityminfulness]

Hi Jaspreet, thanks for this info. Can you please talk about the (flexWealth Advantage) flexible premium adjustable death benefit life insurance for seniors over 75 years of age? I am curious to know how that works and if it is worth getting at that age.

[jibjabby]

As a bias insurance broker: there are other options for whole life insurance for example limited pay contracts which give you lifetime coverage for 8, 10, 20 years of payments.
Paid up additions options are there to combine the cash value in to the life insurance benefit at death.

Yes in a lot of cases term is the right option but talk to an advisor in your local area to understand all your option and the pros and cons based on your particular circumstances.

I would keep typing and explaining but there are too many nuances to address.

[keritans]

Top 15! 🔥🔥 I was a subscriber when you made the channel about 2 years ago. Happy to see the growth and everyone finally catching on to the gems you've been dropping for years.

Now, to comment on the topic of the vid, I have a dividend paying whole life policy at 4%.

[Je.rone_]

I haven't a spouse or children/dependents the likelihood of either in the future is low so I'll probably "self insure" so to speak

[helpmegetksubswithvideop]

You’re loved very much. You’re wonderful. Have a lovely day.

[LovelyJ]

As a licensed distributor for insurance, I’m willing to help anyone who reaches out and is interested in setting up a plan. My philosophy is buy term and invest the difference in a mutual fund/IRA and more.

[Mylove_Mkm]

Brown ambition led me here. Thank you 🤗

[ericumbarger]

I agree term insurance is a better option than whole life but unfortunately he never mentioned IUL. Which is far better than whole life when it comes to ROR in the cash value aspect and has market protection with a flexible investment designed for a clients financial goals.
Hmm I wonder why🤔