Life Insurance 101 (WATCH THIS BEFORE YOU BUY)

After getting my own life insurance policy last year, I've been blown away by what a cool tax-free, wealth-building loophole it is. They don't call it "Rich Man's Roth IRA" for nothing! Financial education, people! That being said, life insurance can be confusing, and there's a lot of bad products/salespeople out there, so this video I share everything I know about life insurance and how to decide if it's a fit for you.

***ATTENTION: I have a new Instagram and TikTok handle @itsrosehan ***
That's my official account, and I will NEVER message you about investment schemes, so please be careful and block & report any scammers posing as me.

TIMESTAMPS
00:01:10 - What is life insurance?
00:06:40 - What's best for you... Term Life vs. Permanent Life?
00:12:00 - When is the best time to get life insurance?
00:16:25 - How to choose a GOOD life insurance policy

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***👇 BOOK A FREE CONSULTATION WITH MY TRUSTED INSURANCE AGENT 👇***
Get an assessment of your financial situation and learn more about how different policies work

SOME NAMES OF REPUTABLE *MUTUALLY-OWNED* INSURANCE COMPANIES
Northwestern Mutual, National Life, John Hancock, Mutual of Omaha, Minnesota Mutual, Nationwide

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***BOOKS I RECOMMEND 📚***

I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)

The Little Book of Common Sense Investing (Jack Bogle's classic advice on index funds)

InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)

Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)

Rich Dad Poor Dad (#1 selling personal finance book of all time... need I say more?)

Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)

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***MY FAVORITE MONEY TOOLS 🖤***

YNAB (I literally can't live without this budgeting app, so obsessed)

Wise (like Venmo but for international currencies - I use this app a LOT for my life in Mexico)

Ledger Nano S (crypto storage hardware wallet, because "Not Your Keys, Not Your Crypto"!):

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DISCLAIMERS & DISCLOSURES ❤

This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

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SAY HI ON SOCIAL! 👋🏼

[traefauntleroy]

Hi Rose,
Great Vid. Just a couple of things. 1. In an IUL policy, if you take a policy WITHDRAWAL from your Cash Value account, depending on the amount, that is a TAXABLE event. Therefore, to take advantage of life insurances' tax advantages pertaining to IRS rule 7702, ALWAYS take away from your Cash Value Account as a POLICY LOAN, not a withdrawal.

2. in an IUL, the money is NOT INVESTED directly into the STOCK MARKET. It is invested into INDEX OPTIONS that TRACK a market like the S&P 500, Hang Seng, Credit Suisse, etc.. VARIABLE LIFE Insurance products would be an insurance product that uses the separate account to INVEST DIRECTLY into the stock market. Hope this helps. 😁😁

[ErikStone]

Late bloomer here. I bought my policy after 40, so permanent insurance was way too expensive. I bought a term policy that was a third of the cost of permanent. My wife bought a permanent policy in her early 20s, so she's paying very little and getting so much more. Listen to Rose, kids. Jump on this ASAP!

[AdamS]

ALWAYS term life insurance, never whole life AKA permanent life insurance. It is not a tax advantaged account and will end up costing you money (source: I am a tax CPA). Much better to invest inyour money in a Roth or Traditional IRA. Or if you're at the cap on those, it would be better to invest with a brokerage account. NEVER pay to use your own money with a permanent life policy. Term life, yes recommend 100%.

[walterheisenberg]

My father worked for an insurance company and told me how badly people got scammed on whole life policies. Please buy term and invest the difference.

[joanmcmanus]

Good information, Rose. Here is a tip from my personal experience: Many people rely on the term insurance that they receive through their jobs. That's fine as long as you are employed. If you lose your job, you lose your insurance. At that point, if you have had health issues, you may find yourself to be uninsurable or the cost to be prohibitive. I recommend that you purchase life insurance (either whole life or term) OUTSIDE OF YOUR EMPLOYMENT SITUATION in your young healthy years.

[Cheecheeee]

I am a licensed agent and senior advisor in this industry. Rose is 100% correct. Having coverage and savings as an IUL is the smarter way to go. National Life is the best in this industry. Their living benefits is so invested and beneficial in the members, the policy holders. If anyone is interested please feel free to reach out. Our purpose is to teach and show people about these types of policies, not force anyone to purchase.

[harhccha]

Very informative and I definitely learned a lot.

So getting life insurance as an investment vehicle is worthwhile only after the following considerations:
401k company match
Max out Roth IRA
Max out HSA
Minimal to no debt
Stable Income
Reasonable nest egg

It'll probably be a while before I meet all of those but it's something I'll keep in mind.

[emailbecky]

Rose, I absolutely love your videos. They are so useful. I have been thinking about getting life insurance for a while now. I had no idea about the difference types of life insurance. I do not have or plan to have kids but do take care of my elderly mother, who is basically my dependent. This video has given me a lot to think about. Last year my sister passed and I was the beneficiary on her life insurance. With the money she left me, I will be able to realize my dream of owning a home as I am using the money for a down payment. I never thought about life insurance before that. But it's a great thing to have for a loved one. It was so generous of her and I'm so touched she wanted me to be taken care of. I thank you for your videos, and for all you do to help us learn about these important topics.

[sisds]

I didn’t know about the investment side of life insurance. Thank you Rose for sharing your knowledge with us.

[judithbuchanan]

I just love when Rose posts her videos. I look 👀 forward to Rose’s videos every Thursday💖.

[jluck]

That was a great explanation of insurance options Rose and how to prioritize it as an investment vehicle. Keep up the great videos!

[yokoikeda]

Hi Rose, this is a timely video for me! Thank you for covering this! Can you do a video how exactly to take loans (process, what to be careful of as to interests etc.) out of it, and what you would do with the loan to build your wealth. I love your down to earth and real person perspective, and relatable advices! Thank you!!

[howtoadultschool]

Hi Rose! Thanks for doing such a detailed breakdown of what permanent life insurance is. Would you consider doing a video directly comparing and contrasting term vs permanent with pro's and cons of each, and who the different policies are best for based on their financial information?

[mariquitademira]

You are so good at explaining all these different investment vehicles! I can't tell you how many videos I watched on IUL insurance because someone was trying to sell me on it but I still did not understand at all how it worked till I came across your video that has explained it the best! Thank you Rose!

[nmbwoix]

Seriously the best financial youtube account ive found thats straight to the point, explained in a way I understand and very helpful!

[kirklugg]

I really appreciate this video. You explain it extremely well. The term life insurance is affordable, but the permanent life insurance sounds really great too. I will take some information from your video and use in my decision making process about taking out an insurance policy. Thanks again for this great video. Great job, and well done.

[actnowordreamon]

I taught this would be a boring topic but you found a way to make it interesting. Good job

[lynnwalker]

Very interesting! Never knew you could use life insurance as an investment vehicle. Thank you again Rose!

[supasteven]

Thank you for this video! I’m currently researching what life insurance is and has no idea where to start but you summarized everything so well!!

[makeupmaven]

This is such an important topic people don't think about enough. My best friend's dad dropped dead of a heart attack at 46... while he was riding his bicycle, which he did daily. Thankfully, he had a very good life insurance policy that took care of my friend, her sister, and his wife (their step-mom). Also, while no one wants to think about dying, or their loved ones dying, anyone who has had to deal with those situations know death is EXPENSIVE. It's not just your burial, what your remains are kept in, but also the time and resources it takes to get rid of the belongings of someone who has passed on. Those all cost thousands of dollars. And the last kind thing you can do for your loved ones is not leave that financial burden on them when they're already grieving your loss.