Why You Need 10x Of Your Income In Life Insurance

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[godsoloved]

I'm so glad he explained this. It makes so much sense. I got rid of my whole life $50+ a month life insurance and got term for the coverage I really needed for less than half of that.

[JAYCEE-xmdd]

Tip for those with health problems. Get multiple policies if needed with at lower amounts usually 200 k or less. They dont require examinations.

[aidancash]

My parents had this. But didn’t continue it when my dad retired because they have a million nest egg. They still have a small policy that will cover funeral.

[hridhaynatanasubramanian]

2:31 That sounded like a pizza order, except in the financial world

[juliettebrown]

For the first time in my life, thanks to this video, I finally understand how to determine the amount of insurance my family needs. Thanks, Dave!

[jjuniper]

Dave, I really wish you could have talked my late husband into this. :( What a struggle it's been.

[rajatgupta]

Should it be based on term (20 years) or age (upto 60 years or something similar). Thank you for clarifying on 10% part

[johnsantiago]

Does Dave mean net or gross yearly income that you multiply 10 to 12 ?

[ame]

I can't remember any section about life insurance in the Total Money Makeover book. Can anyone remind me of it? Greetings from France.

[PenusDrippings]

she forgot to tell him about her mortgage, 3 car, boat and toys monthly payments. lol

[jwardTLS]

It definitely matters what you make. I forget the specifics from my insurance guy but I've only got a few million in term because I make like 450k a year and they said your living expenses won't come anywhere close to that so we aren't going to allow you to get a 4.5 or 5 million dollar term policy. Maybe some companies are different and possibly because I'm self-employed, but all I can say is once your income hits a certain level over and above reasonable expectations for expenses, you can't just magically say "oh hey guys give me a bazillion dollars in insurance". It doesn't work that way

[Matthew-klxh]

I'm confused. He said to get 10 times so you can live off the interest of a 10% return. If you are investing that into the stock market though, how can you pull from it if you aren't 65+ yet? If its invested and you aren't retired you can't live off the interest right? Also does the insurance payout automatically go into a investment portfolio? The limits on roth and traditional IRA's would prevent you from investing the insurance payout wouldn't it? I appreciate anyone who can answer these questions for me. Thanks.

[nafeesulhaq]

Sounds like Pam halpert from the office

[robandrus]

A return of 10% is not realistic, not in today's low interest rate environment.

[a.s.b.]

I feel like I still don't understand why term is better when I could loose all of the money I invested after the term is over. What do I do once the term ends if the person is still alive? No one seems to talk about what the strategy is supposed to be when that happens. Advice?

[eb]

Still gotta pay the taxes at some point on the mutual funds. Whole life insurance can be your investment, your bank, you can pull from it straight or pull a loan from it tax free and do what you want with it. Not a rip off Dave.

[jackleips]

Functional but investing with expected returns of 10%?

[Sasha-bdyz]

Is there tax on inheritance and getting money from those insurance companies?

[kb]

Wouldn’t you want life insurance to pay the estate taxes?

[TheDsingh]

Where on earth are you getting 10% a year every year consistently? What kind of absurd blanket statement is this?