I was asked by my pastor to offer my thoughts on life insurance to the people attending the Dave Ramsey Financial Peace University seminar at our church. Anyone who’s read my blogs knows that I am huge on leaving money in people’s pockets. Dave Ramsey is all about using any extra money to pay off debt and put toward retirement. Dave and I see eye to eye. Here is what I will be offering.

Life insurance tips


1.    Whole life insurance isn’t an investment and it isn’t a savings account. Whole life insurance is simply overpriced life insurance.

2.    Almost all people who depend on whole life to meet their life insurance needs are under-insured because they can’t afford an adequate amount of whole life.

3.    Whole life used to be the only way to buy permanent life insurance. Today it is the worst way to buy it.

4.    The average person’s life insurance needs are temporary. They are term insurance needs.

5.    Term insurance will meet the needs of 95% or more of normal working Americans. Term insurance is also the least expensive way to provide your family protection.

6.    Make sure your life insurance is a budgeted item and don’t let an agent change your budget. If it doesn’t fit in your budget, it won’t stay in force.

7.    Don’t over insure yourself. That is wasting money. To the extent that your budget allows, don’t under insure yourself.

8.    Always get more than one opinion as to the amount of insurance you need. Make sure whoever you are working with reduces the amount of insurance by using your assets (net worth).

9.    If you have health problems, choose an agent who is independent (represents a lot of companies), and who has experience in successfully finding affordable insurance for people with the same health problem.

10.                       Don’t buy life insurance from your from car or homeowner’s insurance agent.

 Bottom line. Get your life insurance advice from someone who cares about your financial peace more than their next vacation.