The Dave Ramsey Plan

[Codie]

Lol good luck with your crossbow, high fence, pea gravel venture

Like I said earlier, to each his own. If you want to put money back for your kids, a Roth IRA would be much better(take that $80 in savings and invest. Will make more money) If you had 30 year term policy worth 6-10 times your annual salary, you would be at least 60 when it expires. Your kids should be on their own by then. If you did have debt, your wife would be covered if you pass. Unless your kids are cosigners, they will never take over your debt.

no my wife would NOT be covered if my policy ended at 60 and I passed at 61. I had customers who spent about 4yrs and no telling how much money battling their parents debt that they left for them. When you die, folks are going to make every effort to get their money paid to them, even if it means going to your kids and driving them nuts to get it.

I buy life insurance for what it is (life insurance) not an investment - If I wanted an investment to pass on to them then you are correct I could start a Roth for them, but I am not worried about handing them some big amount of money when they get out on their own, I just want them protected from worst case scenario of my death and their future families protected from their untimely death during the initial phases of the "real world" when they are trying to get their own life insurance/investment plans together for their family. I accomplish ALL of those things by paying a whopping $80/month extra to own whole life insurance, which is a VERY small price to pay for that kind of peice of mind in my opinion. In about 4yrs that extra $80 will turn into an extra $60 because my boys little whole life policies will be paid up by then.

[Jet Black]

Codie - you're either an insurance agent or you're getting ripped off bud. You can accomplish the same thing with a term policy at a fraction of the price.

[Codie]

Codie - you're either an insurance agent or you're getting ripped off bud. You can accomplish the same thing with a term policy at a fraction of the price.

I have been out of the insurance business for 2yrs - and you CAN'T gaurantee life insurance protection with term life insurance - you can stratagize a plan or combo of plans to give you the best chance but that is about it. If you like your term and it works for you then good deal I am more than willing to pay a LITTLE extra to KNOW that my family is protected no matter when I die or what my health does in the future because protection is why I am buying it in the first place, not as investment. I also have some term life insurance to cover the larger debts that I will have over the next 15yrs (my home, college costs) because those are debts that I know will end at a certain time and I am not willing to pay the extra $ for whole life to protect a debt that I KNOW has an end to it- At this point I obviously have no clue what kind of debt I am going to have at the age of 60yrs old long after my home and college are paid for. I may be under-insured or I may be over-insured, but at least I know it is there in the event that I do sell my home and buy a ranch and build a house at age 55. It is all about priorities and we are all going to have different priorities on what is important to us and our families.

Buying whole life based on it being an investment is where you start wasting money due to the much better investment options out there. I have life insurance to protect my family and investments to make/grow money and I don't mix the two. I place more value on the gaurantee that whole life provides my family than the $80/month that is cost me to pay for it. It really is that simple. I am not worried about being right/wrong because it works perfectly for me.