Day 36 OR Day 37

We have a “term-life” insurance bias. Meaning that we encourage students to purchase a 30-50 year term life policy while in their very-early twenties. This bias is based solely on the concept of becoming “self-insured,” meaning that the student will have sufficient savings/investments to cover expenses (death/no-debt, in this case) when they are retired (60-death).

However, there are valid exceptions to this advice. For instance, if you have a known hereditary issue that manifests in your family at 60+ years old then you would want a whole-life annuity. While annuities aren’t part of the test, they may be something the kids should at least be exposed too. An annuity is a type of insurance that pays for itself after reaching maturity. Also, if the student doesn’t believe that they will be able to be self-insured (learning disability, etc. that would impact lifelong earnings) then the whole-life annuity will be a better choice.

Quiz 5.5

06 Insurance
1. Risk
2. Insurance
3. Policy
4. Premium
5. Deductible
6. Automobile Insurance
7. Liability
8. Comprehensive
9. Rates
10. Health Insurance
11. Life Insurance
12. Homeowners Insurance
13. Renters Insurance
Insurance Questions
Discussion 5.3 - Insurance
(Journal Questions 1-3) Insurance-Options