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hey how are you in this video I'm going
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to talk about the two major types of
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life insurance policies that exist uh
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hopefully educate you on how the
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products work and give you a little more
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ammo if you're out there selling these
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policies uh that can give you those
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extra leg up when you're you know in the
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middle of closing a deal so let's dive
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into it
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[Music]
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all right so as I mentioned there are
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two major types of life insurance
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policies that exist may you may or may
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not be aware of how these work so I'll
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touch on them and how they work briefly
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uh so first and foremost there is term
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life insurance policy it's one of the
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most basic types of life insurance
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policy and it is exactly what it sounds
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like it is for a term a certain period
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of time usually in the blocks of 10 20
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or 30 years is how we usually see them
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and a certain death benefit alongside
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that so it would let's just say for
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example a million dooll term uh 20-year
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term life insurance policy runs Somebody
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Like Me Maybe 55 bucks a month um
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somebody my age and my health it goes
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based on height weight uh your current
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health and if you smoke those are kind
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of the major factors that go into life
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insurance across the board but a 20-year
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term $1 million policy for someone like
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me is maybe 55 bucks a month this is
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just arbitrary numbers I'm just making
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up the other major type of life
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insurance policy on the flip side is a
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whole life insurance policy it is also
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known as a permanent life insurance
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policy unlike the term the permanent
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policy sticks with you for the remainder
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of your life whole life uh as long as
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you keep it active and continue paying
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your premiums so there are a couple
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major differences between the two
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obviously the term Runs Out at a certain
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period of time after 20 years if you
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live TW 20 years in one day your policy
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expires and there is no longer that
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million dollars in coverage the whole
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life insurance policy as long as you
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keep paying the premium and keep it
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active for the remainder of your life
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will stay active so two major
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differences term expires permanent
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policy does not expire it sticks with
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you
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forever um another major difference is
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the term life insurance policy is
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usually pretty cheap um like I said
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let's just say 55 bucks a month the
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whole life insurance policy because it
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does not expire it will run you a little
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bit more more like something like 200
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bucks a month for someone like me for a
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whole life insurance policy for a
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million bucks um that those are kind of
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like I said arbitrary numbers um and I
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will touch a couple more details here
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the differences between the two a lot of
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people like to look at these different
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types of policies as if you're buying
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and renting a home so the term life
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insurance policy you are renting ing the
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coverage for that 20 years the whole
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life you're buying that policy for the
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remainder of your life and it also
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builds what's called cash value so the
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policy not only is something you're
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paying into for life insurance but it
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actually acts as a bit of a supplemental
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retirement plan and also savings account
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which some people like to look at it as
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um so you're paying your premium don't
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be mistaken you are paying for life
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insurance but some of that money is
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actually being saved up and accumulated
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and it actually grows with some interest
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year after year so after let's just say
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5 10 20 years of paying your 200 bucks
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in premium you let's just say accumulate
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40 50 $60,000 in cash value which you
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can actually borrow from the policy
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tax-free that is one of the beautiful uh
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aspects of life insurance and whole life
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insurance is that you can actually take
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use the money while you're still alive
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and borrow from it completely taxfree in
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the form of a loan the life insurance
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company gives it to you in the form of a
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loan at a very small interest rate so
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these are one of the secrets to life
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insurance where you hear even like Drake
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the artist is it talks about in his
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songs where he's talking about whole
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life insurance and how it's a great
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thing and um there's some real benefits
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to it it's not you know super widely
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known knowledge but that's why I'm
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making this video um so the downside of
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the term policy is that you're just
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paying the premiums paying the premiums
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paying the premiums if you die after you
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know if you die within that 20-year term
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boom somebody gets paid out a million
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dollars your beneficiary gets tax free
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$1 million which is amazing but if you
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live one day past that 20 years nobody
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gets anything and you just spent 20
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years of Premium every single year 50
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bucks a month times 12 that's whatever
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$600 times 20 years that's um I don't
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know what am I am I doing my math right
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it's like shoot I can't do math right
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now it's like $112,000 whatever um
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anyways the whole life insurance that's
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one of the major benefits um it and so
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term life insurance also has the ability
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to convert into a whole life insurance
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policy some companies get you five to
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seven years to decide hey I changed my
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mind I want a whole life policy let me
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convert my term into a whole life which
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is a great little thing to have um but
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those are kind of the biggest things one
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of the I'm a huge believer in life
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insurance especially if you are a family
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person if you're you know you have some
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kids if you have if you have kids and
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and a wife or husband uh and you have a
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little bit of debt on the home let's
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just say you have a mortgage of
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$500,000 a great inexpensive way to go
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is a term life insurance Poli policy for
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10 or 20 years let's say you have 20
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years left on the mortgage for 500,000
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get yourself a small policy just at the
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very minimum you don't want to leave the
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family with some debt um the whole life
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insurance if you're young I highly
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recommend it the cheapest time to buy
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life insurance is today um or yesterday
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really because the younger you are the
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the better rating you're going to get
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it's all based on like I said rate uh
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I'm sorry age uh your height your weight
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um and your you know physical health and
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if you're smoking at at all that's a big
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factor too if you do smoke you will be
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rated at a much higher rate so um life
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insurance if you have it business owners
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super super important to have you know
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life insurance a lot of people will say
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uh don't worry you know it's all good
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Chris I got it through the through
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through work work has a life insurance
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policy for me I always say Hey you know
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Mike that's that's awesome I'm that's
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great that they have something for you
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even in the first place and I'm I'm
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happy you believe in the life insurance
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as well would you ever consider consider
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getting something that you own because
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your company policy they they own that
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policy you don't actually own that life
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insurance policy um if you let's just
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say switch jobs or one day get laid off
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or something happens where you change uh
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careers you no longer have life
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insurance and you will have to
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re-qualify at a higher age you know more
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expensive rate because you're going to
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be older and God forbid you have a
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little bit of diabetes or something and
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you're completely ineligible and you
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don't qualify for life insurance at all
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so uh best thing to do is lock in life
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insurance at a younger age uh today or
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yesterday if possible uh and get the
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best rate um I prefer whole life you
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could put a little extra money into it
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every month it grows accumulates taxfree
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and you can borrow and use it that's a
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great little um supplemental retirement
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plan and also protects your loved ones
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in case something does happen to you so
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that's kind of just a breakdown of the
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two different types term versus whole
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life uh and everybody's scenario is a
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little bit different so make sure you
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understand what the needs are of your
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customer and um you know which one truly
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makes sense for their situation uh
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hopefully that does help you if it does
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give us a thumbs up give us a like uh
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really appreciate it share this with
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somebody who wants to understand how
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life insurance works and also check us
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out on Instagram at Adelphia insurance
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and at Chris the insurance guy to see
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some more of the behind the-scenes stuff
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uh of the office and also my life uh
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what I'm doing in and out of the office
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to keep these videos going I really
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appreciate you guys I appreciate all the
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comments um they're really what keeps me
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going and uh the positive feedback that
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people are getting some value from this
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so hopefully you got some value from
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this one and get out there sell life
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insurance it's one of the most important
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products that we can sell as insurance
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agents um and do your job ask the right
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questions help people and um lead with
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integrity and uh I think good things
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will come to you if you help enough
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other people get what they want
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eventually you will get what you want
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I'm a big believer in that and that's
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all I got hopefully this helps see you
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at the top see you guys soon good luck
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peace
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[Music]
