Episode 18: Straight Talk on Insurance, Part 2

Continuing where episode 17 left off, Dawn describes the basics you need to know about personal insurance coverage such as health, disability, life, and long-term care.

3 responses to “Episode 18: Straight Talk on Insurance, Part 2

  1. I’ve really been enjoying listening to your podcast – thanks for all of the insights! I know you didn’t address this, but can you offer up your thoughts on whole life insurance as well? I’m 35, and I currently have a whole life policy (to cover funeral expenses, etc.) as well as a 30 year term policy. Just wondering whether the whole life policy wasn’t the best idea – especially since the annual premium is pretty high. Also, any thoughts on purchasing a life insurance policy for a baby? I’ve been considering doing this to lock in a good rate and protect my son’s insurability, but I’m assuming there are much better ways to invest the money. Any thoughts would be much appreciated – thanks!

    1. Hi Jenn! Thanks for your support! I wrote a blog post that included some info on insuring children. You can find it at https://simplemoneypro.com/blog/3-times-dont-need-life-insurance/ but the short answer is that I don’t recommend it. If it makes you feel happy and secure to buy it, then go ahead, but my opinion is that it is a lousy investment. I’d probably start funding a 529 College Savings plan before I’d buy insurance on a baby. As for whole life, in the corresponding blog post to this podcast I wrote a tiny amount about that: https://simplemoneypro.com/blog/insurance-simplified-income-part-five-six-part-series/. In general, especially for younger people, I recommend term only – you get more bang for the buck. In other words, you get far more death benefit for less premium. Hope this helps! ~Dawn

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