best

Life Insurance: Term vs. Permanent & How to Get the Best Rate

hello and welcome back to my channel I

made a video not too long ago about why

it is so important to get a will and

have an estate plan if you have anyone

in your life that you think is you know

a dependent that they will or do

currently depend on you financially if

you were to die they would be kind of in

some trouble definitely get a will

definitely make sure to check out that

video all about how to make will but

also you need something else you need

life insurance I remember so clearly

back when I started my podcast a few

years ago one of my first guests was pre

Banerjee and he's awesome he's a money

expert he's got a great YouTube channel

make sure to check that out but he also

wrote a great book called stop

overthinking your money and there's some

really great sections in that book that

go in-depth about life insurance and

after we had our interview he asked me

so do you have life insurance and at

that time I was married me and my

husband were living in an apartment we

didn't think we needed it because we

didn't really have like any assets or

much money and so I'm like no we don't

have it and he's like you need to get it

right now and so I kind of reread the

chapter in his book did a little bit

more research and realized it was

actually really stupid of us to not have

life insurance if I were to die my

husband would be in trouble if he were

to die I would be in trouble and so I

want to talk about life insurance and

really easy to understand terms so at

the end of this video you will know

whether you need it how to get it what

are the different types of life

insurance so you don't make the stupid

mistake that I did when I interviewed

Preet and looks like the pool okay so

before I get right into it first I want

to thank my sponsor for this video

policy me so policy me is a

toronto-based startup on a mission to

fully digitize the life insurance

process from advice to purchasing a

policy so just go to policy me comm to

check them out they can save you up to

50% on your

insurance and it'll only take a few

minutes and what's great about them is

they are an insurance brokerage so they

are all about just binding you the best

price and the best policy with the best

insurance provider personally I always

use an insurance broker for all of my

insurance needs I think it's great

number one you don't pay them they get

compensated by the insurance company so

you don't have to worry about not being

able to afford to work with a broker

number two their job is to find you the

best policy for the best price and also

make sure that you know what kind of

policy that you need they can guide you

through the process and as you can see

on their website typically they can get

you a policy for $33 per month whereas

you might be paying a bit more working

with the traditional broker and

definitely a lot more if you just go to

an insurance company and be like hey I

need insurance they're not gonna give

you their best rate so definitely look

into working with a broker not only that

you can talk to a real human on the

phone or 24/7 by email if you want some

specialty advice they also have a lot of

amazing guides and resources so you can

learn more specifically about life

insurance so you know what you're

getting yourself into and the best part

is they have a ton of great reviews from

customers not only on their website but

also Google reviews so make sure to

check those out as well

so after this video if you feel like yes

I need some life insurance make sure to

check out policy me it is a great way to

get the best price and the best policy

for your life insurance and you can do

it all online in just a few minutes okay

so let's get started with explaining

what the hell is life insurance well

you're probably familiar with other

types of insurance like home insurance

or auto insurance well it's it's kind of

the same thing life insurance is a means

to protect your loved ones from calamity

basically it means that if you die which

I mean we all die at some point in our

life it's like it just happens that they

will get a payout from your life

insurance policy that they can then use

and also the payout is completely

tax-free very important to know but they

will get this payout after you die so

they can pay for important things like

your mortgage your bills

maybe your funeral costs anything that

normally they would have depended on you

and your income to help provide so I

think there's a lot of kind of

misconceptions probably from movies and

stuff about life insurance policies and

it's basically a way that you're just

waiting for someone to die and then you

get rich that is not the point of life

insurance the point of life insurance is

to protect your loved ones so if you die

that they won't have to sell the house

because they can no longer afford their

mortgage payments or they'll have to

move in with you know some relatives

because they can't afford their

lifestyle without you so it really is

the main way to protect your loved ones

if you do pass away next thing is who

needs life insurance not everyone

actually so if you were single and do

not have any dependents if no one

depends on you for any kind of financial

help you don't need life insurance

you're good definitely look into getting

you know power of attorney and maybe

even a will cuz you probably do have

some assets but you don't need life

insurance now if you do have dependents

and again that's you know children a

partner relatives parents grandparents

anyone that if you passed away they

would be in some financial hot water

because they can't afford their

lifestyle without your income then you

definitely need life insurance now even

if you do have dependents that actually

doesn't mean that you do 100% need life

insurance maybe you're in the category

of you already have enough savings or

investments or assets that if you did

die they would be able to cash those in

and continue their lifestyle or pay off

the mortgage or whatever so it really

depends on if you were to pass away

today

would they be in financial hot water or

do you have enough assets that they

would actually be okay on their own so

those are kind of the different ways you

can determine whether you need life

insurance or not so how does life

insurance work then so you have a policy

you pay monthly premiums and if you do

die then your beneficiaries that you've

named in your policy get a tax-free

payout of whatever is in their policy so

they can use that payout for whatever

they want but most likely they will use

it to maintain their lifestyle pay off

debt put kids through

College whatever the case now let's talk

about different types of insurance so

really there's two main types there's

term life insurance and permanent life

insurance term is I'd say probably the

most popular in my opinion it is

probably the best type of insurance that

is what I personally have so that's my

personal opinion obviously but basically

term life insurance is very simple it's

also very affordable too so it's great

for your you know young couples or young

families but basically you choose a

specific life insurance term so that

could be ten or twenty or thirty years

you pay that premium monthly for ten or

twenty or thirty years for the length of

the policy and if you die within that

term then your beneficiaries get your

payout now obviously once that term ends

your policy expires you don't get any

money back you just pay into it and if

you want more life insurance then you

have to get another term or you can get

some permanent life insurance after that

but really the goal is not to always be

covered by life insurance it's to have

it for that period of life where you

just don't have enough assets or

investments or money in the bank to

provide for your loved ones if you were

to die so really the goal is if you you

know have a 20-year term after that term

expires you'll have enough assets that

they can sell off if you die and they

will be totally you know financially

prepared and okay now permanent life

insurance is obviously permanent there

is no term it never expires like term

life insurance does however it is very

expensive

I'm talking like ten to twenty times

more expensive than term life insurance

but the thing is obviously you kind of

get more for what you're paying for so

it is more expensive however your

beneficiaries will always get a pay out

if you die because again your policy

doesn't expire for as long as you

continue to pay your premiums so now I

want to talk about rape specifically

because I kind of talked a little bit

about how term life is you know way more

affordable permanent life kind of

expensive now there's lots of different

factors that come into play to determine

you were specific great because

everyone's not gonna get the same right

they're all dependent on a lot of

different factors now first of course is

how much coverage you want do you want a

million-dollar payout or a $500,000

payout

those will definitely give you different

rates obviously the more coverage you

want to get the more expensive your

policy will be next is what kind of

insurance do you want do you want term

do you want permanent deciding on which

one you want will obviously determine

how much you're gonna be paying on the

monthly next what's your current age if

you're younger you will get a cheaper

rate than if you were older because

there's a less likelihood of you dying

when you're young and a higher

likelihood of you dying if you're older

next and this probably isn't a shocker

are you a smoker for every kind of

insurance I feel like like health

insurance life insurance so many other

types of insurance this is a really big

factor so if you're a smoker you're

going to be paying more for your policy

if you're not you can save some money

next is your overall health status so

obviously the healthier you are the more

money you will save if you know that

you're not super healthy and you really

need to focus on your diet or work out

more

whatever the case well it's definitely

gonna cost you more when it comes to

paying for life insurance next is are

you a good driver your driving record

actually determines how much you will

pay if you're a safe driver then

obviously that will be like hey you're

probably not gonna die in a car crash if

you're a driver that has had lots of

accidents or gets lots of tickets it's

gonna make your policy more expensive

because the insurance company will kind

of determine well there's a higher

likelihood that you may get into a car

crash and die and we will have to pay

out your life insurance policies so

we're gonna charge you more for that and

lastly what are your hobbies not like

reading or going for a run do you like

extreme sports if you're into I don't

know bungee jumping or a hang gliding

well that is going to make your

insurance policy so much more expensive

because hey those are dangerous those

are very risky things to do and you may

die so if you were really into that you

know you do you but it will make your

insurance policy more

so before I wrap things up I want to

show you one the helpful tool that I

think you'll like this will help you

kind of get a better understanding of

like how much will you possibly pay if

you wanted to go with a term life

insurance policy

I personally pay about thirty bucks a

month but it may be different for you so

I want to show you this helpful

calculator that you could try out for

yourself

alright so if you want to test out this

cool calculator just go to the policy me

comm on the homepage go to skip the

advice and jump straight to quotes link

and you get this free calculator you can

play with so as an example I'm gonna

blanch in my birthday information June

4th 1986 female I'm a nonsmoker and I

need $500,000 as you can see as you play

around with like the dials it

immediately kind of updates so you get a

sense of like oh okay I mean you can get

a 10 million dollar policy and as you

can see very expensive but if you're to

just do something like a $500,000 policy

for a 10-year term it's only about 17

dollars a month except for Canada

Protection Plan which is very expensive

20 years it's about ten dollars more if

I were a smoker we just doubled in price

so that's expensive if I was a male

smoker pricee nonsmoker a bit less as

you can see and this is true females

compared to males women they they're

cheaper when it comes to rates when me

and my husband both got rates because we

have identical policies both non-smokers

he's only a year older than me his rate

is more expensive because he's a man the

system one of the factors that come into

play so check this calculator out have

some fun with it and get a sense of how

much you potentially will be paying in

terms of life insurance and that is it

those are the most important things when

it comes to life insurance of course do

your own due diligence after hopefully

this is inspired you to look more into

life insurance if you currently don't

have it also make sure to get a well

those two come together get a will get

life insurance skip

those things so you can protect yourself

and your loved ones and you know just be

a smart person really if you want to

have a fully functioning financial plan

it's not just about having a budget and

tracking your spending and investing it

really is so so important to have life

insurance if you need it and have it

well if you need it too thank you so

much for watching a big thank you also

to policy me for sponsoring this video

make sure to check them out I'm gonna

link to them in the description I am

such a big I don't know advocate I don't

know but I am such a big fan of

basically using an insurance broker for

whenever you're gonna look for any type

of insurance don't ever go directly to

an insurance provider because they

probably will not give you the best

quote and it's probably expensive and

also working with insurance broker you

don't pay them they get paid by the

insurance provider if you move forward

with one of their quotes so it's just

kind of cheaper and smarter and they

will give you a bunch of options and you

know what why not that is what I did I

went through Berger to get my insurance

policy so why not try out for yourself

so that's all I gotta say on that

anyways thank you so much for watching

let me know if you have any questions in

the comments if you like this video make

sure to like it if you haven't already

subscribed subscribe to my channel I

have so many more exciting videos in the

queue and I can't wait to share them

with you but thanks again for watching

I'm gonna see you very soon in my next

video