TransWorld

Do you get compensation of any sort from them?

sailingfun

Whole life insurance is the second biggest scam in the US after annuities. The upfront costs are so huge that it’s almost impossible not to be better off buying term and investing the difference. By the time you approach retirement age as a pilot you can drop the term since you should be self insured at that point.

SmarterOlive

Interesting you think that, but then again, life insurance isn't for everyone. Having done some extensive research, I discovered that the upfront costs are the price of the insurance that is intended to last until you die - whenever that is. The insurance company hopefully takes that money and invests it so it's grown for when your beneficiaries are expecting a pay out.

Life insurance is not just a want or a need, but can be a tool in financial planning. Thankfully, we are not made the same and we don't all care about the same things, so planning is expected to be different for each pilot.

sailingfun

Most financial advisors would disagree with you unless of course they sell annuities and whole life insurance. If you went to a financial advisor and he told you his fee for money under management was 6% plus per year you would run. Hide that 6% in a 50 page impossible to read document and people snap them up!

Smooth at FL450

could that financial advisor take your money and offer you an equivalent death benefit the very next day? My understanding is that the COI is high when the benefit is potentially immediate AND guaranteed to pay out. Term is just a bet they hope you lose...

Swagabond

Whole life has its uses but in most cases term life is best. I think of term life insurance protection until you can "self-insure". Most people protect their vehicles, houses, phones, and even that nice 70" TV. Why not your family's life? This is one of the few times you can write a blank check (up to your disposable income) for your family and generations to come (using simple beneficiaries, a will, and/or trust). Don't understate how much your family needs to replace you and their way of life.

Protect your assets with term life insurance until you are able to save enough to "self-insure". What I mean by that is around ages 70-100, term life premiums become ridiculous. However, at that time, you should have a few million saved up so you can then drop the life insurance and your investments become your safety net.

As a financial planner & advisor, annuity seller, and life insurance agent; my go-to is term life insurance for the maximum term combined with a respectable savings & investments plan to meet the client's needs for their family and future desires. Everything is a piece of the pie and has its place (life insurance, savings, investments, health insurance, umbrella insurance, wills, advanced directives, etc).

Lots of resources out there. Investopedia. Nerd Wallet. Your local state insurance regulator. Etc. There are acceptable standards for fees, insurance, advice, etc. Shoot me a PM if you need a BS detector for something you are interested in.