Money Guy Show Do You Actually Need Term Life Insurance?
Dec 29, 2021
The discussion dives into whether to keep or let go of a term life insurance policy, weighing its benefits against financial milestones. It also explores how to navigate the complexities of personalized coverage, emphasizing the value of consulting unbiased financial professionals. There's a segment on opening IRAs for grandchildren, shedding light on custodial accounts and tax benefits. Additionally, the importance of teaching youth about personal finance in schools is highlighted, inspiring young people to take control of their financial futures.
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When To Keep Term Life Insurance
- Keep term life insurance until financial independence milestones are met, like kids out of college and debt-free status.
- Consider maintaining a low-cost term policy if it offers value and affordable premiums, even in retirement.
Term Insurance Conversion Option
- Check if your term life insurance can convert to permanent insurance to preserve insurability as you age.
- Use this conversion option as a backup if medical issues later prevent buying new coverage.
IRA Rules for Grandchildren
- To open an IRA for a grandchild, the child must have earned income and the account will be custodial.
- Consider a teachable savings moment and understand the tax and filing implications of custodial IRAs.
