Matt Ruttenberg is a Financial Entrepreneur, CMO & Shareholder of Life, Inc. and founder of SureLI Insurance, an independent, digital insurance site that specializes in providing Life Insurance to those pursuing Financial Independence. On this episode of CFO at Home, Matt and Vince discuss the differences between Term and Permanent Life Insurance, factors to consider when determining how much Life Insurance you need, and more.
Key Takeaways
- Term Life Insurance - Renting somebody else's deeper pockets until you can fill your own (reach financial independence)
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- Younger people can often only afford term insurance due to other financial priorities
- Pricing based on the probability that policy holders die during the term of the policy; statistically most policyholders do not die during the policy term, which keeps prices low
- Permanent Life Insurance - Lifetime insurance as long as you continue to pay the Premiums and the health of the policy maintains
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- Pricing is based on when you die, which makes it more expensive than TermÂ
- Choice between Term and Permanent determined by specific goals, stage of life, etc.
- Employer provided Insurance is typically only available as long as you're with that employer
- The amount of insurance you need is dependent on a host of personal factors such as:
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- In the event of your death while covered:
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- Do you want your spouse to have to get a second job?
- Do you want your family to perhaps have to move based on cost of living?
- Do you want your family to maintain their current lifestyle?
- The monetary value of a parent's contribution to domestic responsibilities (Childcare, etc) needs to be factored in to the amount of insurance needed as wellÂ
Resources
Ways to connect/follow
Contact the Host - vince@thecfoathome.com
