Here are a few myths and misnomers. Buy Term & Invest the Difference: This money motto has been around for over 50 years. It’s based on comparing term life insurance costs to whole life insurance premiums. By subtracting the difference, you have money leftover to invest. But invest in what – market risk investments that are taxable outside ERISA retirement plans? Generally speaking, whole life insurance is a great bond alternative that accumulates tax deferred and is distributed via policy loans tax-free. You could also purchase domestic or foreign indices that have a hedge position against market loss. Today’s cash value life insurance is not your grandfather’s life insurance and “buying term and invest the difference” is an antiquated platitude, which few do. They spend the difference. Employer Provides Coverage: It’s a great benefit to have, but not a benefit your dependents can live on. Two to three times earnings are almost always inadequate to protect a family. Employer coverage is a good start but not a complete life insurance plan. Life Insurance is Outside My Belief System: Life happens everyday. But for some people life always happens to others and never to themselves. They somehow imagine themselves immune to   Read more…