Is Permanent Life Insurance Bad For A Young Fitness Coach?
Why don’t most people load the squat bar on their back and go for a jog?
At the surface, it kind of makes sense...you squat for strength...you jog for endurance.
WHY NOT SAVE TIME & JUST COMBINE THE TWO?
As a fitness expert, the answer is obvious...
Jogging with a squat bar is an inefficient way to build muscle
Running with a barbell is potentially costly to your back and knees and thus not too efficient for endurance training
How you likely just felt reading that ridiculous example is how I feel when I hear permanent life insurance is being sold to a young fitness coach!
It is often positioned as a “2-in-1 solution”...
Part life insurance when you die
Part retirement money when you are older
The problem is just like jogging with a barbell!
WHY IT CAN BE A PROBLEM:
It will do those things but it's often very inefficient and worse usually expensive.
And on top of that, it is often sold to young people that do NOT yet need any life insurance but really just need a retirement savings strategy.
CAUTION FOR FUTURE YOU:
Lastly, I won’t get into this point in any detail...but those “retirement features” are very complex and there are many ways that you could accidentally destroy the whole policy when retired and go to “pull out the money”.
Just like fitness. an exercise is meant to target a specific muscle you want to strengthen.
Insurance should work the same way...it should cover a specific risk in your life.
In my opinion, if you find a “2-in-1 solution” you are likely to have two things done less efficiently rather than a targeted approach for each.
IMPORTANT SIDE NOTE:
Just to clarify, my issue is not with permanent life insurance. There are some legitimate reasons that people do need to have an insurance policy that lasts permanently. (They are not common but they do serve an essential purpose for some individuals.)
My issue rather, is that far too often these policies are sold to younger people that do NOT need them.
WHY ARE THEY OFTEN RECOMMENDED?:
One reason is likely that these policies often pay high commissions to the agent that is trying to sell it to you.
CONCLUSION:
I urge you to thoroughly understand what you are signing up for.
If you are considering purchasing life insurance, please understand how it fits within your larger financial goals.
If you have questions, or would like my help identifying how you could achieve your financial goals...please email me. I am happy to support you and your coaching business.
Best
Pat
Disclaimer: This is meant to be educational. This is not advice for your specific situation. There are situations that all types of insurance have merits. Please consult a qualified financial and insurance specialist before making or changing your insurance policies.