This is one of those decisions that may appear complicated but actually is incredibly simple. For basic family protection, the only kind of life insurance you need is term insurance. End of story.

But wait, there’s so many options out there and reasonable sounding salespeople are suggesting other “permanent” products – whole life, universal life, variable universal life, and so on. Shouldn’t I at least get up to speed on those before I make a decision?

In short, no. When you go shopping for a vehicle to get your family around town, do you include rock star touring buses in your search? Heck no! Yes, they could transport your family – and it could be fun…until you had to parallel park – but that’s not what they were built for and you would be paying out the nose for features you don’t need.

Same thing here. We are not saying these other products are completely useless, just that they are super expensive and built more for solving rich people’s problems like avoiding taxes.

Term is typically 1/10th the cost of other kinds of insurance!

The best approach to protecting your family is to rent protection for the amount of time it is going to take to build up your savings and “self insure.” That’s what term insurance does – if you keel over during the term of the policy, then your family will get paid the amount of coverage you bought. Easy peasy.

This is a classic case of K.I.S.S. – Keep It Simple, Stupid!

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