The well known financial platform MoneyGeek featured WRP’s Aaron Rubin in their recent article exploring how consumers can find the best term life insurance policy for their needs. Aaron highlighted key factors to consider and steps to take when shopping for a policy.
First, he reviewed the variables that insurance companies consider when setting premium costs. These include the length of the term (for example, whether you buy a 15, 20, or 30-year policy), the benefit amount, and your age and health. As a result, he advises purchasing term life insurance while you’re young, taking steps to optimize your health (such as losing excess weight) before applying, and carefully considering the term and coverage amount you select.
The more insurance you want, the higher the premium will be. Like the length of the policy, if you over-insure, you'll pay too much. That said, I'd rather over-insure by 10% than under-insure by 10%.
Aaron explains that premiums and coverage terms vary widely from one company to the next, making it critical to shop around to get the best fit. He advises working with a broker, who can compare many different products side by side to get you the best price for the coverage you need.
He also touches on the difference between term and permanent life insurance policies. Aaron cautions that while term policies are ideal for young families, permanent life insurance products—particularly those with long-term care benefits—can be a better fit for older individuals.
Term insurance is fantastic for people who want to buy insurance to support their families if they die prematurely. It’s a way to cheaply make sure that your young children are taken care of or build an estate so that a spouse can have the option not to work.
…[O]n the opposite end of that spectrum, the closer you are to age 50, the more you should consider not getting a term policy and consider getting a permanent one with some long-term care benefits. Chances are, you’ll need long-term care benefits sooner than you think.
Aaron Rubin has been working in the financial industry for more than 20 years and has become a leading voice in personal wealth management. He specializes in providing personalized financial advice to professionals earning equity compensation, helping them reduce their tax burden and build lasting financial security.
MoneyGeek is a prominent financial information platform that offers unbiased advice and insights to help individuals make informed decisions about their finances. With a team of financial experts and researchers, MoneyGeek provides comprehensive, up-to-date information on a wide range of financial topics.
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WRP is a team of tax and financial management professionals with expertise in company-issued stock options. We use research-based investment strategies to grow and protect our clients’ investments and a personalized, one-on-one approach to understand each individual’s goals and priorities. A proud Bay Area business, we are dedicated to local philanthropy and contribute time and resources to local charities to support our community’s long-term well-being.