#60: The Finance Flash Go Podcast | Important Topics About Money | Whole Life Insurance (Don't Buy It!)

Today on the Finance Flash Go! podcast, we’re going to talk about whole life insurance. First, what is life insurance for? Life insurance is insurance needed if you have anyone depending on your income to live. This includes spouses, partners, kids, etc. Don’t have any dependents? Then you don’t need life insurance. Are you and your dependents financially free? Then you don’t need life insurance. Unlike term insurance, which lasts only for the “term” that you buy it, whole life insurance is designed to pay out when you die, no matter when that is, even if that's at age 95. That is an upside, I guess, to whole life insurance. However, there are a whole lot of downsides that make whole life insurance really not a great or even mediocre option for 99% of physicians out there. This is not a comprehensive list but the downsides include: - It is wayyyy more expensive than term life insurance - The returns are low - These bad returns (often negative) are front loaded - Most policies are surrendered prior to death, meaning that those who bought them found they did not serve a purpose - Many more! So, don’t buy whole life insurance, especially if you are a resident. Buy term life insurance that you can drop when you reach financial freedom! Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice. A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions. We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!