I am Frank Biaggi, the CEO of Biaggi Life and an independent life insurance broker in California. With our agency development partner, Kimberly Tran, we’re going to talk about term insurance and permanent insurance, and which one should you buy. 

I have recently seen major companies promoting 30-year term policies. Let’s just look at this competitive 30-year term policy and see what it is everyone talking about buying.

So, a 30-year term policy from a leading carrier from an A+ company is more expensive than a permanent policy that another major A+ carrier offers? How can that be?

The way this works is, that this new indexed universal life policies, have variable premiums. We will not delve into grouping them as they are not the same, and they have many variations. We usually look at over 50 companies when we’re comparing policies. 

Indexed Universal Life policy is one of my favorites. It’s very flexible, it has a minimum premium of $275 a month, but then you can also guarantee the premium to age 90. In a lot of companies, you can guarantee them all the way to age 120. It just depends on how far you want it to go. 

The bottom line is, permanent policy has a lower minimum premium, it has a guaranteed premium up to age 90. You can also guarantee many of these policies, at age of 120 if you want to. I think 5 percent of people only live up to 90, I’m not sure how necessary that is. It’s a very competitive policy.

“If term is more expensive than these perm universal life policies, why do people bother to buy term at all?”

I think it used to be that permanent policies were a lot more expensive than the term. In the old days, before Universal Life, all they had was Whole Life policy, and they were really expensive. People couldn’t afford them and they bought term. 

But now with these new indexed universal life policies that are so flexible, this one is obviously cheaper than buying a 30-year term.

The goal of this blog is not just to dissect the pros and cons but to illuminate the path for those considering getting into life insurance. And that’s why we’re here, as we want to get the word out so people know what to buy.

If you find this blog informative, and ready to discover the insurance policy that aligns with yours, try booking a virtual appointment with us. We are located in California and specialize in offering expert advice. 

At Biaggi Life, we are centered on transparency, value, and hassle-free experiences, we’re here to guide you every step of the way. If you are looking for a partner who will tell it like it is, Biaggi Life is your go-to. Let’s secure your future, together.

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