Seasoned retirement and financial strategist, Mark Kinney, explains the differences between the two main types of life insurances and the benefits of each.
Lee, Massachusetts—June 16, 2016—Founding partner of Toole, Kinney & Company, Inc., Mark Kinney, CFP®, posted a new blog entry entitled, “Weighing the Costs: Permanent vs. Term Life Insurance.” In the post, he lays out the main differences between term and permanent life insurances. He encourages readers to avoid any wholesale advice about which type of policy is better, and instead consider their personal finances in making the decision.
In response to the question, “Which policy is better?” Kinney writes, “So, what’s most financially advantageous choice here?
In short, it depends on your financial situation. If you are maxing contributions to your IRA and 401(k) every month and you have a healthy emergency fund, along with a diverse and thriving investment portfolio, and can afford the high premiums, then the a permanent life insurance policy might be a good choice for you. But chances are, for most, a term life insurance plan will do the trick. This option will allow you to keep more funds flexible and available for savings and investments, while still curtailing the risk of your passing during the designated period of time. And, in most cases, if the policyholder outlives the term, the amount that would have been paid out upon death becomes obsolete because the holder has accumulated wealth by other means over of the duration of the policy.”
The entire article can be found HERE http://www.toolekinney.com/weighing-the-costs-permanent-vs-term-life-insurance/
About Mark Kinney
Mark D. Kinney, CFP®, has been advising clients for close to 30 years on how to maximize their retirement income in a sustainable, repeatable, and verifiable manner, while minimizing risk exposure to the daily turbulent financial markets. His keen insights into conservative and income generating investment options have been invaluable to those approaching or currently in retirement. In addition to his decades of experience and financial know-how, he’s held Series 7 and 63 FINRA Securities registrations for over 25 years, holds several insurance licenses, and has held the Certified Financial Planner ™ (CFP®) designation in good standing for 20 years.
After successful careers with a number of reputable financial institutions, Kinney established Toole, Kinney, & Co., Inc., in 1999. Kinney has been cited on such national news outlets and financial publications as CNN.com, Fox Business, NBC, Wall Street Select, and The Miami Herald. He remains active in several area charities, has participated in several marathons, including the Boston Marathon in 2013 and 2014, enjoys all activities outdoors, and currently lives in Stockbridge, Massachusetts.