I don't need life insurance!?.. Really?

Tonight, I want to talk on the subject life insurance. Many people said " I don't need life insurance now, I'm single, I 'll wait few years until I have family" I don't agree with this point. In fact, I believe buying life insurance is the first fundamental step to take in order to build wealth tonight. It's more important than your retirement account. You should get one as soon as you get out from college and start a job. Let me tell you why. First, from the cost point of view, the younger you're, the cheaper the premium it is. The premium is calculated based on three factors: 1)Age, 2)Health 3)Policy amount. As you can imagine, you're usually healthier when you're young than when you're old. That's another factor to drive the cost down (save you money) when you buy early. Also, it is possible insurance company deny applicant because of health problem. Once it rejected, a person may never be able to be covered for his/her whole life. Go get it when you're young and healthy. Second, from a emotion point of view, isn't it one of your ultimate reason to make a lot of money, build a lot of wealth, is to share all the joy and wealth with your family, your parents, your brother, sister, your spouse, children, etc.. What if (touch wood) you leave the world too early? Wouldn't it be nice that you know at least you're leaving something behind to your loved one? At least your parents spend tons of money to raise you up! It just make sense to 529pm you should get coverage as soon as possible. Don't worry the cost! I've seen policy that is as cheap as 10 buck per month for 100,000 coverage. Your insurance agent should be able to help you.

Most of us do not know this method to invest TAX FREE legally

Tonight, I want to talk about one of the most "overlook" method to invest your money tax free mainly for your retirment purpose. Most people use 401k, IRA, Roth IRA as their vehicle to invest tax free or tax deferred. Very very few people heard about life insurance as a investment vehicle. Generally, people believe that one could get benefit from life insurance if the insured die. Well this is the "old" way-> term insurance. Another type of insurance has cash value built-in the premium. It means that a portion of your premium will go toward the cost of your insurance coverage. The bigger coverage you buy, the higher the cost. The remaining premium will go into an investment account which will earn money for you. The yield % vary depending on which type of cash value insurance you buy and which company you go with. The best thing about this program is that the money grow tax free! Money will compound at a much faster rate compare to taxable account, like our general stock account, CD, etc. So, what's the catch? Most policy has this restriction called Surrender charge. You're not allowed to withdraw money in the first 5 to first 10 years. But if your idea is to invest for long term for retirement, say 20 year +, and you have max out other tax-free investment, life insurance could be another way to diversify and enjoy the tax free benefit.