Denzel Rodriguez explains why monthly payments beat lump sums on convertible term life insurance. A 10-year term with $1,000,000 death benefit costs $5,110 when premiums jump, so convert to whole life before expiration. Term works best alongside investing and debt payoff.
10-year convertible term.
$1,000,000.
$5,110 (example stated as the cost to have a $1,000,000 death benefit).
I recommend when it comes to term insurance, paying it monthly, there's not, there's not a huge difference in savings if you paid in full. Okay. Yeah. So I prefer give as little as possible on a monthly basis because I, I'm still getting the same amount of coverage, you know. Right. So here's the breakdown. We have a 10 year window where we maintain this million dollar death benefit. So this is a 10 year convertible term. That would be our premium costs every year. And obviously before we get to year 10, we want to convert to whole life because if we don't, this price expires and then you see how it jumps right where it costs $5110 to have a million dollars of death benefit and it just keeps jumping right, gets more and more expensive. So that's where term no longer becomes valuable. Term insurance is very valuable when we've got other, other financial moves being made such as investing, paying off debt. Right, These different things where convertible term, we're able to get the most amount of coverage for the least amount of cost, so it doesn't hurt our cash flow.
