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5 Myths About Whole Life Insurance Debunked

5 Myths About Whole Life Insurance Debunked

The older we get, the more we want to make sure that we’re financially set for later in life. I have car insurance and renter’s insurance, but I’ve recently delved more into insurance options and learned all about whole life insurance, which I didn’t even plan to look at! Whole life insurance is a permanent life insurance policy that remains in play for the entire duration of the insured’s lifetime. Once the insured has passed, the policy is guarantees that the insurer will pay death benefits to the policy’s beneficiaries.[1] Turns out, there are so many myths and misinformation out there and they are so well-known that I was buying into them without even realizing it, and I was not getting the whole story.

I did some digging and found some of the most common myths people perpetuate when talking about whole life insurance. Prepare to be debunked!

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Myth 1: It’s really only death insurance.

While whole life insurance does pay out to cover burial costs, which can be very expensive, it can also replace the income of the deceased person, meaning that the money paid out in the estate can actually cover missed wages and potential earnings. This can make the grieving process a tiny bit easier because the mourners aren’t worrying about how to pay the mortgage. It can also ensure that a working mother who died unexpectedly left money to cover her kids’ care.

Myth 2: Whole life insurance isn’t an asset.

It’s not just an insurance policy that you can never touch, it is an asset, similar to a place to store liquid cash. Once your policy gets some cash value built up, its annual rate of return is higher than most savings accounts and money market accounts! You can both withdraw money from the policy like a checking account withdrawal, and you can also borrow against it and leave the liquid cash in place.

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Myth 3: You can’t borrow against whole life insurance.

You can borrow against it at a significantly lower rate than bank loans and you get a higher return. You also retain your cash value in the policy, because you are not removing liquid cash from the account, but borrowing against it. You can use that money for any reason and are not penalized like you be if you removed money from a 401(k) before being 59 and a half.

Myth 4: You don’t need it if you’re single or have no kids.

Actually, the sooner you start building up your cash value, the better. You may not have beneficiaries now, but you might in the future, and if you started putting $100 per month in your whole life insurance policy 10 years before you had kids, you will already have nearly $12,000 in cash value built up. That money isn’t just for when you die, but can enable you buy a home sooner, borrowing at a lower rate than banks, or allow you to take time off to be with the kid you just had, or other opportunities for you to enjoy your life.

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Myth 5: It’s unnecessary and too expensive!

According to recently published Busting the Life Insurance Lies, “One dollar paid into your whole life policy can actually perform seven jobs at once: pay the premium, build up cash value, create a waiver of premium rider, install the initial death benefit, provide the ability to leverage cash value through loans, increase the death benefit, and enable Paid-Up Additions.”

This money is cash value dollars, which allows you to access and use the money as needed with no penalties for early removal, like a 401(k), you get a much lower interest rate and can borrow against it, and you get a higher interest rate on cash than in savings or money market accounts, and it also continues to gain value to pay out your potential earnings and burial costs after death.

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There are a lot of myths to be busted and lies floating around about insurance. Keep doing research, make sure to speak to expert advisors, and ask questions. Whole life insurance is specifically made to help you throughout your whole life!

Reference

[1] https://www.metlife.com/individual/insurance/life-insurance/whole-life-insurance.html

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Last Updated on September 18, 2020

7 Simple Rules to Live by to Get in Shape in Two Weeks

7 Simple Rules to Live by to Get in Shape in Two Weeks

Learning how to get in shape and set goals is important if you’re looking to live a healthier lifestyle and get closer to your goal weight. While this does require changes to your daily routine, you’ll find that you are able to look and feel better in only two weeks.

Over the years, I’ve learned a lot about what it takes to get in shape. Although anyone can cover the basics (eat right and exercise), there are some things that I could only learn through trial and error. Let’s cover some of the most important points for how to get in shape in two weeks.

1. Exercise Daily

It is far easier to make exercise a habit if it is a daily one. If you aren’t exercising at all, I recommend starting by exercising a half hour every day. When you only exercise a couple times per week, it is much easier to turn one day off into three days off, a week off, or a month off.

If you are already used to exercising, switching to three or four times a week to fit your schedule may be preferable, but it is a lot harder to maintain a workout program you don’t do every day.

Be careful to not repeat the same exercise routine each day. If you do an intense ab workout one day, try switching it up to general cardio the next. You can also squeeze in a day of light walking to break up the intensity.

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If you’re a morning person, check out these morning exercises that will start your day off right.

2. Duration Doesn’t Substitute for Intensity

Once you get into the habit of regular exercise, where do you go if you still aren’t reaching your goals? Most people will solve the problem by exercising for longer periods of time, turning forty-minute workouts into two hour stretches. Not only does this drain your time, but it doesn’t work particularly well.

One study shows that “exercising for a whole hour instead of a half does not provide any additional loss in either body weight or fat”[1].

This is great news for both your schedule and your levels of motivation. You’ll likely find it much easier to exercise for 30 minutes a day instead of an hour. In those 30 minutes, do your best to up the intensity to your appropriate edge to get the most out of the time.

3. Acknowledge Your Limits

Many people get frustrated when they plateau in their weight loss or muscle gaining goals as they’re learning how to get in shape. Everyone has an equilibrium and genetic set point where their body wants to remain. This doesn’t mean that you can’t achieve your fitness goals, but don’t be too hard on yourself if you are struggling to lose weight or put on muscle.

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Acknowledging a set point doesn’t mean giving up, but it does mean realizing the obstacles you face.

Expect to hit a plateau in your own fitness results[2]. When you expect a plateau, you can manage around it so you can continue your progress at a more realistic rate. When expectations meet reality, you can avoid dietary crashes.

4. Eat Healthy, Not Just Food That Looks Healthy

Know what you eat. Don’t fuss over minutia like whether you’re getting enough Omega 3’s or tryptophan, but be aware of the big things. Look at the foods you eat regularly and figure out whether they are healthy or not. Don’t get fooled by the deceptively healthy snacks just pretending to be good for you.

The basic nutritional advice includes:

  • Eat unprocessed foods
  • Eat more veggies
  • Use meat as a side dish, not a main course
  • Eat whole grains, not refined grains[3]

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Eat whole grains when you want to learn how to get in shape.

    5. Watch Out for Travel

    Don’t let a four-day holiday interfere with your attempts when you’re learning how to get in shape. I don’t mean that you need to follow your diet and exercise plan without any excursion, but when you are in the first few weeks, still forming habits, be careful that a week long break doesn’t terminate your progress.

    This is also true of schedule changes that leave you suddenly busy or make it difficult to exercise. Have a backup plan so you can be consistent, at least for the first month when you are forming habits.

    If travel is on your schedule and can’t be avoided, make an exercise plan before you go[4], and make sure to pack exercise clothes and an exercise mat as motivation to keep you on track.

    6. Start Slow

    Ever start an exercise plan by running ten miles and then puking your guts out? Maybe you aren’t that extreme, but burnout is common early on when learning how to get in shape. You have a lifetime to be healthy, so don’t try to go from couch potato to athletic superstar in a week.

    If you are starting a running regime, for example, run less than you can to start. Starting strength training? Work with less weight than you could theoretically lift. Increasing intensity and pushing yourself can come later when your body becomes comfortable with regular exercise.

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    7. Be Careful When Choosing a Workout Partner

    Should you have a workout partner? That depends. Workout partners can help you stay motivated and make exercising more fun. But they can also stop you from reaching your goals.

    My suggestion would be to have a workout partner, but when you start to plateau (either in physical ability, weight loss/gain, or overall health) and you haven’t reached your goals, consider mixing things up a bit.

    If you plateau, you may need to make changes to continue improving. In this case it’s important to talk to your workout partner about the changes you want to make, and if they don’t seem motivated to continue, offer a thirty day break where you both try different activities.

    I notice that guys working out together tend to match strength after a brief adjustment phase. Even if both are trying to improve, something seems to stall improvement once they reach a certain point. I found that I was able to lift as much as 30-50% more after taking a short break from my regular workout partner.

    Final Thoughts

    Learning how to get in shape in as little as two weeks sounds daunting, but if you’re motivated and have the time and energy to devote to it, it’s certainly possible.

    Find an exercise routine that works for you, eat healthy, drink lots of water, and watch as the transformation begins.

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    Featured photo credit: Alexander Redl via unsplash.com

    Reference

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