You hear about retirees who are forced to find work at McDonald’s or Walmart. Have you ever joined a seniors chat room on the Internet and witnessed the concerns most of them have about running out of money before they die?Many of these seniors are frightened to death. And this is before we even consider the babyboomers right behind them.An intelligently purchased life insurance policy can be the saving grace for those you love the most.Now, let me set the record straight. I have nothing against term life insurance. Over the past 24 years I’ve personally sold millions of dollars worth.

I believe to be criminal … is when term life insurance is sold under false pretenses.Let’s use a simple example.A 35 year old nonsmoking male in excellent health can buy a $500,000 term life insurance policy for about $700 per year. The premium is guaranteed to be $700 for 30 years. Some companies will be a little cheaper and some a little more expensive.The buy term and invest the difference advocate would compare this to a $500,000 whole life insurance policy at $3,650 per year. Once again, some companies will be higher and some lower.

I say theoretically because in the real world you would never consistently invest $2,950 each year.Not the same way you would commit to a life insurance policy premium.Why do I know this? Call it human nature based on 24 years of experience.But, let’s give you the benefit of the doubt and say you actually do invest according to this hypothetical plan. What rate of return are you going to make over 30 years? 5% … 8% … 10 percent?By the way, this question opens up another can of worms. The psychology of investing. But, we’ll save that controversy for another time.

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