Day 36 OR Day 37

We have a “term-life” insurance bias. Meaning that we encourage students to purchase a 30-50 year term life policy while in their very-early twenties. This bias is based solely on the concept of becoming “self-insured,” meaning that the student will have sufficient savings/investments to cover expenses (death/no-debt, in this case) when they are retired (60-death).

However, there are valid exceptions to this advice. For instance, if you have a known hereditary issue that manifests in your family at 60+ years old then you would want a whole-life annuity. While annuities aren’t part of the test, they may be something the kids should at least be exposed too. An annuity is a type of insurance that pays for itself after reaching maturity. Also, if the student doesn’t believe that they will be able to be self-insured (learning disability, etc. that would impact lifelong earnings) then the whole-life annuity will be a better choice.