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Finance Flash Go! Episode #60: Whole Life Insurance (Don’t Buy It!)

Today on the Finance Flash Go! podcast, we’re going to talk about whole life insurance.

Listen to the full episode and subscribe here!

First, what is life insurance for?

Life insurance is insurance needed if you have anyone depending on your income to live. This includes spouses, partners, kids, etc.

Don’t have any dependents? Then you don’t need life insurance. Are you and your dependents financially free? Then you don’t need life insurance.

Unlike term insurance, which lasts only for the “term” that you buy it, whole life insurance is designed to pay out when you die, no matter when that is, even if that’s at age 95.

That is an upside, I guess, to whole life insurance.

But, there are downsides, too…

whole life insurance

However, there are a whole lot of downsides that make whole life insurance really not a great or even mediocre option for 99% of physicians out there.

This is not a comprehensive list but the downsides include:

  1. It is wayyyy more expensive than term life insurance;
  2. The returns are low;
  3. These bad returns (often negative) are front loaded;
  4. Most policies are surrendered prior to death, meaning that those who bought them found they did not serve a purpose; and
  5. Many more!

So, don’t buy whole life insurance, especially if you are a resident.

Buy term life insurance that you can drop when you reach financial freedom!

Related posts:
10 Reasons a Hybrid Investing Approach is Best
How to Find the Perfect Balance Between FIRE & YOLO
5 Easy Steps for Physicians Who Hate Personal Finance
Finance Flash Go! Episode #45: Small Cap vs. Mid Cap vs. Large Cap Stocks
My Stock Portfolio Is Better Than Your Financial Advisor’s
Stress Free Stock Market Investing Is Easier Than It Seems!
Important Money Lessons That I Learned From My Wife
Finance Flash Go! Episode #44: Understanding Growth vs. Value Stocks

I really hope that you all enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected].

And please subscribe and give us a 5-star rating if you enjoy the podcast! It helps us continue our mission of helping all of us to achieve financial well-being!

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    Jordan Frey MD, a plastic surgeon in Buffalo, NY, is one of the fastest-growing physician finance bloggers in the world. See how he went from financially clueless to increasing his net worth by $1M in 1 year and how you can do the same! Feel free to send Jordan a message at [email protected].

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