Choosing Life Insurance Plans from a Farmer

Our current and impending debt load has me thinking about life insurance.

Building the shop and yard is investing in assets that are less liquid than we’ve had in the past and without Kyle it would be an incredible struggle for me to hold it all together alone.

I talked to one local agent about our options for term and whole life insurance.

Term life was super cheap. Less than $1,000 a year for $2,000,000 of coverage for the next 20 years. To stretch that out to 30 years, it was about $1,500 a year for $2,000,000. Much more affordable than I thought.

Whole life on a $2,000,000 policy would be about $8,500 a year indefinitely.

Quite a jump, but on year 21 or 31 we would still have coverage.

I was leaning heavily one way and when I asked the agent the next question he sold me immediately. I asked, “what do your wealthiest clients purchase?” He didn’t even think about, didn’t even take time to blink before he answered, “whole life.”

We’re not wealthy, but we want to be so I try to spend our money like we already are.

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