The Truth About Life Insurance

Myth: Cash value life insurance, like whole life, will help me retire wealthy .
Truth: Cash value life insurance is one of the worst financial products available.

Sadly, over 70% of the life insurance policies sold today are cash value policies. A cash value policy is an insurance product that packages insurance and savings together. Do not invest money in life insurance; the returns are horrible. Your insurance person will show you wonderful projections, but none of these policies perform as projected.
Example of Cash Value

If a 30-year-old man has $100 per month to spend on life insurance and shops the top five cash value companies, he will find he can purchase an average of $125,000 in insurance for his family. The pitch is to get a policy that will build up savings for retirement, which is what a cash value policy does. However, if this same guy purchases 20-year-level term insurance with coverage of $125,000, the cost will be only $7 per month, not $100.

WOW! If he goes with the cash value option, the other $93 per month should be in savings, right? Well, not really; you see, there are expenses.

Expenses? How much?

All of the $93 per month disappears in commissions and expenses for the first three years. After that, the return will average 2.6% per year for whole life, 4.2% for universal life, and 7.4% for the new-and-improved variable life policy that includes mutual funds, according to Consumer Federation of America, Kiplinger's Personal Finance and Fortune magazines. The same mutual funds outside of the policy average 12%.
The Hidden Catch

Worse yet, with whole life and universal life, the savings you finally build up after being ripped off for years don't go to your family upon your death. The only benefit paid to your family is the face value of the policy, the $125,000 in our example.

The truth is that you would be better off to get the $7 term policy and and put the extra $93 in a cookie jar! At least after three years you would have $3,000, and when you died your family would get your savings.
A Better Plan

If you follow my Total Money Makeover plan, you will begin investing well. Then, when you are 57 years old and the kids are grown and gone, the house is paid for, and you have $700,000 in mutual funds, you'll become self-insured. That means when your 20-year term is up, you shouldn't need life insurance at all—because with no kids to feed, no house payment and $700,000, your spouse will just have to suffer through if you die without insurance.

Home insurance with a difference

Unlike Youi Home and Contents Insurance, most Home and Contents insurance companies make a lot of assumptions about your house, where you live and your contents. At Youi Home and Contents Insurance we believe you’re all different, living differently, with different styles and tastes. That’s why we ask you more questions. Because the more questions we ask the fewer assumptions we have to make, the more tailor made your home and contents premium will be. It’s a smarter way of doing home and contents insurance that could save you lots of money.

Go ahead, do a Youi Home and Contents quote online or call our highly trained contact centre staff and see how much you could save.

Your Youi Home and Contents policy is yours to manage with our easy to use Online Policy Manager. You can view, change, add, remove, save, download, track, cancel and claim without speaking to anyone. However we do have helpful contact centre staff available to speak to if you so wish.

Youi is short for ‘you insured’, because at Youi Home and Contents Insurance we put you at the centre of everything we do.

Car insurance with a difference

Some car insurance companies make a lot of assumptions about you and your car usage. At Youi we don’t assume, we ask. We feel it’s important to understand you and how you use your car, so you only pay for car insurance that you need.

We believe the more we know, the fewer assumptions we need to make, the more accurate your car insurance premium will be, and therefore the more you should save. For example, if during the week you use your car less, or park in a secure area, you should pay less for your car insurance. Or if you’re a pilot, a stay at home parent, a retiree, or work from home and generally use your car less, you should also pay less for your car insurance. We believe fewer assumptions means a better understanding of you that should equate to lower car insurance premiums.

We’ve also made managing your car insurance simple. You can either contact our highly trained contact centre staff or manage your car insurance policy online yourself with our unique Youi Car Insurance Online Policy Manager. It puts your car insurance policy in your hands. 24/7. You can add, remove, renew, amend or request to cancel your policy without speaking to anyone.

Youi stands for You.Insured. It’s a smarter way of doing car insurance that could save you lots of money.