NB: Much of the following are not my words, but rather I combined portions of “Two Young Men” by Martin Conroy with “What Good are Cash Values?” by Halsey Josephson and added some words of my own.
On a beautiful late spring afternoon, forty-three years ago, two young men graduated from the same college. They were very much alike, these two young men. Both had been better than average students, both were personable and both—as young college graduates are—were filled with ambitious dreams for the future.
Recently, these men retired. They were still very much alike. Both were happily married. Both had three children. And both, it turned out, had bought life insurance not only upon graduation, but at several times throughout their working careers.
Neither had accumulated any significant savings, as college, weddings, taxes and a high standard of living consumed most of their earnings. While they both thought it important to leave $250,000 at their demise, there was a difference.
Have you ever wondered, as I have, what makes this kind of difference in people's lives? It isn't a native intelligence or talent or dedication. It isn't that one person wants success and the other doesn't. The difference lies in what each person knows and how he or she makes use of that knowledge.
One of the men believed that life insurance is the cornerstone of a sound financial plan, and bought three policies totaling $250,000 over the course of his working lifetime. One is contractually paid up and the other two, while not paid up, require no out-of-pocket outlay to keep them in force.
The other man believed he could invest the premiums better than the insurance company, and accordingly, bought term insurance throughout his working career. While he initially invested the difference and indeed made a profit on some early trades, the amount he invested dwindled over time and he even used his earlier gains to help pay for his daughter’s wedding.
Even a bare bones guaranteed universal life policy will at this point set this man back $400 to $500 an month. That is an expense that most people don’t want during retirement.
I cannot promise you that success will be yours if you buy permanent life insurance when you’re young. But I can guarantee that you, and probably your spouse, will feel safe and secure throughout your working career and into your retirement.