Which is better: 401k or Life Insurance?

Photo by https://unsplash.com/@mirzaie

When Moneygeek.com reached out for expert advice on the role of insurance in financial planning, I was eager to help with this important area. It is rare to get advice about insurance from someone who doesn’t have a financial incentive in the outcome.

Here are highlights from the article www.moneygeek.com/insurance/life/types/401k-vs-life/#expert=miriam-whiteley-cfp

Our research indicates some consumers are considering whether to fund a 401(k) or permanent life insurance as a means of retirement planning. Why might they be making this comparison?

Both can help the consumer protect their loved ones but in very different ways. I talk about the differences, and how to evaluate which would be better for you.

How do the contributions and contribution limits for a 401(k) compare to premium payments for life insurance?

Contribution and contributions limits vs. life insurance premiums are one of the aspects I compare in my response.

Recently, some social media accounts have touted the value of insurance as a way to save for and fund retirement. Is this just marketing?

It is generally wise to be skeptical about the claims made in advertising because the first goal is to get your attention, and usually, that means leaving out crucial details in the quest to get you to stop and watch. When it comes to products sold to help you reduce financial risk, these attention-grabbing messages are targeted at your emotional brain and what is at your heart’s core: protecting and providing for your loved ones. Keep that in mind. Do your research and invite your thinking brain to join the conversation when you make these decisions.

If you missed the earlier segment on Moneygeek on whether life insurance is worth it:

www.moneygeek.com/insurance/life/is-life-insurance-worth-it/#expert=miriam-whiteley-cfp