Radical Thoughts on Life Insurance

martinis and your money

Radical Thoughts on Life Insurance

September is Life Insurance Awareness month, so I devoted today’s podcast to this important topic, and I am thankful to this podcast episode’s partner TermLifeInsurance.com TermLifeInsurance.com helps family’s save money on life insurance.

On today’s show, I am talking to Joshua Sheats from the podcast, Radical Personal Finance. As you will hear in the episode, Joshua is just about the best person I could talk to about life insurance since he started his financial planning career with an insurance company and has received extensive training specifically in this area. It’s a long show, but one that is filled with valuable information. If you want to check out other shows or posts I’ve written about life insurance, here are a few:

What are we drinking?

Joshua – Florida’s finest filtered tap water

Shannon – Vodka and Tonic

Podcast Notes: 

  • Joshua gives his background in life insurance and why he is so passionate about it
  • Joshua started his financial planning career at Northwestern Mutual which is a company that has a history rooted in whole life insurance
  • We discussed the answer to the question “What type of life insurance is right for me?”
  • Joshua discusses why whole life insurance gets a bad rap
  • Joshua talks about the phases of need of life insurance
  • Shannon and Joshua talk about Shannon’s client who was sold a whole life insurance policy as an investment
  • If the need for insurance is temporary, you buy term life insurance, if the need is permanent, it should be met with whole life insurance.
  • Joshua believes that all people need some portion of permanent life insurance
  • In general, you solve death benefit needs with term life insurance because it’s your cheapest way to buy a large amount
  • Shannon asks Joshua – How do you manage having the insurance coverage you want to fit within your limited budget?
  • Joshua talks about how insurance agents are paid and what clients should expect when they work with one
  • Shannon asks Joshua how people can find a good insurance agent if they want to work with one
  • Joshua talks about whole life insurance as an investment option, when does it make sense and what part should it play in your financial picture

life insurance1

Random Three Questions

  1. What’s the best investment you’ve made?
  2. If you could only have one book with you on a deserted island, what would it be and why?
  3. When you relax, what do you do?
Do you have life insurance? What are your thoughts on whole life insurance specifically whole life insurance as an investment option?
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Shannon is a financial planner who left a “traditional” financial services firm to start her own company, The Financial Gym, because she felt traditional financial services firms did not have the tools or resources to help people in their 20s and 30s who are starting out and trying to build assets while also managing debt. She realized that the key to long-term personal financial success is a commitment to financial fitness and making smart financial choices. Through her blog, Financially Blonde, her book, Train Your Way To Financial Fitness, her podcast, Martinis and Your Money and The Financial Gym, Shannon is committed to making financial fitness fun, easy and accessible for everyone.


  1. To tell you the truth, I have bad feelings with whole life insurance because some guy tricked into thinking it was an investment account and a good choice for me at 21 years of age. After 3 years putting 100 bucks a month, I asked if I could take it out, they said no and only after 5 years it will have funds to withdraw. I took my losses and let it go. 3 grand out the door. I only have term life now and will never go into whole life again.

  2. Those feelings of being uninsured are all gone when I got my life insurance. It feels good that I have invested in life insurance. I feel more secured than ever. Nice talk with Joshua. I enjoyed the talk and learned about life insurance.

  3. We are a young 30 years old couple and we love our whole life insurance policy(with a mutual company). We structured it to maximize cash value. Here are 7 reasons why it was a good choice for us:

    1. Guarantees goes a long way and we value the fact that the money we accumulate is guaranteed.
    2. Tax-Free growth
    3. Liquidity (we value this a lot). In times of need, when the market crash and you can’t sell your stock…liquidity is king.
    4. Increased privacy.
    5. In high interest rate environment (which could happen), having access to loans at a the insurance policy rate(~6%) can be a life saver or a great opportunity.
    6. Ever growing death benefit and cash value since we re-invest our dividends back into the policy.
    7. We do not have to go through the ordeal of qualifying to a loan when we need one. (most of the time, the bank won’t lend to you when you need the money the most.)

    In short, to us, it’s not really an investment. It’s a tax-free saving account with guaranteed returns that we can collateralize in time of need without forfeiting the returns we could have earned if we left the money in there.

    It’s not for everyone but to us, the life benefits of our policy has been tremendous.

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