June 29, 2013

Cash-value life insurance is pushed heavily by insurance agents. Why? What are the 3 primary ones sold. Alternatives?

2 thoughts on “June 29, 2013”

  1. Thomas Graham says:

    The reason cash-value life insurance is pushed is because cash-value life insurance will make the insurance agents more money in commissions. This is because their is a large amount of fees with cash-value plans. The 3 primary cash-value life insurance policies that are sold are: whole life, variable, and universal life. All of these insurances will cost you much more than the alternative, term life insurance or an ART. The reason term life insurance or an ART or much better for you is because they do not have high commissions like the cash-value policies.

  2. Mike Finley says:

    Outstanding response, Thomas! When a person needs life insurance (many do not) there is a smart way to purchase it and a not so smart way. Avoid all cash-value polices and the insurance people who sell them. When you need life insurance, go online to a term clearinghouse like accuquote.com or term4sale.com and have them scour the United States for the best ART (annual renewable term) or level term policy (cost stays the same for a 5, 10, or 20 year period).

    Keep this simple and follow the guidance set forth by Thomas. This will free up more of your money, which will help you increase your emergency savings, feed your company retirement account, or maybe fund your Roth IRA. Make it happen!

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