October 22, 2013
Life insurance is sold by commission based salespeople. Why is this a problem? What can you do about it?
Life insurance is sold by commission based salespeople. Why is this a problem? What can you do about it?
It is a problem, because they are going to try selling you whatever is going to make them the most money. What you can do about it is go to an online clearinghouse if you need life insurance. Also, if you do need life insurance, buy term.
Well said, Katherine. Let’s recap.
If a life insurance agent makes a big fat commission on cash value policies (whole life, traditional life, and variable life) or a tiny commission on term (annual renewable or level term), which one do you think he is going to recommend? The cash incentive is on the cash value policies, which is why most people own these very expensive “investments.” You cannot afford to sit down with this type of salesperson. Avoid them. How?
Go to accuquote.com or term4sale.com and have them compete for your business as they scour the United States for the cheapest term policies that fit your particular situation. This is only if you need life insurance. Millions of people do not.