January 12, 2015

Most people end up buying whole life, traditional, variable and other cash value life insurance policies over term. Why? Options?

4 thoughts on “January 12, 2015”

  1. Mike Dunlop says:

    This is simple. They buy these policies because their insurance brokers sell these policies and they make a great deal of commission on them. Therefore, the insurance agent or investment broker pushes this policy as being a better policy. In reality these are expensive policies that make bad investment choices. People need to become educated as to the true cost of these policies and will then understand that a term policy is the best life insurance policy if they determine they need life insurance. People do need to be careful with term insurance as well however as there are people selling term insurance for ridiculous prefixes as well. Shopping online for term insurance will give people an idea of what a reasonable rate is for their age and health status.

  2. Brennan Haag says:

    People buy those other life insurance because they feel more protected by them and they don’t understand how much cheaper term life insurance is. Instead of buying whole life insurance you should buy term life insurance and invest the money you save so you will end up having more money saved up at the end of your term life insurance that you could use in an emergency.

  3. Garrett Haag says:

    This is because term life is not not sold and marketed as much. Sales people who sell life insurance want to sell what makes them the most money, term life is cheep and does not net the most profit for them. You are better off avoiding all the cash value policies and just going with term if you really need life insurance. Dont buy in to the marketing pitch and buy it just because they tell you too.

  4. Mike Finley says:

    Well said, gentlemen. Fine job! Let’s review.

    (1) Cash value life insurance is sold at a much higher rate than term because it makes the industry and it’s salespeople a great deal more money.

    (2) Their business model works well for THEM, not you.

    (3) If you need life insurance (millions of people don’t), stay away from your local man and go online to a term clearinghouse like accuquote.com or term4sale.com.

    (4) Buy a level term policy (5, 10 or 20 years for example) that will stay the same for the period you have selected or buy a ART (annual renewable term) policy which will change every so slightly year by year.

    (5) When investing, select no-load index mutual funds. NEVER do it with life insurance products. Awake to the possibilities!

Leave a Reply

Your email address will not be published. Required fields are marked *

The Crazy Man in the Pink Wig