don't be fooled by agents when buying life insurance?

Question

if you buy whole life they tell you you can borrow "your money" but you have to pay back with interest because if you don't if you die the company will deduct the money you borrow from the death benefit sya you have 100,000 insurance and you take 20 and don't pay it back you die your family only gets 80,000. and if you dont take any money and you have 100,000 benefit and 20,000 cash value and you die your family gets 100,000 and the company keeps your cash value.now universal life is a little confusing it works like this example you buy 100,000 for 45 dls a month with part of this they buy you a annualy renewal term ins.the rest goes to a savings account what happens every year it cost them more to keep this term ins. on you aroun 48 years of age what you pay in premiums it is not enough to cover this term ins. so what they do they start using the money from your savings to keep your premium the same but around age 67 your cash value is gonesoyouneedtopaymoretokeepyourinsurance

Answer 1

Life insurance agents.. all they know is how to screw people over by selling cash value policies so that they can earn lots of commissions. If they were securities licensed, they would know that they can make lots of money by selling investments because you can earn quarterly or annual commissions from your assets under management.

If people knew that by keeping investments separate from life insurance, they could be building lots of wealth by the time they retire. That's why term insurance and investing the difference is the best way to protect the family.

Answer 2

I recommend that you visit this website where you can get rates from the best companies: http://insure-cheap.info/index.html?src=2YAjfusqUW41

RE :Don't be fooled by agents when buying life insurance?
if you buy whole life they tell you you can borrow "your money" but you have to pay back with interest because if you don't if you die the company will deduct the money you borrow from the death benefit sya you have 100,000 insurance and you take 20 and don't pay it back you die your family only gets 80,000. and if you dont take any money and you have 100,000 benefit and 20,000 cash value and you die your family gets 100,000 and the company keeps your cash value.now universal life is a little confusing it works like this example you buy 100,000 for 45 dls a month with part of this they buy you a annualy renewal term ins.the rest goes to a savings account what happens every year it cost them more to keep this term ins. on you aroun 48 years of age what you pay in premiums it is not enough to cover this term ins. so what they do they start using the money from your savings to keep your premium the same but around age 67 your cash value is gonesoyouneedtopaymoretokeepyourinsuranc...
1 following 10 answers

Answer 3

For most people it is best to buy term life insurance. Life insurance plans that builds up a cash value like whole life, universal life, et cetera are rarely the best choice.

You will find many websites out there that promote whole life insurance and disparage term life insurance. They are almost all run be insurance companies. Insurance companies make more money from whole life and it is in their interest to push it.

If you look at financial sites not run by insurance companies, they are almost unanimous in recommending term life insurance. Look at big name sites like Yahoo,CNN, Motley Fool SmartMoney.com and Kiplinger's, and they all recommend term life insurance for most people.

Whole life has the advantage of having a built in savings program, but you lose a lot of money to high commissions. It is usually better to buy term life insurance and invest the money you save in an IRA, 401K, or mutual fund. There are, however, rare cases where whole life is better and these are discussed in the articles below.

Answer 4

When you pay minimum premium, yes! You have described it perfectly, however, you haven't been taught the whole truth of what it is you are buying when you buy this type of insurance, because there are other options included in this policy which you have not described.

You should talk to a good agent. If you live in California you may contact me, I will explain exactly what it is. www.insurancebybarclay.com

Answer 5

If your premiums have gone up on universal life insurance then it was not funded properly.This is an intrest sensative product.It sounds like your policy was funed at a way too early age.This product should be funded to age 100 or maturity.

Answer 6

Life insurance with cash value don't pay out cash value when you die! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams!

Answer 7

How is this a question?

Sounds like you work for one of those "Buy Term and Invest The Rest" companies. Thats like being a realtor and telling all of your customers that they should only buy single family, 2 story houses and condos, townhouses, and cape cods are all evil.

Grow up.

Answer 8

Do NOT check out Suze Orman. Orman sells books and TV advertising by discrediting the profession she claims to represent. In fact, she was a stock broker, not a financial planner; and life insurance is by far her weakest area of knowledge.

Whole and universal life have tremendous value when applied to the proper situation, and can often be less expensive than term in the long run. Choose an advisor who employs a comprehensive philosophy. The result will likey be the optimum combination of term and permanent coverage to best serve your needs.

Answer 9

you need a insurance agent that will look out 4 u. and do research yourself. check out suze orman she is great. thanks 4 the info.

Answer 10

Huh?

What's the actual *question*?

Remember, punctuation is your friend...