|
Life Insurance Policies fall into 2 camps: pure insurance and
term policy coverage. There are also many different variants
associated with whole life, where build cash value, pure term
insurance, and investment products are combined together. In
the United States, agents sell life insurance policy plans to
individuals and try to make sales due to the high paying
commission and profit in the industry.
Investment component policies are much more expensive then
term policies and because of this, many individuals who
purchase whole life policies cannot afford face value, and are
in return left without any insurance. There are 2 forms of
returns that an agent quotes associated with whole life
policies: guaranteed and non-guaranteed. So what is the
difference between the two? Guaranteed return means that a
fixed interest is added on top of the cash value of the
policy, the non-guaranteed return are pretty much guesses
which are based on projected investment returns (and not
reality).
It is important to keep your insurance and investing
completely separate from each other. There are options
available for investment and many of them are better
investment opportunities as opposed to whole life policies
that are full of high commissions. The goal you should aim at
is to pick out a policy which lasts for your retirement to
start coming in. Older individuals tend to pay higher life
insurance rates because many are not so healthy, therefore it
is a good idea to practice buying a policy as early as you
can, however avoid making the purchase until you have
dependants.
Always tell the truth on your application and avoid making
false comments in order to obtain a lower insurance rate. You
should be aware of the fact that an insurance company will
investigate if a huge claim is made.
Where to look for life insurance quotes?
Internet is a great place to look for life insurance deals and
quotes, and is a lot easier to find out what's out there as
opposed to having pushy sales people ringing on your door or
phone.
Source: http://money.cnn.com/ |
|
