Life Insurance 101

Life Insurance 101
Life Insurance 101

Life Insurance 101

Life Insurance 101, Contrary to what Vicki says, we wholeheartedly, wholeheartedly believe that no one should buy anything but term life ins. When you have an agent who is trying to sell you a lifetime, variable life insurance, or survivor life insurance, be extra careful with this life insurance agent because they may be looking at their own interests and financial gains instead of you and your loved one.

All life vs period insurance

Permanent insurance, which includes life, universal life, variable life, and survivors’ life insurance, has a built-in “cash value”, but once you understand that the cash value really does not matter to your bottom line, you will never think of buying any of the types. of permanent ins. Life Insurance 101.

Cash value is the “investment” part of life’s ins that you can access through loans or withdrawals. The death benefit may be reduced with the withdrawals, and there may be some fees that may affect your policy in the future. Life Insurance 101.

Also, you certainly do not want to have your life covered forever. If you understand how expensive it can be to pay regularly for a life insurance policy, you will definitely reconsider this purchase. At age 100, the price is $ 1,000 / month for every $ 1,000 coverage. So if you have a $ 500,000 policy, it will cost you $ 500,000 a month at the age of 100.

Life Insurance 101,You only need it when you are younger and when you have relatives who count on you for your income. Outside of the temporary period, you do not need this coverage. Again, it is only for a temporary period.

Insurance agents who tell you the benefits of cash value either do not know how bad a permanent insurance policy is for you or they do not, but chances are they know how much commission they can earn from selling one of these life insurance policies for you and have chosen that path instead of looking into you and your family’s best interest. Life Insurance 101.

What? Do you think I’m going to invest in a life insurance policy? Is not that wonderful?

Yes, there is an investment part to this permanent life insurance, but in reality, the cash value is never really yours. It is the insurance company’s money and they will allow you to borrow from them. They will tell you that you can borrow from it to pay for your children’s college expenses, medical expenses, emergencies, or retirement. But you have to pay the funds back with interest to the life insurance company.

Borrow and pay back my own money with interest? Are you kidding? Is it not the cash value of my money?

Sorry to tell you, but it’s not. Until you cancel the insurance, you pay a huge premium in an investment + life insurance policies over which you have no control. It really is the insurance company’s money. Life Insurance 101.

The investments they offer you are also very limited and they provide additional commissions from the investments you choose because these investments, whether mutual funds or money market funds, are held until the insurance company you buy your policy from. You have a limited number of investment choices, and they may not be the best funds to choose from either.

Types Of Life Insurance Policies

If the life agent, after trying to push life / permanent insurance on you, then switches to time insurance and tries to sell you that type of life insurance, just leave the office. Do not deal with them anymore. They tried to push an insurance product on you that was not in your best interest and now have to resort to selling you a product with a lower commission.

Forward insurance and savings you want

Forward insurance is pure insurance without the investment part. The amount of money that you save by buying long-term insurance at a low price is huge compared to buying a lifetime policy. Take these savings NOW and put them into any investment (investment funds, stocks, bonds, money market) of your choice. Life Insurance 101.

Life Insurance 101, So forget cash value! It is a superficial way for the life insurance company to try to get you to give them a larger amount in commission. Be careful when dealing with certain agents as they may try to convince you that you are buying futures and later tell you that you can add a savings plan or investment part with the futures policy.

Life Insurance 101, The best rule of thumb is to keep any kind of investment away from your policy. Have FULL CONTROL over your money when separating your life insurance and your investments.

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