how can you compare term with permanent life insurance?
It is silly to say term life is better since commission is less. Same with EIUL, as your agent how much percentage he will make on your first year premium. Surprisingly, almost all insurance company will give a hundred percent of the first year premium to marketing / agent. term is like renting apt. and after 20 yrs there is no cash value. Perm. life is like buying a house, your loved ones will eventually get the "house" unless you don't have any loved ones. some companies has guarantee feature, for instance, John Han has a program that for a 35 yr old male, you invest ~$600 a month for 10 yrs, it will guarantee $500, 000 insurance payout. What's more, if you invest in Fidelity or Vanguard, you may lost 30~50% of your investment, but in Equity Index UL, you may not lose a penny. For instance, Transamerica in New York TFLIC gives 1% minimal guarantee when you invest in the S&P 500 Index. In other words, last year you would be able to beat market by 38%. Buy term and invest the difference is an old, old concept, I can't believe someone still using it. After 80's it is a mistake if you still use it- Same way you compare a hammer and a screwdriver. They are both tools, but both designed for different jobs. Sure, you can hammer a nail in the wall with your screwdriver, but. it's not the most effective way. It's impossible to effectively compare tools, without first DEFINING THE JOB. Sure, if you're going to live in a place 30 years, buying is better. But if you're only going to be there six months, you're NUTS to buy - renting is definately the way to go. On your guaranteed death payout - If you have to pay in for 10 years, before you get the payout, well, if I have paid in $72, 000 cost of insurance over 10 years at that price, I am not really BUYING a half million, am I? It's more like $400, 000. AND, it doesn't even pay out, unless I DIE, which likely will not happen until I have paid in another $144, 000 - total paid in, HALF the payout, and only if I die? Buy term invest the difference is still being used, because IT MAKES SENSE. Buying life insurance as an INVESTMENT product, is like buying a pair of $800 Prada heels, to bang that nail into the wall. It will make a lot of money for the agent, and even MORE money for the insurance company. And once the customer's paid in a few years, they will realize what a dumb investment tool LIFE insurance is, and that's why 95% of universal life or whole life polices, stay in force five years or less
- I am a customer service rep. can not tell you how frustrating it is to deal with clients who bought term policies on that flawed concept of "buy term, invest. " These agents are out of the business or refuse to return the clients phone calls when the level period has ended & now the ART has started & the clients can not afford the new period & the conversion rates to UL or WL is as equally unaffordable. Then on top of this, the "investments" are not performing as promised. A lot of these people are no longer insurable or on fixed incomes, so they end up just losing their policies. Another trend that I am seeing is that agents are rolling over perfectly performing UL, both standard & variable into new policies, that may give the client a higher interest rate than they are currently making, but this is only for a temporary period, then the minimum guaranteed interest rate on the new policy is 2% if their lucky, where as the minimum gtd interest rate on their original policy is anywhere from 3% - 5%, then on top of this most of these clients are in their 50's & 60's, so the coi is much higher than their original policies. The only person who benefits from this is the agent, not the client. This is just another form of churning. The best way to use term is, as the purpose it was originally created for, young couples, or people who needed a large amount of coverage for limited period i. e. business loans, key man policies. Regardless, term is meant to be a short term solution & agents need to keep that in mind
- "Buy term and invest the difference" is in fact the better deal for most people. Even more so now since term rates have declined considerably. You sound like an insurance sales person
- You answered your own question. But I do not agree with your answer. Not all insurance agents do investments. That requires a different license. Investment advisors are the ones that give investment advice. You might repost your question under "personal finances". And, most of the time the stock market bounces back
- You're right on Ed! I agree wholeheartedly with you. Buying term and investing the difference can be a disaster!
- Life insurance covers lots of different things. Since I live in Oregon I am not sure about New York laws and regulations, so I recommend you call a local life insurance agent. americaschoicetoday.com / Life - Insurance.html They will be able to help you
Knowledge Base
How flexible are life insurance quotes. Can I negotiate with company for a better rate. ?
i got a quote for my wife and me for life insurance 20 years / 400k each. i would like to negotiate a better rate with the broker uming same coverage. can it be done, or are the rates fixed, is there room to negotiate. we did the blood work (compare life insurance)
How do I find life insurance leads online?
hi, could someone please recommend the most cost effective way to find quality life insurance leads on the internet? i live in san francisco if that helps. hey nicola, i found a great software program a few months ago that's great for finding any kind of insurance leads including life (affordable life insurance)
What are some affordable life insurance policies for people with diabetes?
what are some affordable life insurance policies for people with diabetes? looking for $400, 000 in coverage. you can visit this site to compare life insures at your side : free - best - life - insures - comparator - usa. blogspot.com / you need to work with someone who (life insurance quotes)
Knowledge Base: Life Insurance
Why doesn't Medical / Life Insurance cover for Eye Therapy since this is one of the remedial step for lazy eyes?
my son aged 7 years old has been recently diagnosed with lazy eyes and we were told that life and medical insurance doesn't cover such expenses on eye therapies. my take is that this is a medical condition, and eye therapy is one of few solution to encourage the use (life insurance)
Getting life insurance quotes online?
my husband and i want to get life insurance in case one of us dies. when you fill out the quote form online, do you enter your information or your spouse's?. you fill out the answers to the questions for the person who is applying for the coverage so you (life insurance)
What are the advantages to buying life insurance online?
hi, friends can anyone tell me where i can compare our life insurance quotes?. because i am confuse taking a life insurance policy. if you ask this in an appropriate category, you may get responses. i, personally, would not dream of taking out a life policy on line. some people (affordable life insurance)
The Best Type Policy Life Insurance Quotes for Elderly?
any suggestions on finding a reasonable life insurance policy for a man 54 about to turn 55 in a month with a spouse would be appreciated. i recommend you this site where you can compare quotes so you can find the best option for you insuranceq. notlong.com. i recommend you (affordable life insurance)
What are the advantages to buying life insurance online?
hi, friends can anyone tell me where i can compare our life insurance quotes?. because i am confuse taking a life insurance policy. you're going to die anyway. do not bother. i recommend you this site where you can compare quotes so you can find the best option for you (affordable life insurance)
Knowledge Base: Compare Life Insurance
how can you compare term with permanent life insurance?
it is silly to say term life is better since commission is less. same with eiul, as your agent how much percentage he will make on your first year premium. surprisingly, almost all insurance company will give a hundred percent of the first year premium to marketing / agent. term (compare life insurance)
how much for term life insurance? compared to whole life?
im married, age 27 and interested in buying life insurance for me and hubby. for just myself how much would my monthly be approx? im healthy do not smoke and do not want to pay too much money. does term life give you an option of continuing on with them (compare life insurance)
how can i compare all life insurance products of all companies?
do not shop on price alone. check ratings. only do biz with a rated companies or above. also choose a company that gives you a personal agent. never, ever, ever buy online term. i have seen many people burnt this way. as a rule, you need 7 - 8x your (compare life insurance)
Instant term life insurance quotes: How do I get instant term life insurance quotes?
i have just had a little boy and want to look of for his intrest. is there any way to get instant term life insurance quotes without calling insurance companies, who try to sale me? i just want to get an idea of what it would cost for term life (compare life insurance)
Can I buy Life Insurance Policy On - line without Medical Test ?
if yes, which is that web - site or portal that allows compare and buy option for life insurance policy purchase ?. yes and i think bank of america has been offering them of late. yes, usually with a limit on the face amount of about $250000 or so. above (compare life insurance)
