I'm not getting enough returns from my permanent life insurance. Should I shift to another policy? LifeMartagent
Total Comments: 21
Posted: Fri Oct 03, 2008 06:20 am Post Subject:
Hi Life Martagent, please clarify the word ‘return'.
Is your policy the indexed one? Which type of fund you have chosen to invest your money?
Given the present market scenario, you can't blame the policy for not generating enough return on your investment.
However, the purpose of the life policy is not to generate return on it, but to cover the family's interests at the event of your unfortunate death. If you have bought enough coverage as to meet the expenses that the family may incur after your death, then may not need to shift the policy. However, if it's otherwise and id you can manage better coverage at more reasonable cost, you may think of switching.
~Jeremy
Posted: Fri Oct 03, 2008 07:49 am Post Subject:
Any protection plan you have in hand is the best policy. This is because you can't go back in time to get the policy at younger age.
I agree with Jeremy that the primary purpose of getting a permanent life insurance. You may like to find out if you have adequate insurance coverage for yourself and for your family members. Return is secondary concern.
Posted: Sat Oct 04, 2008 06:51 am Post Subject:
Hi Life Martagent, please clarify the word ‘return'.
Hey, I'd simply mean that rate of my policy returns..they are not good as per their competitors' rates in the market.I was just wondering if shifting to another one would be as good or could be even better for my future.
LifeMartagent
Posted: Sat Oct 04, 2008 07:04 am Post Subject:
See, I feel it would be a better decision to take into consideration the purpose for which you got this policy. It could have been for supporting your dependents with your death benefits. It could also have been to form a considerable part of the investment portfolio. So, its better to scrutinize all aspects that meet your long-term needs and then only take another step forward.
Regards, Arindam
Posted: Sat Oct 04, 2008 07:15 am Post Subject:
Hi,
You have the option of swapping your policy with another one through your carrier or else get a fresh one through another carrier.
Whatever be the case, make sure that you take into consideration the possibilities of more returns against the expenses in connection with swapping policies. You may need to do a good bit of window shopping in order to know the best rates and also consult with your agent. If you choose you may also talk to another independent agent.
Evan
Posted: Sat Oct 04, 2008 07:23 am Post Subject:
Yes, it would truly be a better idea to to change policies in case you're not satisfied with the current one. Many of us are just not satisfied with the rate of returns. But often do we commit the mistake of buying a policy that gets us a higher return at the expense of a higher cost. The commissions that we need to pay to your new agent as well as the transaction charges would often accumulate to a certain amount that may even exceed the margin of returns that we gain with the new policy. So, we should calculate the benefits very carefully over here. Plasticmind
Posted: Sat Oct 04, 2008 07:28 am Post Subject:
The commissions that we need to pay to your new agent as well as the transaction charges would often accumulate to a certain amount that may even exceed the margin of returns that we gain with the new policy.
Not only that...lets not forget the surrender charge that we pay for meeting the deferred costs of the company. More often we do pay this charge once we discontinue with a life policy. Isn't it!
Caromel_marquez
Posted: Sat Oct 04, 2008 07:37 am Post Subject:
My friend..please don't forget one little thing, that whenever you shift in to a new policy you carrier may demand your going through another medical test. Its the most common thing to happen in case you're shifting to another policy from a different carrier. It could also happen when you are swapping policies under your current carrier. So, its time you think wisely! Mermaid-attitude
Posted: Sat Oct 04, 2008 07:53 am Post Subject:
Hey there...as you grow more...you'd certainly need to feed with more premiums if your policy is a new one. Insurance companies would make sure that you've not developed any medical conditions since the last renewal. They would also ask you to support your application with the proper documents. So, its better you get your medical certificates ready by then.
Thanks, Crossbreed
Posted: Sat Oct 04, 2008 06:57 pm Post Subject:
You may be able to switch your monies around but in the same family of funds - you can do this without charges, etc.
Posted: Fri Oct 03, 2008 06:20 am Post Subject:
Hi Life Martagent, please clarify the word ‘return'.
Is your policy the indexed one? Which type of fund you have chosen to invest your money?
Given the present market scenario, you can't blame the policy for not generating enough return on your investment.
However, the purpose of the life policy is not to generate return on it, but to cover the family's interests at the event of your unfortunate death. If you have bought enough coverage as to meet the expenses that the family may incur after your death, then may not need to shift the policy. However, if it's otherwise and id you can manage better coverage at more reasonable cost, you may think of switching.
~Jeremy
Posted: Fri Oct 03, 2008 07:49 am Post Subject:
Any protection plan you have in hand is the best policy. This is because you can't go back in time to get the policy at younger age.
I agree with Jeremy that the primary purpose of getting a permanent life insurance. You may like to find out if you have adequate insurance coverage for yourself and for your family members. Return is secondary concern.
Posted: Sat Oct 04, 2008 06:51 am Post Subject:
Hi Life Martagent, please clarify the word ‘return'.
Hey, I'd simply mean that rate of my policy returns..they are not good as per their competitors' rates in the market.I was just wondering if shifting to another one would be as good or could be even better for my future.
LifeMartagent
Posted: Sat Oct 04, 2008 07:04 am Post Subject:
See, I feel it would be a better decision to take into consideration the purpose for which you got this policy. It could have been for supporting your dependents with your death benefits. It could also have been to form a considerable part of the investment portfolio. So, its better to scrutinize all aspects that meet your long-term needs and then only take another step forward.
Regards, Arindam
Posted: Sat Oct 04, 2008 07:15 am Post Subject:
Hi,
You have the option of swapping your policy with another one through your carrier or else get a fresh one through another carrier.
Whatever be the case, make sure that you take into consideration the possibilities of more returns against the expenses in connection with swapping policies. You may need to do a good bit of window shopping in order to know the best rates and also consult with your agent. If you choose you may also talk to another independent agent.
Evan
Posted: Sat Oct 04, 2008 07:23 am Post Subject:
Yes, it would truly be a better idea to to change policies in case you're not satisfied with the current one. Many of us are just not satisfied with the rate of returns. But often do we commit the mistake of buying a policy that gets us a higher return at the expense of a higher cost. The commissions that we need to pay to your new agent as well as the transaction charges would often accumulate to a certain amount that may even exceed the margin of returns that we gain with the new policy. So, we should calculate the benefits very carefully over here. Plasticmind
Posted: Sat Oct 04, 2008 07:28 am Post Subject:
The commissions that we need to pay to your new agent as well as the transaction charges would often accumulate to a certain amount that may even exceed the margin of returns that we gain with the new policy.
Not only that...lets not forget the surrender charge that we pay for meeting the deferred costs of the company. More often we do pay this charge once we discontinue with a life policy. Isn't it!
Caromel_marquez
Posted: Sat Oct 04, 2008 07:37 am Post Subject:
My friend..please don't forget one little thing, that whenever you shift in to a new policy you carrier may demand your going through another medical test. Its the most common thing to happen in case you're shifting to another policy from a different carrier. It could also happen when you are swapping policies under your current carrier. So, its time you think wisely! Mermaid-attitude
Posted: Sat Oct 04, 2008 07:53 am Post Subject:
Hey there...as you grow more...you'd certainly need to feed with more premiums if your policy is a new one. Insurance companies would make sure that you've not developed any medical conditions since the last renewal. They would also ask you to support your application with the proper documents. So, its better you get your medical certificates ready by then.
Thanks, Crossbreed
Posted: Sat Oct 04, 2008 06:57 pm Post Subject:
You may be able to switch your monies around but in the same family of funds - you can do this without charges, etc.
You need to ask your agent.
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