by hummingbird » Wed Jan 16, 2008 02:52 pm
Can anyone explain what term life is and whole life. I wanna compare life insurance policies and know how to choose the best out of them. What is your opinion of either of them.Thanks
Posted: Thu Jan 17, 2008 05:04 pm Post Subject:
The rest of what? I tend to think of insurance agents as wanting only the commission on a big policy...lol sorry don't mean to offend.
Posted: Thu Jan 17, 2008 05:07 pm Post Subject:
Preferred Insurance Servi, are you sure you wouldn't like the opportunity to revise this statement?
Term life is superior to whole, universal or variable because its strictly life insurance.
Wouldn't you rather say something like, "Whole, Universal, and term life are three different products and the best one for you is the one that best fits your particular needs."
Then, when you came back and said,
It covers you for a specific amount of time or term. The other types cover you till you die.
I thought I was going to lose it. Yes, ladies and gentlemen of the jury; term insurance provides coverage for a specified amount of time. The other types cover you until you die. Therefore, if you want life insurance coverage until you die - whenever that might be - you might consider a permanent [versus term] type of plan. However, if you only want coverage for a specified amount of time - and not necessarily have the coverage when your heart stops beating, term seems like the way to go.
However they are riddled with ridiculous fees.
In your professional opinion, which fees (specifically) are the most ridiculous? What if we were to compare the fee structures between, let's say, an AIG term policy and the very same plan with a company life Primerica? Fortunately, I already know the answer to this question because I assisted in the prosecution of an agent from Illinois last year.
By the way, does your state's insurance code mention anything about defamation? Understand that in most states, this is a violation and is considered highly unethical. Because you are in a public forum, I thought I would bring these points to your attention and help you compare life insurance.
If you have any questions, feel free to go to my website.
Posted: Thu Jan 17, 2008 05:32 pm Post Subject: LIFE AGENTS
There is alot of life agents just looking to make money off the sale and you must watch out for that . Bottom line is if you have no life insurance then you need to get some and as far as term vs perm I myself have a term policy and the extra money the perm policy was gona cost me I put into an IRA i HAVE SEEN MANY AGENTS TRY TO SELL YOU A TON OF PERM INSURANCE WHEN IT WASN'T NEEDED
Posted: Thu Jan 17, 2008 06:23 pm Post Subject:
Hey Chuck007, good post.
You are absolutely right in that agents who are new, and often inexperienced, with things like a code of ethics, professionalism, repeat business, development of an agency, so-forth and so-on, often get caught up in the "hype" of making the sale.
These people go to work every day, check in with their branch manager, and either have their butts kicked for not submitting enough business or thier legs humped because they are on track to make conference. If you just can't get excited about being chewed out by an agency manager who, because he couldn't sell used cars, became a life insurance salesman I fully understand.
My point is that inexperienced agents often make pressure-based sales and that's where problems start. Agents misrepresent the terms and conditions of policies, lie about coverage and premiums, sell too much insurance and don't conduct a proper needs analysis. Thus, they'd never let you compare life insurance in a proper way. And they do it because they don't want to get yelled at when they go into the office.
Posted: Thu Jan 17, 2008 07:01 pm Post Subject: I agree
Your right on with that and its to bad that happens to often. Agent must do whats right for the insured and stop thinking about lining there pockets.In my area this agency insures 36% of the area and there is a good reason we do so.Its called do whats right for the person in front of you!
Posted: Thu Jan 17, 2008 10:41 pm Post Subject:
To InsInvestigator
I do not wish to revise any of my opinions. Thanks for your concern. Term is a better product, my opinion again. In regards to commission, you receive more commission on whole life policies. As far as defamation, I believe you should reread your post and watch your implications towards me. My opinion on Term Insurance over other types is supported by Jim Cramer and Suze Orman. Check it out.
Posted: Thu Jan 17, 2008 11:38 pm Post Subject:
Preferred Insurance Servi,
Thanks for the return post.
You are of course, entitled to your opinions. Those you have shared with us speaks volumes about your level of sophistication and professionalism.
The fact that you know a bit about the commission structure of life insurance means that you are, at least, familiar with the industry. The fact that you've tossed Jim Cramer's and Suze Orman's name into the mix means absolutely nothing.
Let's run a little test; go into any major search engine and type in "Whole life versus Term insurance" and see how long it takes for Cramer's or Orman's name to come up. My friend, Walter Updegrave with CNN has a couple articles in there but there is no Suze to be found.
Then type in "Life Insurance Fraud Investigator" or "Life insurance Fraud Investigations" and see who comes up. You see, I've been assisting in the prosecution of agents who misrepresent the terms and conditions of life insurance policies much longer than either Jim or Suze.
I'll admit that while I may not be quite the journalist Jim Cramer is, I know a great deal more about insurance law and agents who are prosecuted for defamation.
While your opinion is supported by Mad Money and Suze Orman, mine is supported by the New York State Supreme Court. Check it out.
Posted: Fri Jan 18, 2008 03:33 pm Post Subject:
To Insinvestigator
I don't understand why you feel the need to keep insulting me. Explain to me how insulting another person is sophisticated or professional. The original post asks for your opinion on term vs whole life insurance. What do you recommend?
Posted: Fri Jan 18, 2008 07:14 pm Post Subject:
Preferred Insurance Servi,
If you feel that I have insulted you, please allow me to publicly apologize for my actions. As you might be able to tell, I am very passionate about keeping honesty and ethical responsibility at the absolute forefront of every conversation (or business transaction) I am involved in. IF more agents felt as I do, 39.6% of every life insurance policy written in America since 1983 wouldn't be bad.
If I was asked for my opinion on this issue, I would say that there are advantages to term policies, ie mortgage protection, supplemental coverage that can be used with an overall financial plan involving a 401k, annuity, or other investment vehicles.
Whole and Universal life are much better options if one would like to have a life insurance policy in force when they die - no matter when that might be.
Do you realize there are more millionaires in America right now than at any other point in history? Because of the various lotteries, raffles, drawings, etc., the number of people whose net worth is in the 7-figure range is increasing at the rate of around 170-190 per week!
If you have already earned your CLU or ChFC designation, you'll know that advanced estate planning with term insurance is ludicrous. Because I am truly sorry for what I've done, I'll let you in on a little secret.
Suze Orman has a very large (I can't give you more than that) variable whole life policy with Mass Mutual. This plan has been placed in trust (probably a Q-Tip) and will undoubtedly be used to offset her estate's tax exposure when she dies. Because of her choice of lifestyle, she will [probably] never have a husband with which she could excercise her marital deduction option allowed by the IRS.
There are advantages to each plan and you should consult a financial professional to determine which one is right for you.
Posted: Fri Jan 18, 2008 07:35 pm Post Subject:
You may also want to consider buying a term life insurance policy for your short term needs of between 1-30 years, and purchasing a small permanent life insurance policy to provide you with lifetime coverage to pay for your final expenses.
Then, also consider putting money into your 401K and shorter term savings plan.
Depending on your age, term life insurance may be able to provide a large amount of coverage at a lower cost, when compared to permanent life insurance.
Make sure you consider the financial strength rating of the life insurance company you choose, as well as the customer service, and any complaints on file with the Department of Insurance in your State for the life insurance company.
Also, compare rates and plans from several carriers before choosing a plan. You can use the yellow pages to find a local life insurance agent, call a friend or family member for a referral, or compare quotes online from a life insurance quote service.
There are many good sources of information available for life insurance, including wikipedia.
Add your comment