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What's the difference between term life insurance and whole life insurance? I'm told you'll save a bundle by taking term life insurance instead of whole. I don't want to have too little and be underinsured, but I don't want to be paying over the odds either.
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Thanks greenmachine! I understand better now. Whole I can't decide about. I see how the stock market has nosedived the same as everyone else does. Do I want to be counting on that for a good return?
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I was in the insurance business for many years and have a bit of experience and knowledge about this.
Get LI if you have a need for it. Get only the amount and kind of LI that you need. Cover yourself with LI to reflect what your loved ones will need to replace your income until they are old enough to earn a living (18?21?) on their own.
Your needs may not reflect what the LI salesman says you "need". ALWAYS remember that that salesman will receive a commission that is based on your first year annual premium in an amount of up to 100%, depending on the product being "sold." A WL, UL or VL* policy generates more annual premium and the agent is paid at a higher % rate on these policies than term insurance, so they generally will try to get the sucker, err customer, to sign up for them.
Term insurance and group life insurance should always be considered as a preference over WL, UL, or VL. Always!
* WL=Whole Life, UL=Universal Life, VL=Variable Life
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Micharch I apologize for missing your reply before today. Thanks for helping me through this maze! I'm very grateful. :) About the commission: doesn't the salesman have to declare that in some way when you talk to them? I could be getting muddled here I admit, only I thought there was a legal obligation to reveal that.
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About the commission: doesn't the salesman have to declare that in some way when you talk to them?
No, and they are usually trained to not let you have the slightest idea what they are taking home to Mama. If most clients knew what the first year's commission was on LI policies, they would probably not "sign on the line which is dotted."
During the short time that I spent in LI sales, when asked about how much we were going to make on a sale I would say~ "I have no idea Mary. But, what's important is that you are now covered and your family is now protected because you have decided unselfishly to provide for them." (Of course, I had calculated to the penny, exactly how much of that annual premium that I would be taking home to Mama.)
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I read on MSN this article talking about this insurance that gave places to try. Are they worth a shot, micharch?
Another type of protection you may want to consider is life insurance, but only if you have children or if someone else is financially dependent on you. If you don't have dependents, you don't need life insurance. If you do, the type you should buy is called term insurance, which is relatively inexpensive. There are several services that will scan their multicompany databases free of charge and mail you a list of some of the least expensive policies. Try the Wholesale Insurance Network (WIN) (800-808-5810), Quotesmith (800-556-9393), SelectQuote (800-343-1985), and Termquote (800-444-8376). One warning: If you deal with a life insurance agent, be prepared to hear a big pitch for a type of policy known as cash value life insurance. Ignore it. While it's more profitable for the agent, it's probably nota good deal for you.
There's more tips in it.
http://today.msnbc.msn.com/id/30154651/
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Are they worth a shot, micharch?
Sorry, I can't recommend them one way or the other. Why not (?), as long as it does not cost you anything to investigate them.
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About the commission: doesn't the salesman have to declare that in some way when you talk to them?
No, and they are usually trained to not let you have the slightest idea what they are taking home to Mama. If most clients knew what the first year's commission was on LI policies, they would probably not "sign on the line which is dotted."
During the short time that I spent in LI sales, when asked about how much we were going to make on a sale I would say~ "I have no idea Mary. But, what's important is that you are now covered and your family is now protected because you have decided unselfishly to provide for them." (Of course, I had calculated to the penny, exactly how much of that annual premium that I would be taking home to Mama.)
I think I've fell for something like that in the past LOL. I can't really grudge sales tactics. Salesmen are doing their best to provide for their families same as the rest of us. If we don't educate ourselves, shop around and ask questions, we're as much at fault I guess.
©2009
This is the Smart Money site's information on that, cookiefan.
http://www.smartmoney.com/personal-finance/insurance/term-or-whole-life-...
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