When it come to life insurance there are many thing your agent doesn't want you to know! Especially where it would effect their bonuses and commissions. By keeping you dependent on them insures them of huge commissions and overrides. However the Internet has become the consumer true equalizer when it comes to insurance. Being Internet savvy could save you hundreds of dollars a year!
The best way to buy life insurance is to stay with the basics, with term life insurance. Term life is the type of life insurance that only pays if you die. Similar to automobile insurance in that you pay year to year and when you stop paying the coverage stops as well. However, term life insurance is so inexpensive due to greater competition. Also the Internet has made it easier to compare company rates from company to company.
Insurance agents hate to talk about term life insurance because there is very little profit for them to gain. Agents like to sell variable universal life and universal life. Variable universal life combines mutual funds and life insurance. Pitched as a great tax benefit if both are bought together but due to the huge sales commissions and continuing costs, it turns out to be a bad deal for the consumer.
Whole life used to be the most popular insurance sold since it builds a cash value and many use it as a savings avenue. But whole life premiums are high and agents love this because of the high commissions. A nonsmoker 25 yrs. old male would spend about $180 a year for $250,000 worth of term insurance but a whole life plan would cost approximately $2,000.
If you decide to get term insurance I recommend level- term which basically mean that the premium is guaranteed to stay the same for the number of years that you choose. You should buy coverage based on the years that you expect to work. When you decide to shop for term life insurance I recommend Cheaptermquotes or visit the insurance section of 2spendless! Also talk to an insurance broker like American Consultants Inc at 404-767-1072, if there are questions,either way will insure that you save.
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