Do Not Buy Whole Life

Category: Finance, Insurance.

The majority of us are not rich. Last thing we need is to get taken for an expensive ride by a life insurance salesperson whom is nowadays cleverly hidden behind the title financial advisor.

Many people, live paycheck to, nowadays paycheck. There are laws to protect from the worst of cases, but you can save thousands and more by following these tips: Find out what your current limits are if you have insurance through your employer. This is not enough coverage. On average employers only provide$ 50, 000 coverage if they do at all. As a general rule you should have$ 250, 000- $500, 00 Educate yourself. Everything is negotiable.

Just like buying a car, you don t want to pay full retail price. Look up and compare whole and term life. You will see a wide range in prices for the same coverages. Do your self a favor and look it up on the internet. For instance Ameritas was less than 1/ 2 the yearly premium of Allstate and Met Life for the same coverages- that means a 50% + savings every year for the same coverage! Make sure you pick an A rated carrier that has been around a long time.

That amounts to thousands upon thousands of dollars saved in just a few years. Do not buy whole life! Whole life is insurance with a slight savings/ investing mix. Know that term is cheaper and a better deal. These slick salespeople get their big paydays when you sign up for whole life. Therefore, you won t see much in growth for 15- 20 years. Your first years premium and 3- 4% thereafter goes to commissions.

You would do 10X better with any good mutual fund. Its not- per the IRS its tax deferred, not tax free. Don t let them fool you with claims that your investments are tax free. And due to the extremely high commissions you won t ever see much growth. What a rip off! Just look up on the internet and see how many people amassed great wealth with whole life- you will find the answer is zero! Upon calling numerous experts, the only reason to have whole life is if you are 60- 65 or above, or if you are extremely wealthy and want to use it to pay your estate taxes when you die.

Suzie Orman will tell you the same- stay away from whole life! That is it from the worlds leading experts! If you are going to hire a financial advisor, hire a fee- based financial advisor. They want you to succeed and give them referrals. They will not push loaded funds and are truly interested in your benefit. This is how business should be done! You can find a financial advisor near you and they have to have top- notch qualifications.

There is only 1 place to go to find the best fee- based financial advisors in the country- The National Association of Personal Financial Advisors( NAPFA) www. napfa. org. Something you won t find with flighty, commisioned based advisors. Find out what your coverage is. So there you have it. Get educated- you can never have too much education( whether it be formal or informal) . And get a fee- based financial advisor. Do not buy whole life!

You will be glad you did!

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There are many vicissitudes in life. There is no certainty that all the changes in life will be favourable for us.