Don't Change Your Life Insurance Policy Until You Read This
As we all know, there are a lot of people out there that pretend like they have your best interests in mind but they are really just looking to line their own pockets. This goes for life insurance agents too. So far in my career, I have only worked and done business with trustworthy insurance agents, but we all know, as with every occupation, there are the ones who take advantage of our lack of knowledge.
If you are approached by a life insurance agent and asked to consider canceling your current life insurance policy in order to purchase a replacement policy there are a few things you should know first.
What agents typically do in a change like this is take the cash value of the current life policy and use that to buy more insurance or obtain a new policy. Sometimes the decision to replace an existing life insurance policy may be a good one, but not in every case. There are warning signs and considerations that you should learn first before changing your life insurance policy.
This is article is very informative. Always seek professional help before making any changes in your financial situation.
Why would you ever recommend that someone take out a loan on a life insurance policy. You are not educated yourself as to the problems than loans create in a life insurance policy….It is sad but if you borrow your own money and don’t pay the loan interest back your loan increases and eventually drains all the cash value, hence you lose your coverage to borrow your own money. One heck of a liquid option. What about first generation UL’s that were sold in the 1980’s that are collapsing left and right out there in the industry. Why in the world would you keep that if you can transfer your cash value pay the same premium and purchase a second generation UL with guarantees to age 100. If someone listened to you, if their loan rate was lower they should let their policy lapse and lose all the cash value. What about all the garbage Variable first generation that were pushed and scammed down consumer’s throat that were completely unsuitable. How about a policyholder paying 10,000 pr yr for 20 years= 200,000 in premiums for only 54,000 cash value, as a result his premium quadrupled because those 200k in prem never got close to 12% pr yr every year. Preserving their coverage, guaranteeing their old premiums for life with cash value accumlation in the new policy speaks enough volume. How about the BS “vanishing” premium policies that are due to lapse. In regards to your loan rate, you explain to someone how their 25,000 loan on 30,000 cash value caused their 100,000 policy to lapse only four years later. The 25,000 loan at 6% interest was $1,400 in loan interest alone plus premiums due in one year. The insured’s loan bill in the second year was 6% of 26,400 and the net cash value of 3,600 was only earning 4%. As this continued three more years, gone and evaporated was their life insurance. You talk on your previous page of your company charging lower rates to new consumers, yet continually over charge them yet spew this. Learn the industry and educate yourself. I have seen many consumers in tears at to how their current policies’ are performing, and your philosophy like most others would keep these consumers their and in the dark