YoHan D. Man
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Per your life insurance question:
It depends on the "kind" of insurance you have. If you are in good health and you currently have a "Whole-life" or a "Variable-life" insurance policy, you are paying enormous fees and very little is going towards the principle policy amount. You were probably told that you could use your policy as a savings account yielding about 2-5% on return (After you have paid a certain amount to cover the fees before savings kick in. That could take 2-4 years before you begin generating savings at the above-mentioned rate. Remember, inflation is operating at 6-8%, so you are losing. Per your (Good) health, it might be wise to look into "term-life" insurance. You will pay 1/3 of the fees for the same coverage amount you're paying now and will have the coverage ranging from 10-30 years (depending on your needs). With the remaining balance you were paying, you could invest it in a good growth mutual fund at 12% interest gain. Here, you get the protection you need and saving yourself huge chunks of money by not paying fees.
Check with your Insurance broker for more info. Remember, Insurance Brokers get bigger fees & commissions for selling whole & Variable life policies.
If you are in poor health and considered to be un-insurable, keep your current policy. Protection is the key. If you have options, get answers and exercise them. I am not pimping any particular insurance group, but Zander did treat my family well and are counciling us with the heart of a teacher; not a sales person.
Hope this helps.
YoHan D. Man |
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rxing
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you have to get it in writing, if it's term I dont think it's a big deal, remember to see if the company is legit, first and call BBB If you have NY life today,and switch to Joe's life insurance is joe's known for paying out benefits. Also call your insurance and let them try to match. |
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great_and_mighty_adam_levine
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If it's term life, maybe. However, there are some considerations.
First, term life prices have been going down, so its likely you can get a better price than you used to.
But, be careful. Sometimes the price will be lower because the term is shorter. This isn't necissarily a bad deal, but shorter term should be cheaper. This is just like trading in your Mercedes for a Chevy. You get money, and it may not be a bad deal, but it's a downgrade.
Also, most insurance companies have perks that come into effect after two years in force. Typically, after two years in force:
1) They cover suicide. Keep in mind that even if you aren't planning on committing suicide, they may investigate any accidental death, try to determine that its suicide, and hassle the beneficiary. The beneficiary may have to sue.
2) They can't challenge the claim unless they can prove that you committed intentional fraud (not just a mistake). That's very difficult to prove.
If you file a claim in the first two years of a policy, expect an investigation.
-->Adam |
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Hadley
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It depends on the type of policy and what your needs are.
Term life insurance policies have been declining in price over the last several years, so you may be able to find even lower rates on your own through efinancial at https://www.efinancial.com/smartquoteefc.aspx?source=389-777
If the agent wants you to change whole life insurance policies, this may be motivated on the agent's part to make more commissions from you.
Whatever you do, make sure you are accepted for the new policy, before you cancel the existing policy. That way, if for some reason the new life insurance company does not accept you, there is still coverage in place.
But, make sure to compare quotes online for yourself, because you may be able to find even better rates than what the agent is quoting you.
I hope that helps! Best of luck to you. |
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J
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Some care needs to be taken. It used to be it never made sense to cancel one life insurance policy and take out a new one. The reason was that since you would be older the premiums would be higher. Also, non term policies might build cash value and/or pay dividends and the older the policy the more cash value and better dividend.
Recently, life expectancy has grown and competition is such that new term policies are often very much cheaper than older term policies. Since term policies don't have cash value or dividends it is something to look into. There is one advantage of the old policy - usually suicide isn't covered during the first two years and if you misstated anything on the application e.g. age or health the company has 2 years to challenge it. My info is a few years old but I think it is valid.
One way to tell if the agent is on the level is to read the application. There usually is a question about is this new policy replacing another policy. Often agents will fill out the application and check the box saying it isn't to replace other insurance. That will give you a clue as to whether or not something is fishy. Make sure to check the box with a yes. If the new policy is not to your advantage complain to the insurance company- having that box checked correctly will support your argument - why would you give up an old policy if it weren't to your advantage.
One final point - agents usually get 55% of the first year's commission. Subsequent years pay them much less. So they have an incentive to sell you a new policy. |
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mbrcatz
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Well, if it's a whole life policy, the agent gets 95% commission the first year. So he's going to try to switch you every few years, to keep making money off of you.
It's called "churning" and is unethical, but a lot of agents do it anyway.
Meanwhile, you ALSO have to "run the numbers", and reevaluate your insurance goals. I know, that's not an answer. |
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