What are the Problems Lying in the Life insurance Industry that needs to be Discussed?

1) People are slowly getting educated about the difference between term and cash value life insurance. Agents love to sell any type of cash value life insurance over term because premiums are very high, therefore, commissions are very big.

2) The average age of a life insurance agent in most companies is around 50 years old. Companies lack the ability to train and develop new agents. If companies don't go on a massive recruiting spree, there won't be enough sales agents to sell life insurance.

3) There are less and less life insurance companies out there. 30 years ago, there were about 2000 life insurance companies. Now, its around 900. What happen? Many companies were bought or sold out to other companies or they merge. Some went bankrupt or had financial instability.

4) Life insurance is not a popular topic. No one likes to talk about it, let alone, be bothered by pushy life insurance agents.

5) 99% of life insurance companies don't really care what type of life insurance that people buy. They only care that it gets sold, no matter how unsuitable that life insurance is for that client. If all the life insurance companies truly care about the client, they would all sell term insurance and let the client decide where to save money (either in IRAs, CDs, money markets, etc.)

Two significant problems in the industry are 1) a lack of consumer awareness and 2) a few unscrupulous agents who take advantage of problem #1.
Generally, people who've been in the insurance industry for a long time are knowldegable & honest. They've often invested many years & a lot of $$ in their education, training, and experience. They've built up a business over many years, honestly and with a lot of effort; they wouldn't want to risk their livelihood by being unethical or by dealing with a disreputable insurer.
(Most insurers are covered to some extent by a state guarantee fund; it's rare that an A-rated company would fail, anyway.)
There are other agents, though, who spend a few years in the industry after failing as used car salesmen, collections agents, retail sales, etc. They tend to be ignorant about taxes, law, finance, and other topics that a reputable agent or planner should be well versed in.
They'll also want a sale above everything else, and whether it harms their client or the insurance company won't matter to them. They tend to get caught, and will frequently exit the industry at some point.
Consumers should also take the time to figure out what their needs are, to read, review, and question their agent about their policies, and to spend some money. If you delay buying insurance until you're older, obviously it will costs you more - if you're able to buy it at all. Insurers, like the rest of humanity, need to make money. Just like you can't buy homeowners if your house is on fire, you won't be able to get life insurance coverage if you're elderly or seriously ill.
Buying cheap term life will be, generally speaking, inadequate for people who need life insurance proceeds for burial or estate costs.
About 2% of term life is ever collected - you should buy enough term life to cover your mortage and the loss of your income due to premature death, but it's unlikely to be there when your elderly.
Get a little whole or universal life that you can keep as long as you want; so that your loved ones don't have to put thousands of dollars on their credit card for your funeral or medical costs. You'll often enough get what you pay for; would you skimp on a parachute to save money?
Find a reputable, knowledgable planner or agent who can help you- ask for references and about the agent's training, education, and experience. Don't buy anything you don't understand, but realize that you'll have to spend some money to get some coverage!!

most people dont have enough life insurance to pay for their current lifestyle. How can this be impressed upon the public without sounding like overzealous salepeople?

that life insurance is a big lie when you try to collect

The main problem lies that the person who puts in money does not get in time his dues. Their working is a bit different.
Once a transperancy come into effect the things will become clear

The problem is that when their company encounters financial problems and has no choice but to terminate their operations, plan holders will definitely have a hard time redeeming their instalments.
It's always that way; planholders would have to wait ages for their notice of availability of cheques to come.
I prefer just banking my money than letting it to someone else's insecure insurance company.

Biggest problem lies with the Life insurance company is no policy for old people at old age. People should have to invest in pension policy for their old age. When the pension period starts it is provided a fixed amount. Also pension holder have no right to close or tranfer the pension if he finds that the other insurance company is providing higher pension amount. Pension holder is not given any extra benefit except his pension amount through out the period.

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