Mark S
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What do you want the insurance to do for you? Why do you feel the need for insurance now as compared to six months ago? Has something changed? These are the first questions to ask yourself.
Now ask yourself, "Self do I want to pay off all my debts? Do I want my spouses income replaced, if so for how long? Does my spouse want or need my income replaced, if so for how long? Do we want the mortgage paid off? Do we want to be sure that the kids can go to college? Pay funeral?"
Any or all of these questions help to decide what you want and how much insurance you need. And all are asked by Primerica agents. Your needs are important to you and only you. No one else can answer them.
Any whole life policy has Cost of Insurance- typically annually renewable term for Universal and VUL policies and level term for whole life policies. All of these then invest the rest into the market one way or another. However, they DO NOT pass on what they make to you. There are rules attached to these policies also: Five to be exact. 1) There is no money inthe cash value for the first couple years or longer- see policy. 2) When it does earn money, you will receive 1-4% interest, sounds like a bank savings account. 3) You can take money out in a LOAN. YOUR MONEY!!! and they will charge you 6-8% on that money. 4) They can make you wait until six months to receive YOUR money. 5) Your survivors get to choose which they receive- face value of policy OR cash value. Some of these are on UL and VUL policies.
As to UL and VUL, as said before it is split two ways- cost of insurance which is cheaper when younger and cost in policy ALWAYS rises each year) and cash account. The BAD part is at a certain point, right around twenty years, the cost of insurance equals the amount you pay in premiums. The following year, without telling you, they take money out of your cash account to pay for the premiums. This continues to happen. Your policy will self destruct. Your policy even tells you when you will have NO insurance. Leaving no cash value and no insurance.
So do I recemmend term or whole life to my clients? I will always and only recommend term insurance and investing money in mutual funds. You can make far more for yourself than what an Insurance company will make for you. And, should you die in the term of the insurance, your survivors will get BOTH face amount AND money invested in mutual funds.
Please call your local Primerica agent. He/she will conduct a brief survey and will help get you started. |
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mbrcatz
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Go with a local, independent agent, who can give you a variety of quotes and options (ALL with A rated companies!), to see which options meet YOUR GOALS at the lowest rate.
Don't buy over the internet. |
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brian c
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My first question is - why do you think you need life insurance? if you are single then there is no reason to get it, married with children, yep you need something in the untimely event of your death.
next, there are many kinds of life insurance, of which the agent will try to sell you. The cheapest and best kind is called 'term' life insurance, anything else, and the agent is making more money off of you. so stick with term life insurance.
most insurances are the same - shop around till you get the best quote with a reputable insurance agent. |
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avaldreteiv
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Okay,
first of all, not all insurance policies are the same. Importance is to look for financially strong company's, the more A's the better. Aside to Termite... if Primeamerica is one of the largest insurance company's you know of... you didn't do your homework. I don't like to down talk other companies, but that is one of the worst! They didn't even make Fortune's 120 list. Also do not buy over the internet unless you want your claim to be paid via email!
But I digress, I don't know if you have already decided on the type of policy to go with, but buying term and investing the difference is not a strong plan... if you're going to follow that logic, you might as well rent an appartment and invest the savings on the mortgage. If you want to know what the different types of insurances that are availalbe and how they can be used... both term and permenate you can ask that question later. to answer your question directly, good companies have strong financials, a couple of things to keep in mind are the differences between Stock Companies (Prim-america, Metlife and others) and Mutual Companies (North Western Mutual, New York Life, TIAA-CREF). The main difference is who these companies answer to. The Stock Companies answer the Share holders first, board of directors next... and somewhere down the line is the policy holder (you). Mutual Companies are owned by the policy holders (think of them as the stock holders), so their decisions are going to be made in the best interest of the policy holder (you). I happen to represent one mutual company in particular, New York Life. They are a Fortune 78 company (Prim-americas parent company American Express is 79), and they were also ranked number 1 mutual life insurance company, just this year by Fortune. They have been around longer than just about any other insurance company, 162 years, they had over $15 Billion in surplus after they paid out their death, annuity and long term care claims (that is the amount they have left to pay future claims... ie yours)! They have the highest rating from all the rating companies, and they don't make rash decisions based on what is going on in the stock market, but what will allow them to pay their obligations in the future, when your family needs them most. Would I recomend them, absolutly! Indepent agents are good for finding you cheap insurance, but if you want a solid insurance company to back your insurance policy, I would go with New York Life Insurance Company... it may cost you $10 a month more, but you don't have to worry about who is going to owe you money in 10, 20 or 100 years + from now... the policy will always be with New York Life.
Okay, I'll get off my soap box for now. |
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Nebraska debtbuster
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Alot of good answers here, but one thing you must remember... do not buy any cash value insurance, because they use your money to find a better rate of return, while telling you that your money is generating a great rate in the policy... do this.. BUY TERM AND INVEST THE DIFFERENCE! Honest. I know what I am suggesting. The cash in that policy is what I call cash SURRENDER value. If you cash your policy in after about three years, then you lose what is built up. Also, the first two or three years ...all the money you paid into, is gone. absolutely gone reason? commissions, insurances costs in other words they prety much kept all your premiums for those few years.
thanks |
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Termite
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First off remember what life insurance is for. It is to replace the income of a breadwinner. When you are young and have liabilities, you need as much coverage for the least monthly premium. Then once you are in retirement (debts paid, mortgage paid, living on savings) you are self insured. Don't let people tell you that you need life insurance for your "whole life", because you don't.
Buy cheap term to cover your needs. Then save every bit of money you can for geting debt free and on track for retirement.
I have my coverage through Primerica Financial. They are one of the highest ranked life insurance companies in the nation and sell more term insurance than any other company (they don't even sell that other crap), and they don't have a "war clause" in their policy which bailed alot of life insurance companies out of 9/11.
They even have a 35 year term available.
Just to clarify. Primerica is owned by Citigroup (#1 on Forbes Global and Fortune 500), which tells me the person below doesn't know a thing about our company yet he is quick to make false accusations. So it's safe to conclude he doesn't really know what he's talking about.
A better example of his house/apartment illustration is compared to whole life you would be renting the apartment and paying the mortgage but only getting one, because with whole life policies you rarely get both. If you die, they (the insurance company) keep the savings, if you borrow against it then die they subtract the loan amout from your death benefit even though it's your money in the account. |
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JB1977
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Check with a local agent. If you are single, then you need to see what permanent costs would be associated if something were to happen to you. Your burial, anything you may wish to leave as a gift to a charity, church or family member. These are examples of permanent costs. If you are married, then you have bigger responsibilities. There is no set-in-stone best plan. Term life is less expensive, but if you outlive the term, then you will have nothing. Whole life is permanent, it will never expire as long as you pay the premiums, but it is more expensive. A term life policy could be used to cover any temporary expenses, such as your lost income and college money for your wife and kids. A whole life policy could be used to cover any permanent costs. It won't be any cheaper than it is right now for you. If you wait to get your whole life when you are 50 or 60, when you "need" it, then it will be way more expensive then if you get it now. Also, you are probably healthier then you would be at 50 or 60. That helps too. But you really need to sit down with an insurance agent who will spend about 30-45 minutes finding out exactly what you need. Any agent who gives you a quote over the phone or e-mail without a sit down talk is not out for your benefit. Good luck. |
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Insurance
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A reputable company with good claim records. Life Insurance is for a long term commitment ,meaning your insurance companies must have a good financial record. Ask your local agents and compare a few insurers.
Some of the world largest insurers like Allianz, AIG, Aviva, Prudential have millions of policy holders with them. |
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