Category Archives: Life Insurance
One big decision to make when buying life insurance is how much coverage you need! If you go for too much then you are wasting money, but if you don’t buy enough, then you or your dependents could be in trouble if something happens. Therefore, there is no easy answer, except that as your responsibilities increase, make certain you have enough coverage for them.
Some people get confused between insurance and making investments, whereas these different needs should be kept separate. When related to the type of life insurance you should buy, the indications are to buy term-life and invest the rest. Looking at this question from another perspective, is to review your individual circumstances.
People discover that the purchase of a life insurance policy at the right price to be either a very simple or a complicated procedure. In certain circumstances, the process is not helped by the insurance industry being an extremely competitive business, with sales persons motivated by earning commissions, sometimes their only source of income.
The insurance company, from which you buy your life insurance, pays a substantial commission for your business. It could mean as much as 80% of your first annual premium is destined for the agent. With whole-life premiums significantly more than those for term-life, agents naturally earn more money selling a whole-life policy to you. Therefore, it is not surprising that they will try to influence your buying of this type of policy.