which type of life insurance is the best value?

Submitted by murph on Fri, 07/25/2008 - 02:47

the best value on life insurance

Posted: 25 Jul 2008 03:48 Post Subject:

(is there any way to move this to the life insurance forum?)

Hi Murph

The best value depends on your situation. Term is not a good value if you want an estate planning solution. Whole life is not a good value if you want cheap insurance for ten years. Universal life is not a good value if you want the most guarantees. See what I mean?

In general:

Term insurance is good for those looking for a lot of insurance at a low rate for a defined period of time (ie 10 or 20 years). Families looking for income replacement or coverage for their mortgage and debts will likely find term insurance to be a good value. As will a business owner looking to cover his debts in the event of his death.

Permanent (whole Life) Insurance is good for those looking for long term certainty and guarantees. Some seniors will like this plan. Some business owners looking for split dollar life plans will like this plan. Some parents will buy this plan on the life of their children.

Universal Life Insurance is good for those looking for a very customizable plan with some control over how the cash portion is invested and some opportunity to adjust premiums over time or some opportunity to overfund the plan for investment purposes.

There are hundreds of different ways to structure life insurance and there is no best value for everyone. In general term would be considered best value by many consumers due to its low cost per thousand.

I hope that helps. And I hope my tone isn't too much like I am lecturing or talking down!

Ontario Broker

Posted: 25 Jul 2008 11:15 Post Subject:

(is there any way to move this to the life insurance forum?)

I've done it for you :D

Posted: 05 Aug 2008 03:28 Post Subject:

Ontario Broker is right. The value of insurance depends on the need of the person. There are many types of insurance that cater to the needs of every individuals. You should determine the need so that you will know what is the best type of insurance you should get.

Income, age and value of money are some things that needs to be considered in buying an insurance policy. You should determine the need. In doing so, you will know the value of insurance you will get.

Posted: 10 Aug 2008 03:47 Post Subject:

Thanks for the info. I am just starting to sell life and health an needed to know what was best for my customers.

Posted: 12 Aug 2008 04:58 Post Subject:

You're welcome murph. That is good that you are trying to sell for the best benefit of your clients. We cannot deny the fact that there are other agents who sell life insurance only to get a huge amount of money but does not really care on the need of the client.

You can look for other tips on this forum. I am sure that there are so many members who are very willing to answer your questions regarding insurance.

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