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 Posted: Fri Oct 03, 2008 5:02 am Post subject: Returns on permanent life insurance.. |
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I'm not getting enough returns from my permanent life insurance. Should I shift to another policy? LifeMartagent
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LifeMartagent
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| Posted: Fri Oct 03, 2008 6:20 am Post subject: |
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Hi Life Martagent, please clarify the word ‘return'.
Is your policy the indexed one? Which type of fund you have chosen to invest your money?
Given the present market scenario, you can't blame the policy for not generating enough return on your investment.
However, the purpose of the life policy is not to generate return on it, but to cover the family's interests at the event of your unfortunate death. If you have bought enough coverage as to meet the expenses that the family may incur after your death, then may not need to shift the policy. However, if it's otherwise and id you can manage better coverage at more reasonable cost, you may think of switching.
~Jeremy |
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JeremyHolter
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| Posted: Fri Oct 03, 2008 7:49 am Post subject: |
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Any protection plan you have in hand is the best policy. This is because you can't go back in time to get the policy at younger age.
I agree with Jeremy that the primary purpose of getting a permanent life insurance. You may like to find out if you have adequate insurance coverage for yourself and for your family members. Return is secondary concern.
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Xoseph
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| Posted: Sat Oct 04, 2008 6:51 am Post subject: |
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| Quote: | | Hi Life Martagent, please clarify the word ‘return'. |
Hey, I'd simply mean that rate of my policy returns..they are not good as per their competitors' rates in the market.I was just wondering if shifting to another one would be as good or could be even better for my future.
LifeMartagent
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LifeMartagent
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| Posted: Sat Oct 04, 2008 7:04 am Post subject: |
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See, I feel it would be a better decision to take into consideration the purpose for which you got this policy. It could have been for supporting your dependents with your death benefits. It could also have been to form a considerable part of the investment portfolio. So, its better to scrutinize all aspects that meet your long-term needs and then only take another step forward.
Regards, Arindam |
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ArindamSenIndies
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| Posted: Sat Oct 04, 2008 7:15 am Post subject: |
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Hi,
You have the option of swapping your policy with another one through your carrier or else get a fresh one through another carrier.
Whatever be the case, make sure that you take into consideration the possibilities of more returns against the expenses in connection with swapping policies. You may need to do a good bit of window shopping in order to know the best rates and also consult with your agent. If you choose you may also talk to another independent agent.
Evan |
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evan
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| Posted: Sat Oct 04, 2008 7:23 am Post subject: |
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Yes, it would truly be a better idea to to change policies in case you're not satisfied with the current one. Many of us are just not satisfied with the rate of returns. But often do we commit the mistake of buying a policy that gets us a higher return at the expense of a higher cost. The commissions that we need to pay to your new agent as well as the transaction charges would often accumulate to a certain amount that may even exceed the margin of returns that we gain with the new policy. So, we should calculate the benefits very carefully over here. Plasticmind
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Plasticmind
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| Posted: Sat Oct 04, 2008 7:28 am Post subject: |
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| Quote: | | The commissions that we need to pay to your new agent as well as the transaction charges would often accumulate to a certain amount that may even exceed the margin of returns that we gain with the new policy. |
Not only that...lets not forget the surrender charge that we pay for meeting the deferred costs of the company. More often we do pay this charge once we discontinue with a life policy. Isn't it!
Caromel_marquez
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Caromel_marquez
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| Posted: Sat Oct 04, 2008 7:37 am Post subject: |
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My friend..please don't forget one little thing, that whenever you shift in to a new policy you carrier may demand your going through another medical test. Its the most common thing to happen in case you're shifting to another policy from a different carrier. It could also happen when you are swapping policies under your current carrier. So, its time you think wisely! Mermaid-attitude
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Mermaid-attitude
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| Posted: Sat Oct 04, 2008 7:53 am Post subject: |
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Hey there...as you grow more...you'd certainly need to feed with more premiums if your policy is a new one. Insurance companies would make sure that you've not developed any medical conditions since the last renewal. They would also ask you to support your application with the proper documents. So, its better you get your medical certificates ready by then.
Thanks, Crossbreed
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Crossbreed
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| Posted: Sat Oct 04, 2008 6:57 pm Post subject: |
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You may be able to switch your monies around but in the same family of funds - you can do this without charges, etc.
You need to ask your agent.
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LifeIsGood
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| Posted: Mon Oct 06, 2008 10:47 am Post subject: |
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There are a number of disadvantages to take up a new plan by dropping an existing plan.
In addition to incurring expenses such as transaction charges and commission to new agent, possible surrender charges and medical examination, there are also drawbacks like recommencement of suicide clause or cash value and other restrictive clauses that are found in newly issued policies.
Always think twice before making any change.
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Xoseph
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| Posted: Fri Oct 10, 2008 6:05 pm Post subject: |
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You cannot expect a high return from life insurance. Life insurance cannot make you rich, but it can provide you financial protection. Maybe you can get dividends but not that much.
In the question of shifting, I think it is better to just continue with that existing coverage of yours. Think carefully before making any decisions.
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joven222
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| Posted: Sat Oct 11, 2008 7:01 am Post subject: |
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Though the market indexed life insurance plans promise returns to the buyers but its not the actual purpose of purchasing life coverage. I go with joven, you may not get very high return from the life policy, since the entire premium amount don't get invested in the market. A portion of the premium paid goes towards covering the administrative expenses of the policy, then another part gets added to the death coverage and the rest amount gets invested in the market to generate returns. Hence, the amount of fund that actually gets invested in the market is very nominal.
However, if the coverage amount suffices your future needs then you may not wish to change the life policy.
~Jeremy |
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JeremyHolter
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| Posted: Mon Oct 13, 2008 3:57 pm Post subject: |
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I only read the first two or three entries in this post before the proverbial red flags rocketed skyward.
In the life insurance industry - everywhere - in every state - it is illegal to sell life insurance as an investment. The use of the term "Return" in this case indicates that someone may have thought their life insurance policy was going to supplement their retirement or investment portfolio in some way. Which also leads me to believe that an agent may have sold it that way. If this is the case, please send me the name and contact information for this agent so that I can have him/her arrested.
As Gary would say, " Period, end of story."
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