I'm not getting enough returns from my permanent life insurance. Should I shift to another policy? LifeMartagent
Total Comments: 21
Posted: Mon Oct 06, 2008 10:47 am Post Subject:
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.
Posted: Fri Oct 10, 2008 06:05 pm Post Subject:
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.
Posted: Sat Oct 11, 2008 07:01 am Post Subject:
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
Posted: Mon Oct 13, 2008 03:57 pm Post Subject:
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."
Posted: Mon Oct 13, 2008 04:03 pm Post Subject:
Wait a minute, I've had an epiphany!
If another agent has come onto the scene and suggested that you replace your policy (which isn't getting a very good return) with another policy (a new product he or she is trying to sell) this creates a whole new situation. It's called Twisting, Churning, or any one of a host of other terms having to do with illegal / improper replacement.
Posted: Sat Oct 25, 2008 08:13 pm Post Subject:
If money accumulation is your primary goal, Life insurance is not usually the best for your needs. Buy term and invest the difference will accumulate more money usually. However if you are protecting something with a perminant need... UL/WL is the best answer, and if this is a perm need your are protecting example Estate Taxes, Wealth transfer, then a term policy should never be used unless price is the ulitmate issue. Additionally if this is a policy for permanant needs, then the inside ROI on this product shouldn't be that much concern.
This is a prime example of why we need Insurance Professionals. Quality Educated Professionals to sit and answer questions like this.
Hope This Helps, feel free to pm me with additional questions
Thanks
Scott
Posted: Tue Oct 28, 2008 03:48 am Post Subject:
Hello,
Life insurance is actually a terrible place to invest. If this policy is for money accumulation ...CASH IT IN TODAY!!!!!!!!!. However if the policy is used for some type of permanant need, ie estate planning, wealth transfer, etc. Then I can agree that I would want the best performing plan available. Then also, if this policy is insuring a temporary need like mortgage protection, well I would say you need to buy term and invest the difference.
This simple question is prime example why we NEED Liscensed Insurance professionals. Not just some 1-800 number to call.
Thanks
Scott
Posted: Wed Nov 26, 2008 10:55 pm Post Subject:
Buying term and investing the difference is a valid argument but not always the right choice. Because of the the unique ability to barrow money tax free from a permanent policy, allows for some very interesting planning strategies.
To fully answer your question regarding return on a policy we would need much more information (including a few in force illustrations showing exactly the cost and guaranteed returns of your current policy). We would also need to know what your ultimate goal is (is it for retirement, education, estate protection, etc).
Posted: Sun Nov 30, 2008 05:54 am Post Subject: insurance
Well...........I just want to 'describe' ( in general..) what I am looking for. Some kind of Life Insurance that 'builds cash value', for my son. I have Life through the military, however....I am looking for a 'smaller' policy, for myself, as well. Something that would fit my budget ( low income). ALOT of people, on this forum, have given me good advice on where to research, etc. However....I guess I just haven't found something that 'works for me.'
Posted: Wed Dec 17, 2008 06:17 am Post Subject:
Hi InsInvestigator,
Some how I'd missed this post..
If this is the case, please send me the name and contact information for this agent so that I can have him/her arrested.
Now, I'm curious to know certain facts over here!
I've come across quite a few insurance policies that reflect good returns..and would thus allow the agents to present it that way. If things are like that how do you think you'd be able to get hold of such agents. The agents might well be cautious enough to avoid certain ways of presenting it in order to convey the message as also keep their actual intentions hidden. How would you prove the allegation against them and get them arrested then?
Posted: Mon Oct 06, 2008 10:47 am Post Subject:
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.
Posted: Fri Oct 10, 2008 06:05 pm Post Subject:
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.
Posted: Sat Oct 11, 2008 07:01 am Post Subject:
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
Posted: Mon Oct 13, 2008 03:57 pm Post Subject:
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."
Posted: Mon Oct 13, 2008 04:03 pm Post Subject:
Wait a minute, I've had an epiphany!
If another agent has come onto the scene and suggested that you replace your policy (which isn't getting a very good return) with another policy (a new product he or she is trying to sell) this creates a whole new situation. It's called Twisting, Churning, or any one of a host of other terms having to do with illegal / improper replacement.
Posted: Sat Oct 25, 2008 08:13 pm Post Subject:
If money accumulation is your primary goal, Life insurance is not usually the best for your needs. Buy term and invest the difference will accumulate more money usually. However if you are protecting something with a perminant need... UL/WL is the best answer, and if this is a perm need your are protecting example Estate Taxes, Wealth transfer, then a term policy should never be used unless price is the ulitmate issue. Additionally if this is a policy for permanant needs, then the inside ROI on this product shouldn't be that much concern.
This is a prime example of why we need Insurance Professionals. Quality Educated Professionals to sit and answer questions like this.
Hope This Helps, feel free to pm me with additional questions
Thanks
Scott
Posted: Tue Oct 28, 2008 03:48 am Post Subject:
Hello,
Life insurance is actually a terrible place to invest. If this policy is for money accumulation ...CASH IT IN TODAY!!!!!!!!!. However if the policy is used for some type of permanant need, ie estate planning, wealth transfer, etc. Then I can agree that I would want the best performing plan available. Then also, if this policy is insuring a temporary need like mortgage protection, well I would say you need to buy term and invest the difference.
This simple question is prime example why we NEED Liscensed Insurance professionals. Not just some 1-800 number to call.
Thanks
Scott
Posted: Wed Nov 26, 2008 10:55 pm Post Subject:
Buying term and investing the difference is a valid argument but not always the right choice. Because of the the unique ability to barrow money tax free from a permanent policy, allows for some very interesting planning strategies.
To fully answer your question regarding return on a policy we would need much more information (including a few in force illustrations showing exactly the cost and guaranteed returns of your current policy). We would also need to know what your ultimate goal is (is it for retirement, education, estate protection, etc).
Posted: Sun Nov 30, 2008 05:54 am Post Subject: insurance
Well...........I just want to 'describe' ( in general..) what I am looking for. Some kind of Life Insurance that 'builds cash value', for my son. I have Life through the military, however....I am looking for a 'smaller' policy, for myself, as well. Something that would fit my budget ( low income). ALOT of people, on this forum, have given me good advice on where to research, etc. However....I guess I just haven't found something that 'works for me.'
Posted: Wed Dec 17, 2008 06:17 am Post Subject:
Hi InsInvestigator,
Some how I'd missed this post..
If this is the case, please send me the name and contact information for this agent so that I can have him/her arrested.
Now, I'm curious to know certain facts over here!
I've come across quite a few insurance policies that reflect good returns..and would thus allow the agents to present it that way. If things are like that how do you think you'd be able to get hold of such agents. The agents might well be cautious enough to avoid certain ways of presenting it in order to convey the message as also keep their actual intentions hidden. How would you prove the allegation against them and get them arrested then?
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