Comments on: What Type of Life Insurance Is “The Best?”

By: Marita

Marita — Mon, 27 Jun 2011 15:17:43 +0000

My father had a term life policy. He lived until age 78. When he went into a nursing home 4 months before he died in 2000, my mother ended up having to cash in his IRA so that the government wouldn’t seize it to pay for his long term care (they had no ltc insurance), and when he died, she was left with $2,000 dollars from his term policy (because the benefit had dwindled as he aged), and was forced to give up his NYC Police pension (they had turned down the annuity option), his federal pension was cut in half, and she had to give up one of their Social Security benefits – fortunately, she could choose to keep my dad’s, since it was more than hers, but the end result was that at the age of 74, her income was cut in half. She put all the money she had left from his IRA into an immediate annuity, and when she died six years later, she was upset that she didn’t have more of a legacy to leave to her grandchildren. As a result, my husband and I decided to get a whole life policy, because we want the guarantee that whoever outlives us will be taken care of. We have had people try to convince us that other plans are the way to go, but after watching my sweet mom struggle in her last years, I am taking no chances. I am just curious what your thoughts are.

By: a.kovar

a.kovar — Sun, 29 May 2011 16:18:22 +0000

I question your agents knowledge and honesty, frankly. looks like a lateral move with little or no value.

By: David C Lewis, RFC

David C Lewis, RFC — Wed, 25 May 2011 04:55:15 +0000

This is reaching the level of complexity such that the only way I can really walk you through this is if you wish to hire me as your consultant/coach. we would have to review your existing policy and a proposed policy from your agent and I could walk you through it with as much detail as you want (right down to the construction of the policy if you’re interested) and also perhaps tell you a few things that your agent may or may not tell you depending on how honest he or she is.

By: Jose luis

Jose luis — Thu, 19 May 2011 21:17:19 +0000

I have a variable life insurance. I am 60 years old male in good health, no smoking and a bussines owner
I have some cash value in my policy, I have been recomended to roll over to an UL $1000,000 death benefit paying $1000,00 montly for 10 years. Cash value should be able to keep paying the policy until I die assuming a 6% return (historical value of the company for the last 30 or 40 years has been 7.5%)
I was told too to use my policy as a retirement tool even if I do not have the benefit of time by my side.
I can fund my policy heavy and 6 or sever years from now start making withdrawals.
Any opinion or advice will be greater appreciated.

By: a kovar

a kovar — Thu, 19 May 2011 15:38:54 +0000

I understand that term life insurance ever sold that 98% either converted to permanent or lapsed without paying a claim. insurance companies are not stupid

By: David C Lewis, RFC

David C Lewis, RFC — Wed, 11 May 2011 16:58:39 +0000

Well, a few things should be clarified here. The government regulates the maximum mortality charges that may be charged. However, even if they didn’t, I think insurers would price their products sensibly. You make money by keeping customers and charging a price the market will bear, not by charging a price no one wants to pay. By definition, you’ll make no money by doing that. You can know how much the insurance agent gets paid by simply asking him. In fact, even if the agent lies about his pay, you can still know the cost index of the policy, so costs are not hidden even for whole life. Aside from that, you can know the internal rate of return by doing a few calculations or asking the insurer how your policy works (or talking to an agent who is willing to educate you). This last piece of information gives you everything you need to know about what the policy costs and is actually easier to obtain than some of the figures you need from a mutual fund company.

By: Joseph@TermLifeInsurance.com

Joseph@TermLifeInsurance.com — Wed, 04 May 2011 05:10:21 +0000

I would agree with you David, term life insurance is generally the cheapest type of policy out there but that doesn’t always mean its the best for everyone.

By: Bryan

Bryan — Tue, 15 Feb 2011 06:53:28 +0000

Those are some very well written facts, totally agree.

By: David C Lewis, RFC

David C Lewis, RFC — Tue, 08 Feb 2011 17:04:43 +0000

@ a Kovar–That’s because they are a mutual company focusing on dividend paying policies.

By: a kovar

a kovar — Tue, 08 Feb 2011 16:56:00 +0000

New york life for one do not offer index life!