- Personal Finance
Choosing Life Insurance: Consult with a professional
Always Consult a Real Professional
A Hub about life insurance was posted recently, specifically, Universal Life policies. The article was an attempt to garner Google ranking and contained dangerously incorrect information about Universal Life insurance and the insurance industry in general. The article could very easily mislead the reader.
Licensed life insurance agents use a set of criteria to help clients make decisions about coverage needs and annual premiums which fit into the budget. This process, called a Needs Analysis, requires a life insurance agent to gather pertinent information from the client in order to determine what the personal and financial motivations for buying the policy are. Many factors go into the Needs Analysis, including budget requirements, health of the clients, risk tolerance and much more.
For some clients, Term Insurance is the obvious solution for many reasons. Other clients may have complicated financial situations for which they use various forms of life insurance policies to fund business transactions or secure debt. "Buy Term and Invest the Rest" is a common mantra of agents who recommend selling more affordable term policies without a lot of financial planning as part of the process. The policies are relatively simple and for young, healthy clients, very affordable in the early years. As the client ages, these policies may become unaffordable and some do not offer a return of premium at the end of the term. Choosing life insurance policies is a very personal endeavor and requires the ethical dedication of an agent to present all the options to her client.
Children Need Life Insurance Too
I disagree with the (reworked) article and was especially shocked to read that the online writer suggested that children do not need life insurance coverage. Children need life insurance for many reasons, not the least of which is that a parent who loses a child to death may understandably need to take several months or years away from work to deal with grief. Twenty or thirty thousand dollars may be enough in some cases to pay for funeral expenses and to keep the house payment made during extended grieving periods.
Another reason for children to have life insurance is to guarantee coverage. The idea here is to purchase insurance when the child is young and healthy--making it very affordable in the beginning. If, in the unfortunate event the child is diagnosed with a terminal or debilitating illness which makes them un-insurable, the coverage is already in place and cannot be terminated by the insurance company (as long as premiums are paid).
Because most real agents value their business reputation and the long-term relationships with clients, many of whom are friends, agents are sensitive to articles that incorrectly paint an entire industry as deceitful and predatory, not to mention misleading the public on policy types and the need for life insurance.
Insurance is an industry rife with opportunities for fraud and deceit, without a doubt. It is also one of the most heavily regulated industries in the Country. If the writer of the inaccurate and grossly misleading article were actually a life insurance agent, he would know that insurance professionals consider it a duty to clients and to the industry, to stay informed, keep client’s needs above all else and to avoid the pitfalls of the ‘easy’ solution. Long term planning takes time, energy, and education, an absolute essential in serving the needs of life insurance clients.
"...For some clients, Term Insurance is the obvious solution for many reasons. Other clients may have complicated financial situations for which they use various other forms of life insurance policies.."
Please be aware that in spite of incorrect information being written for the sole purpose of making money with ad clicks, using a life insurance agent DOES NOT increase the cost of your policy. Rates are based on very complicated algorithms and do not include the cost of paying agent commissions. Please only use the advice of knowledgeable, licensed insurance agents in your State. - Licensed Insurance Agent -
Writers use Life Insurance as SEO Feed
Online writers who have little actual experience or knowledge about life insurance: Please be careful what you believe when reading advice written (reworked) by internet marketers whose income is derived from keywords and tags. I have seen statements that would fall into dangerous legal categories by writers who are clearly not licensed to sell or advise about life insurance.
Life Insurance Agent~
Have you witnessed life insurance as beneficial after a loss?
- Life Insurance - Money 101, Lesson 20 - Money Magazine
Money's guide to life insurance: What you need to know about life insurance, including types of insurance policies, and deciding on how much coverage you need.