All Life Insurance Tips

Am I wrong to think that permanent life (cash value type) insurance is a major ripoff?

-Most premium goes to agent and company profit in the first few years. - stiff penalty for trying to get out of the trap in the first few years. This is a nasty trick. - ridiculous cost (profit of agent and company) for insurance protection - borrow using your cash value as collateral at high rate. (don't have to pay tax? Is it really a benefit when you are borrowing and paying company interest?) - earn guaranteed interest rate after they skim off hugh chunk from your premium. They never want you to notice how much they keep and how little your premium goes to cash value - agent likes to present term to perm conversion as a feature instead of a trap, which is what it really is - agents pushing for cash value type insurance are either ignorant of what they are selling or intentionally misleading you with standard industry obfuscation - every feature/option are designed to milk higher premium to lure you into thinking that you are getting something good. Such as the cash value added to the death benefit - Cash value is, afterall, belonging to the insurance company, so what is the big deal? This is my impression only, the cash value insurance is one BIG ponsi scheme. It is called whole life because it is designed to make you a slave to the policy premium for your whole life.

Public Comments

1. Some people really love them - they are brainwashed by the sellers. Term Life is always the way to go. Whole Life is for people that get taken by insurance salesmen...
2. All you want is straight term insurance. Whole life, universal life, and any other fancy name life is a RIP-OFF. You are right, Toni is right, and I am right. End of discussion. Do not listen to the agents you make their living off products and commissions. Check out www.zanderins.com for a FREE quote that will blow away any other type of life insurance.