Articles: Ten Points About Life Insurance

If you do not understand about life insurance, here are 10 important things you should know about it. Here are presented by experts in CNNMoney.com about life insurance:

1. All policies fall into one or two camps. There is a term policy or a pure insurance cover. There were several variants of the whole life (life insurance), combined with a pure investment product with term insurance (term insurance) and make a cash value.
2. Insurance is sold, not bought. The agents selling insurance products sometimes by exaggerating the product, because they expect a high commission from the sale of a life policy. In addition the level of competition in the insurance industry also is increasingly tight.
3. Whole life is expensive. Policy with an investment component cost many times higher than the policy term. As a result, people who buy whole life often can not receive an adequate current rating, leaving them under the insurance.
4. Whole-life policy is built on assumptions. Agent presents estimates in the future, not the reality. Some companies defend this presumption of return in the future on the high side to attract more buyers.
5. Take care of insurance and investment are strictly separated. There are better places to invest and without the high commissions of the policyholder for life.
6. Buy enough to fill the term of protection you need. Insurance is not the place to skimp, especially with the tariff in history is always low. Use a calculator to get a rough idea how much insurance you need.
7. Customize your policy term as required. You want a policy that will cover as long as you rely on savings or for retirement income.
8. Buy now healthy. Parents in general health was not in the best position, they must pay a higher rate of life insurance. So buy insurance as early as possible as you can, do not wait until you start to depend.
9. Tell the truth. Just point out the facts on your application. And make sure if you made a claim in large numbers, the company will conduct an investigation prior to paying.
10. Use the Web to shop. Buying life insurance has never easier before there was internet presence. You can get many answers from a website, without the hassle of sales agents.