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The majority of us are not rich. Many people, nowadays, live
paycheck to paycheck. Last thing we need is to get taken for an
expensive ride by a life insurance salesperson whom is nowadays
cleverly hidden behind the title financial advisor. There are
laws to protect from the worst of cases, but you can save
thousands and more by following these tips:
1. Find out what your current limits are if you have insurance
through your employer. On average employers only provide $50,000
coverage if they do at all. This is not enough coverage. As a
general rule you should have $250,000 - $500,000.
2. Educate yourself. Just like buying a car, you don't want to
pay full retail price. Everything is negotiable. Look up and
compare whole and term life. Do your self a favor and look it up
on the internet. You will see a wide range in prices for the
same coverages. For instance Ameritas was less than 1/2 the
yearly premium of Allstate and Met Life for the same coverages -
that means a 50%+ savings every year for the same coverage! That
amounts to thousands upon thousands of dollars saved in just a
few years. Make sure you pick an A rated carrier that has been
around a long time.
3. Do not buy whole life! Know that term is cheaper and a better
deal. Whole life is insurance with a slight savings/investing
mix. These slick salespeople get their big paydays when you sign
up for whole life. Your first years premium and 3-4% thereafter
goes to commissions. Therefore, you won't see much in growth for
15 - 20 years. You would do 10X better with any good mutual
fund. Don't let them fool you with claims that your investments
are tax free. Its not - per the IRS its tax deferred, not tax
free. And due to the extremely high commissions you won't ever
see much growth. Just look up on the internet and see how many
people amassed great wealth with whole life - you will find the
answer is zero! What a rip off! Upon calling numerous experts,
the only reason to have whole life is if you are 60-65 or above,
or if you are extremely wealthy and want to use it to pay your
estate taxes when you die. That is it from the worlds leading
experts! Suzie Orman will tell you the same - stay away from
whole life!
4. If you are going to hire a financial advisor, hire a
fee-based financial advisor. They will not push loaded funds and
are truly interested in your benefit. They want you to succeed
and give them referrals. This is how business should be done!
There is only 1 place to go to find the best fee-based financial
advisors in the country - The National Association of Personal
Financial Advisors (NAPFA) www.napfa.org. You can find a
financial advisor near you and they have to have top-notch
qualifications. Something you won't find with flighty,
commisioned based advisors. So there you have it. Find out what
your coverage is. Get educated - you can never have too much
education (whether it be formal or informal). Do not buy whole
life! And get a fee-based financial advisor. You will be glad
you did!
About the author:
David Maillie is an alumni of Cornell University and holds
numerous patents including his recently awarded patent for
headlight cleaner and restorer. He can be reached at M.D.
Wholesale: http://www.mdwholesale.com and at
http://www.bestskinpeel.com
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