I regularly come across agents in the life insurance business who are recommending that their clients purchase whole life insurance. While whole life has a lot of great benefits, it is not for everyone. Whole life insurance is a big commitment as it requires premiums to be paid for your whole life. As such, it is important as a consumer to be careful.
Here are some red flags to consider if your agent is recommending you purchase whole life.
1) They are recommending you purchase whole life insurance instead of contributing to your retirement plan.
2) Your overall life insurance death benefit less than 10 times your income.
3) Your whole life premiums exceed 5% of your take home pay.
4) The insurance expenses are not fully disclosed.
5) You are told to purchase a large life insurance policy on your child.
6) You are told to purchase a term life insurance policy with increasing premiums. Agents tend to do this so you eventually feel compelled to convert your insurance to avoid increasing term insurance premiums.
For more information about whole life insurance, contact Set for Life Insurance today!