Buying a Life Insurance policy can be tricky.
Your agent will give you a number of options, which usually combine life insurance with an investment program. Don't fall into the trap! If your agent offers you a life insurance policy called Whole Life, Universal Life, or Variable Life, you're probably not getting a great deal. Your agent will make these sound attractive by telling you that you can "borrow" from these policies, and earn interest on them. Don't fall for it! If you really need some investments, there are much better ways to spend your investment money. Keep insurance and investments seperate!
Make sure your agent offers you a "Term Life" policy. This is strictly life insurance... if you die, it pays a fixed amount. Simple...exactly what life insurance should do. You can buy a lot more insurance for a LOT less money! Term Life policies usually come in 10-year terms, but ask about 20 year term rates also. You'll pay a fixed amount monthly for a fixed payout for that number of years.
Don't let your agent push you into one of the high priced policies...it's all about his commission.
Yes, I'm a former insurance agent.
GC
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