Comments on: Cash Value vs. Term Life Insurance http://www.helpyourmoney.com/96/cash-value-vs-term-life-insurance/ Find and Share Tips on How to Make, Keep and Grow Your Money Sun, 12 Oct 2008 10:50:09 +0000 http://wordpress.org/?v=2.3.3 By: Smith http://www.helpyourmoney.com/96/cash-value-vs-term-life-insurance/#comment-54952 Smith Wed, 05 Mar 2008 22:46:48 +0000 http://www.helpyourmoney.com/96/cash-value-vs-term-life-insurance/#comment-54952 Hey Dave, I was looking to see your evidence against term life insurance with solid facts to support what you are saying in regards to this article. I am having trouble finding any advantages to cash value that don't swing in the interest of the insurance company and at a great, unnecessary cost to the consumer. It seems the only people who could come out on top would be people who need additional tax shelters for their money, but 85% of the population can't even max their contributions of their 401k to matching, let alone fully fund a single Roth IRA (a superior investment tool to cash value when comparing interest rates with a meager $5,000 yearly limit). As far as I can tell, about 1 out of 10 (being generous) have a need for additional tax shelters that possibly a Variable Life contract could provide, and yet 4 out of 5 policies sold in the United States are Cash Value policies. It is a fact that insurance agents make more in commissions on cash value policies than they do on term, and not in a marginal regard. Could it be that instead of doing what is right for the client the agent is seeking higher commissions? Why would the companies pay these higher commission on Cash Value products if they weren't trying to provide greater incentive for their agents to push these products? This seems to be the only explanation I can come up with. Please site specific references for me if you have some time. Thanks! Hey Dave,
I was looking to see your evidence against term life insurance with solid facts to support what you are saying in regards to this article. I am having trouble finding any advantages to cash value that don’t swing in the interest of the insurance company and at a great, unnecessary cost to the consumer. It seems the only people who could come out on top would be people who need additional tax shelters for their money, but 85% of the population can’t even max their contributions of their 401k to matching, let alone fully fund a single Roth IRA (a superior investment tool to cash value when comparing interest rates with a meager $5,000 yearly limit). As far as I can tell, about 1 out of 10 (being generous) have a need for additional tax shelters that possibly a Variable Life contract could provide, and yet 4 out of 5 policies sold in the United States are Cash Value policies. It is a fact that insurance agents make more in commissions on cash value policies than they do on term, and not in a marginal regard. Could it be that instead of doing what is right for the client the agent is seeking higher commissions? Why would the companies pay these higher commission on Cash Value products if they weren’t trying to provide greater incentive for their agents to push these products?
This seems to be the only explanation I can come up with. Please site specific references for me if you have some time.
Thanks!

]]> By: Jed Pittman http://www.helpyourmoney.com/96/cash-value-vs-term-life-insurance/#comment-4493 Jed Pittman Thu, 21 Dec 2006 02:21:49 +0000 http://www.helpyourmoney.com/96/cash-value-vs-term-life-insurance/#comment-4493 Dave, I would be interested in hearing your point of view on this, including specific points/counterpoints to the article. I agree with Catherine that Term policies are generally recommended by Suze Orman et. al. but I also understand that one-size-fits all is not appropriate. If you could please elaborate further about your ideas and what you disagree with specifically, that would be great. I for one am interested in making sure that I am well informed on this topic because I am working on evaluating my own insurance needs. Dave, I would be interested in hearing your point of view on this, including specific points/counterpoints to the article. I agree with Catherine that Term policies are generally recommended by Suze Orman et. al. but I also understand that one-size-fits all is not appropriate.

If you could please elaborate further about your ideas and what you disagree with specifically, that would be great. I for one am interested in making sure that I am well informed on this topic because I am working on evaluating my own insurance needs.

]]> By: Dave http://www.helpyourmoney.com/96/cash-value-vs-term-life-insurance/#comment-4372 Dave Tue, 19 Dec 2006 01:27:56 +0000 http://www.helpyourmoney.com/96/cash-value-vs-term-life-insurance/#comment-4372 Anybody interested in the truth can email any portion of that article to me at qcdave259@hotmail.com and I will be happy to blow it up. Term insurance is the most profitable product life insurers carry, that is documented fact, and quite frankly, the only product I have ever seen PUSHED on my tv. I hope you don't give this type of sweeping (one product is correct for every situation) advice to clients as I would construe it as malpractice. Anybody interested in the truth can email any portion of that article to me at qcdave259@hotmail.com and I will be happy to blow it up. Term insurance is the most profitable product life insurers carry, that is documented fact, and quite frankly, the only product I have ever seen PUSHED on my tv. I hope you don’t give this type of sweeping (one product is correct for every situation) advice to clients as I would construe it as malpractice.

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