5 Life Insurance Facts Companies Don’t Want You to Know #lifeinsurance #insurance

5 Life Insurance Facts Companies Don’t Want You to Know

#lifeinsurance #insurance

Life insurance is a valuable financial tool that can provide financial help to your loved ones when you’re not around to do so. However, life insurance is also a huge and highly profitable business with the main purpose of taking as much as possible of your hard-earned cash as you are willing to spend, whether you need the coverage or not.

It’s important to make sure you have the life insurance coverage your loved ones need, but it’s also important to show some mild skepticism about the claims insurers make. Here are 5 facts you are unlikely to hear from the mouth of an insurance agent that every life insurance buyer should know.

1. Around 9 in 10 life insurance policies lapse without any payout.
2. Whole life insurance is a terrible investment.
3. A lot of people just don’t need life insurance.
4. Most people carry more insurance than they need.
5. Your first year of insurance premiums goes to your agent as commission.

The Bottom Line: There’s nothing wrong with successful agents making a decent living, but you must take into consideration incentives when listening to the advice of insurance agents. If you were a car salesperson and were paid twice as much for selling a BMW than for selling an Audi, which brand would you sell the hardest?