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What online school is best to get your life insurance from?

Help! Life insurance is so confusing! Is it bad to pay minimum premium for life insurance?

  • I am in my early twenties and lack any knowledge in finances and regarding life insurance. A couple months ago I got a life insurance plan because of my mom (she started working for a company selling life insurance and pressured me to get it). Of course, when I met with the agent, she gave me impressive numbers of how my money would multiply by the time I retire because of their high interest rates. I believe it is variable, so the rates will change based on the market. I pay a monthly amount to Fidelity and Guaranty Life also known as Old Mutual. My first question: Is this even a good life insurance company in the first place? Of course, the agent say they are because of their high interest rate. But since that could change with the market, I am not even sure what I'm doing with this company. I researched and found that New York Life would probably have been a much wiser choice. I recently started school so I found it difficult for me to pay the monthly amount I had initially decided on. So i wanted to change my monthly payment to the minimum premium amount. My mom said that if I pay the bare minimum it would hurt me in that my money would not grow. Upset, I wanted to cancel my policy. I was told I would get none of my money back if I do. My mom told me this was common sense, but why cant I get back the money that I deposited? I feel so cheated as well as stupid for not having known this prior to investing in a life insurance. I am utterly confused and can't seem to comprehend life insurance jargon as I am trying to do some research on my own. Can someone please explain how life insurance works exactly? But moreover, will it really hurt me to pay the minimum premium in life insurance for about 6 years while I'm in graduate school? What should I do?

  • Answer:

    That agent gave you a 'best case' scenario. Any time someone has a 'minimum premium' they can pay on life insurance, that means they've linked the insurance part to an investment part. In general, insurance is one of the WORST investment products out there. Look at what's GUARANTEED, when you pay the minimum. Compare that to what PURE insurance costs - for you, you could probably buy $250,000 of 20 year term coverage for about $200 A YEAR. Life insurance is NOT an investment that returns well. Almost 100% of what you pay in the first year, goes to pay the agent in commissions. The market isn't going to change for years.

Jean Jho at Yahoo! Answers Visit the source

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Your mother is a moron and a bad parent. Never take advice from her again on any subject. It sounds like they sold you a whole life policy, which tends to be pretty expensive. Also, all of your early premiums go to pay the fat commission to the salesman so that's why you haven't accrued any benefit thus far. The bottom line is, you don't need life insurance if you are young and single and have more pressing expenses. Since you have only lost a couple months of premiums, just cancel it now and consider the lost money an expensive lesson in taking advice blindly and not doing your research. Down the road when you get married or have kids you can revisit insurance and decide then what is necessary.

MoneyMen

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