POSTED BY : By Hank Coleman

Jan 27th 2014 11:00AM

Why Is My Broker So Eager to Sell

Me Whole Life Insurance?

A friend of mine recently complained

about an old college roommate who

was trying to pressure him into buying

a whole life insurance policy. He was

having trouble figuring out how to tell

him no, because they'd been so close

back then.

This is an all-too-common occurrence

for young professionals in their late

20s and 30s. This is the time when

friends and family are test-driving new

Why Are Your Friends Turning on

You?

But when people take that first sales job, they're not

likely to have a big, established client base to sell to.

So they turn to the contacts they do have -- friends,

family and coworkers -- whom they bombard with

pitches to buy products that might not always be the

best fit for them.

For many people starting off

in the financial services

industry, the mantra is "you

eat what you kill." They have

to sell their

product, insurance

policies, investments, broker

age services, etc., because

the lion's share of their

paycheck comes from

commissions on the sales

they bring in.

Whole life and term life insurance are two very distinct

and different types of insurance and financial products.

In fact, whole life is more of an investment for many

people who buy those types of policies.

Whole life insurance builds cash value while you're

paying those premiums. Eventually, after years of

premium payments, you build up a cash value in the

policy that often gives you many options.

The cash value becomes an asset itself. It can grow,

increase in value, and even pay dividends in some

cases depending on the type of policy you purchase.

Many whole life insurance policies let you borrow

against the cash value you've built up, cash out

completely, or even build up enough cash value where

it can make your premium payments for you. And your

Understanding the Difference between Whole

Life and Term

This accrual of cash value is the primary

reason that whole life insurance policies are

more expensive than term life insurance

policies, which do not build any cash value.

Term life insurance only covers you for the

length of the term you've bought the policy --

and for as long as you make the payments.

When the term is over (or you stop

paying), you have nothing to show for it.

Unless you die and your heirs collect the

policy, it simply expires, and you would have to

purchase new coverage if you want it.

So, if whole life insurance has inherent value and

is more an investment than an insurance plan,

why don't more people buy it? Probably because

life insurance is often a poor investment. While it

produces a low but steady annual return, other

types of long-term investments often outmatch

the gains you can earn from it.

See More :

http://www.dailyfinance.com/2014/01/27/whole-

life-insurance-pros-cons-hard-sell/

http://www.westhillinsuranceconsulting.com/