Cash Value Life Insurance Policy

[PThomas]

If my agent recommends a cash value policy, What should I consider?

[disneysteve]

Your one and only consideration should be getting a new agent.

[am_vanquish]

1. Consider that the commission your agent will receive from that type of policy will be MUCH greater than the commission he/she will receive on any other policy the company offers.
2. Consider that cash value policies are hardly ever (some would say never) the best life insurance product for the buyer's situation.
3. Consider whether your agent has your best interest in mind or his/her best interest in mind.

For the answer to #3, see the post by DisneySteve.

[TrunkMonkey]

Unless you have over 3 million dollars in assets and are using the insurance for estate planning. or you have lots of other investments and want some diversification you shouldn't buy anything. What is your net worth?

[littleroc02us]

Did you know that your payments for the first couple of years goes towards his commissions and fees. Also, cash value is a horrible idea because your rate of return is lower than investing long term with historical stock market data returns. The cost is much higher than Term and you will lose the cash value if you die and no one will get it. Term is also better because when the term runs out hopefully your kids have moved out of the house and you have no debt and the house is paid for.