3 Common Sale Pitches Agents May Use:

Whole Life Insurance is a popular product that Insurance Agents are recommending to their clients. As the name suggests, whole life insurance covers you for your whole life. To add flexibility, whole life insurance offers cash value which is included in the policy. As a policyholder, you have the option to borrow money from the cash value or trade your policy in for the cash value that has accrued. These flexible terms are the reasons why whole life insurance is in-demand.

Before purchasing, however, you need to know more than what your insurance agent tells you. Here are some of the sales pitches that you usually hear regarding whole life insurance and what they really mean.

Use Whole Life Insurance for Your Retirement Savings:

The sales pitch is that you are allowed to take some money from the policy’s cash value during your retirement so you can use it for other expenses. This is true but only if you’ve already finished your contributions to your 401k plans and your IRAs. The loans taken out on your policy needs to be paid or it will reduce your death benefit. Moreover, if you remove too much money from the cash value, your policy can lapse.

Big Returns are Guaranteed

The insurance agent will most likely tell you that the cash value return is guaranteed as long as you pay your annual premium. This is true, but a whole life policy tends to accrue cash value slowly, so the investment has to be built for long-term. Your policy may also rely on the stock market for its gains.

Furthermore, opting out of your policy in earlier years will warrant a surrender fee and leave you with less cash value than what was promised.

This Policy is Great If You Have Children

To entice you, some agents might say that you can transfer the ownership of the whole life policy to your child when they reach a certain age. Furthermore, they can tell you that your child will gain access to your cash value and use it for coverage. They will also offer additional coverage in case your children acquire some health conditions. What you need to know is that your child needs to pay the annual premiums to keep the coverage. Financial advisors usually tell you to set up a 529 college fund for your children instead of opting for insurance, but explore all the options. Whole life insurance is a necessity, you have to know which one is the best for you. Schedule an appointment with an insurance agent from a trusted company to get all the answers that you need.

At Viancas Insurance, we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by texting or calling our agency at (619) 799-9443.

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