Whole Life Insurance… And Why You Might Be Getting Ripped Off
Whole Life Insurance
Some kind of life insurance is a standard part of nearly every working American’s portfolio. You may have coverage at work or a term policy that you took out when you got married, a burial policy to cover funeral expenses, or an expensive whole life policy that was sold to you as an investment. We all want to protect loved ones in the event of our death but be selective with how you go about ensuring that protection. We at Evans Law Firm have years of experience with life insurance contracts and see every day how people, especially seniors incur losses on unsuitable life insurance policies or are misinformed on important details. If you are 60 years or older, own a whole life insurance policy, and purchased in it California, call Evans Law Firm, Inc. today. We will review your policy at no cost to you.
The (Many) Cons
If you have been approached to purchase whole life insurance we recommend that you consider it very carefully. First, know that whole life coverage is very expensive; term policies providing the same death benefit amount are a fraction of the cost. Your agent will explain that whole life, unlike term, is an investment that grows in value at some future point. You’ll be told that at some point the cash value will be great enough to fund premium payments. In reality, that may or may not happen. Growth may be lower than expected and premiums increase as you get older. You may find yourself throwing good money after bad just when you expected the policy to be self-funding.
Also, know that the upfront commissions on whole life policies are very high and that it will take a long time for your “investment” to recoup that expense. Remember also that whole life policies are relatively illiquid compared to say stocks and bonds in a brokerage account. If you withdraw part of your cash value you will most likely pay a sizeable surrender penalty. You can borrow against the cash value but the interest charged invariably outstrips the interest earned on the remaining balance. That means you fall further behind in the self-funding of premiums payments. As premiums increase, you’ll find yourself pumping more cash into the policy or walking away from it and destroying the goal you set for yourself in the first place – a nest egg for you family when you die.
Whole life insurance policies are expensive and complicated and may ultimately fail to provide your family with the security you hoped for on your death. Think twice before purchasing life insurance, and be sure to check out all the options before deciding which type, if any, is right for you.
Some of the major whole life insurance providers in California are:
- Northwestern Mutual Life Insurance Company
- New York Life Insurance Company
- State Farm Life Insurance Company
- Massachusetts Mutual Life Insurance and Casualty company
- Guardian Life Insurance Company
- Penn Mutual Life Insurance Company
- American Family Life Insurance Company
- COUNTRY Life Insurance Co.
- MetLife Insurance Co. USA
- State Farm Life & Accdt Assr
- American United Life Ins Co. Company
- Sec Mutual Life Ins Co. of NY
- Ohio National Life Ins Co.
- National Life Insurance Co.
If you or a loved one been the victim of financial loss related to whole life insurance or annuity policies, in San Mateo County, or in any California county, contact the Evans Law Firm annuity and insurance attorneys at (415) 441-8669, or by email at firstname.lastname@example.org. Our attorneys have experience with complex financial contracts and large insurance companies. We can help guide your case through a FINRA arbitration, jury trial or toward an equitable settlement. We handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.