4 Life Insurance Policies You Should Never Buy

4 Life Insurance Policies You Should Never Buy

by

Laura Ginn

Life insurance is no joking matter. Everyone should consider getting a policy at some point in life, but there are two groups who must own life insurance:

Those who own a large estate that might be subject to tax.

People with loved ones who are financially dependent on them.

The first group may be in the minority, but most of us fall into the second category. If you have loved ones depending on you, it is important to have a policy that will take care of them if the worst happens. With that in mind, there are some life insurance policies that you must avoid at all costs.

Guaranteed Issue

You ve probably seen the promotions for guaranteed issue life insurance on late night television. The selling point is that you won t be denied a policy. An offer of this type is one that you probably cannot refuse especially if you ve been denied life insurance in the past. But when you look beyond the surface, you ll discover that there s far less to this policy that you initially thought.

Guaranteed life insurance must be a last resort if you absolutely need insurance and have been turned down everywhere else. Other than that, you should try investigate other alternatives before you apply for that policy.

Life Insurance For Children

Life insurance for children is a shameless waste of money. This is because children are mostly healthy and they live a long time. Plus, kids don t earn an income so why would you want to insure them? Instead of wasting money on insurance, put that money to good use by saving for your child s college education.

Travel/Accident Insurance

Travel insurance is fairly cheap because very few people ever file a claim. The efficiency of airlines means that most travelers arrive safely at their destinations without any incident. But let s consider the worst case scenario. Do you think that an extra bit of insurance would matter to your family if you the cause of death is an accident instead of illness? Instead of paying for travel insurance, upgrade your seat to a first class ride, you ll get more out of it.

Whole Life/Universal Life

Life insurance is more of a tool than an investment. Whole life policy providers state that they ll make investments to stretch your dollars. While this might seem like a good idea at first, it will cost you extra because this type of insurance is more expensive than a traditional policy. Furthermore, you ll probably never see a dime from the investments because the expense is more than any interest you ll ever earn. Don t throw good money at worthless investments. Treat life insurance for what it is a tool to protect your loved ones in case something happens to you. If you need an investment strategy, talk you your banker, not your life insurance agent.

Life insurance is a tremendously worthwhile purchase. When you ignore the gimmicks and purchase the right policy, you ll ensure that your family gets the protection they need.

Laura Ginn found affordable life insurance on

uSwitch.com

, the UK s number one price comparison website.

Article Source:

ArticleRich.com