How To Avoid The Life Insurance Illustration Trap!

If you are considering the purchase of a universal life or a participating whole life plan then this article is an absolute must read!

 

Based on your specific circumstance and needs, purchasing a permanent life insurance plan may (or may not!) be in your best interest. If so, a financial security advisor can help you determine if you're better off with a universal life plan or a participating whole life plan. There are no "one-size-fits-all" plan, and you should be wary of anyone who claims any product to be such a solution.

 

The advisor must present to you a complete illustration to describe the specific features, benefits, and operations of the recommended policy.

 

Before making a decision to purchase an insurance policy based on an illustration, it is important you understand the purpose of illustrations, how they work, what may be considered a reasonable illustration, and most importantly, how to avoid illustration traps.

 

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What is the purpose of life insurance illustrations?

 

 

 

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What is a reasonable period of time an illustration should consider?

 

How does the interest rate chosen make a significant difference in investment returns?

 

What are reasonable interest assumptions for Universal Life plans?

 

How should I consider interest bonuses?

 

What are reasonable interest assumptions for Whole Life plans?

 

Summary of life insurance traps to avoid.

 

Contact a professional broker for your free consultation.

 

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