Life Insurance is designed to service clients for a variety of needs and budgets so it's not fair to say that one policy type is better than the other. Both policy types serve specific needs. It's important to know the clients needs, desires and their comfort level with premiums before suggesting Term or Permanent coverage.
Hi Jeff, I would never say that term insurance is better than universal life, or whole life for that matter. What it really boils down to is what you or your clients are trying to accomplish with their life insurance program. Some experts will tell you to invest and only buy term, others will tell you investments are a risk. Again, I would talk with or have your clients talk with both a financial adviser and your life insurance adviser and get a program in place that fits the needs and goals. For some term life insurance is the way to go, for others a permanent policy is a better route. You have to go with the need that fits yourself or your customer. Putting them first will guide you to the product that best fits them and is the right choice.
That's a product question and a natural starting point for newer agents. You'll be far more effective if you focus on problem solving.
You would be in a better position to answer this if you were an active member of NAIFA (National Association of Insurance and Financial Advisors. They offer excellent educational programs. I suggest you find a local chapter, join it and actively participate in their programs.
Having some type of life insurance is better than having no type of life insurance but if you have the new type of life insurance with Living Benefits that pay you if you have one of these types of illness like a chronic, critical or even a terminal illness is the best of both worlds. Also, the new type of GIUL gives the clients living benefits and no cash value that they would have to spend down if they are trying to qualify for Medicaid. Hope this helps answer your questions
I do not believe one is better than the other as it is more about the client and what is best for their situation. With Term they know what they are getting for a period of time at a fixed cost. With Universal Life if it is not funded properly the cost will change and fluctuate. It is best to sit down with a licensed professional and discuss the needs, budget, and goals with the life insurance to determine which products are best for you and your family.
Business from Wasaga Beach, ON
Answered on Oct 24th, 2018
You cannot really say one is better than the other as it really depends on what your need is. Term is usually a temporary form of life insurance protection that provides a face amount for a set period of time ( ie 10 year , 15 year etc) therefore can be lower in premium yet address the need. Universal Life Insurance is a form of permanent insurance that builds cash values within the product. I have had clients with cash values that have built up within the actual policy and when they needed to reduce the cost of their overall insurance they decided to use the cash values towards the payment of the policy subject to rules within the policy wordings. I hope this helps .
Business from Vancouver, BC
Answered on Oct 24th, 2018
it's not a matter of which is better as a blanket statement. It's always a case-by-case scenario. Term is pure insurance and is best suited to service debt.UL is permanent insurance which has a growth element but has to be managed by the client which is a challenge in itself. Which then leaves the option of Whole Life which also has a growth element but is managed by the insurance company and not the client and yet still gets returns. It's easier and less stress and time. However permanent insurance costs more than term and term can fit a budget easier and more likely to be obtained immediately.
One is not so much better than the other. Which policy and or coverage would meet the needs of your client? You must do an depth interview with the client to determine their needs. You may have to interview them two or three times and then look at which product would best meet their individual needs. Everyone is unique and different.
Term is not better than UL. Term insurance only pays a death benefit in 2% of the cases. This is because 98% of the time the person outlives even the longest term policy. Permanent life guaranteed the death benefit will be paid and it will have cash value. Typically after 15 years the policy has more cash than premiums paid so if the client cancelled the permanent plan they will get all their premiums back. On term insurance they would have no cash value
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Answers (1-10)
Hi Jeff, I would never say that term insurance is better than universal life, or whole life for that matter. What it really boils down to is what you or your clients are trying to accomplish with their life insurance program. Some experts will tell you to invest and only buy term, others will tell you investments are a risk. Again, I would talk with or have your clients talk with both a financial adviser and your life insurance adviser and get a program in place that fits the needs and goals. For some term life insurance is the way to go, for others a permanent policy is a better route. You have to go with the need that fits yourself or your customer. Putting them first will guide you to the product that best fits them and is the right choice.
That's a product question and a natural starting point for newer agents. You'll be far more effective if you focus on problem solving.
You would be in a better position to answer this if you were an active member of NAIFA (National Association of Insurance and Financial Advisors. They offer excellent educational programs. I suggest you find a local chapter, join it and actively participate in their programs.
Having some type of life insurance is better than having no type of life insurance but if you have the new type of life insurance with Living Benefits that pay you if you have one of these types of illness like a chronic, critical or even a terminal illness is the best of both worlds. Also, the new type of GIUL gives the clients living benefits and no cash value that they would have to spend down if they are trying to qualify for Medicaid. Hope this helps answer your questions
I don't know that I would say its "better". Its a different type of product so it all depends on the customers needs :)
I do not believe one is better than the other as it is more about the client and what is best for their situation. With Term they know what they are getting for a period of time at a fixed cost. With Universal Life if it is not funded properly the cost will change and fluctuate. It is best to sit down with a licensed professional and discuss the needs, budget, and goals with the life insurance to determine which products are best for you and your family.
You cannot really say one is better than the other as it really depends on what your need is. Term is usually a temporary form of life insurance protection that provides a face amount for a set period of time ( ie 10 year , 15 year etc) therefore can be lower in premium yet address the need. Universal Life Insurance is a form of permanent insurance that builds cash values within the product. I have had clients with cash values that have built up within the actual policy and when they needed to reduce the cost of their overall insurance they decided to use the cash values towards the payment of the policy subject to rules within the policy wordings. I hope this helps .
it's not a matter of which is better as a blanket statement. It's always a case-by-case scenario. Term is pure insurance and is best suited to service debt.UL is permanent insurance which has a growth element but has to be managed by the client which is a challenge in itself. Which then leaves the option of Whole Life which also has a growth element but is managed by the insurance company and not the client and yet still gets returns. It's easier and less stress and time. However permanent insurance costs more than term and term can fit a budget easier and more likely to be obtained immediately.
One is not so much better than the other. Which policy and or coverage would meet the needs of your client? You must do an depth interview with the client to determine their needs. You may have to interview them two or three times and then look at which product would best meet their individual needs. Everyone is unique and different.
Term is not better than UL. Term insurance only pays a death benefit in 2% of the cases. This is because 98% of the time the person outlives even the longest term policy. Permanent life guaranteed the death benefit will be paid and it will have cash value. Typically after 15 years the policy has more cash than premiums paid so if the client cancelled the permanent plan they will get all their premiums back. On term insurance they would have no cash value