Whole Life Insurance
So You Want to Know About Life Insurance
It’s likely that at some point, you’ve either purchased or considered purchasing life insurance. Family, friends, and most financial advisors will advise you to consider it, particularly as you approach retirement. Some companies buy it for their employees, or contribute to a policy their employees select. Considering this, you’d think that most people would have a fairly good idea about the strengths and weaknesses of the various types of life insurance. Regrettably, that’s not always the case, and as California insurance fraud lawyers, we want you know that companies aren’t always forthcoming about the wide variety of life insurance products that they offer.
What You Don’t Know You Don’t Know
The basics of life insurance are straight forward: you pay a certain amount every month toward a policy, and when you pass away, your heirs get a lump sum. In addition, you can generally withdraw from your policy if you are in need of funds. However, from this basic model of Life insurance have sprung a staggeringly diverse array of policy types. Indexed, variable, Universal: terms that have no obvious meaning out of context. It can be difficult to identify the difference or to know the ins and outs of the policy you’re purchasing. It can be vitally important, however, and no matter how much you trust your broker to look after your interests, you have to know exactly what it is you’re spending your money on.
What is Whole Life Insurance?
Whole Life Insurance is among the most popular types of life insurance. It is probably what people think of when talking about life insurance, and has a reputation as being one of the least complicated and most trustworthy. But sometimes, whole life insurance can be as fraught with hidden fees, penalties, and other problems that can put a serious kink in the financial plans of seniors and retirees.
Many whole life insurance policies contain surrender fees and other penalties that can result in significant costs to policyholders. In addition, life insurance policies can include a steep commission that isn’t disclosed to consumers. Brokers can take as much as 10 percent of the total value of your policy as a commission, as well as generous rewards from insurance companies for high sales volume.
How Can You Protect Yourself?
If you’re considering investing in a life insurance policy, it’s always a good idea to shop around, get advice from uninterested parties, read the fine print, and to make sure that what you are paying for is the best option for your needs, rather than the one that will benefit the broker the most. You should also speak with a San Francisco insurance fraud attorney. Some policies may not cover what they need to, or may have been intended for someone at a different income level. Life insurance policies can tie up your funds for a long time, and someone on a fixed income may incur significant costs if they try to take money out when they need it.
Who Sells Whole Life Insurance?
Major Sellers of Whole Life Insurance include:
- Northwestern Mutual Life Insurance Company
- New York Life Insurance Company
- State Farm Life Insurance Company
- Massachusetts Mutual Life Insurance Company
- Guardian Life Insurance Company of America
- Penn Mutual Life Insurance Company
- American Family Life Insurance Company
- COUNTRY Life Insurance Company
- MetLife Insurance Company USA
Contact Us
If you feel that you may be the victim of an improperly sold or administered life insurance policy, contact Evans Law Firm in California for a free consultation. Evans Law Firm’s practice areas include insurance, annuity, and banking fraud, financial and physical elder abuse, qui tam and whistleblower law, and nursing home abuse cases. We can be reached at (415) 441-8669, or by email at info@evanslaw.com.
