Do You Know About the Deceitful Savings Account of a Whole Life Policy?

Have you ever heard of someone state that there is a savings account attached to a whole life insurance policy?  How would you feel about a savings account where the bank keeps the savings if something were to happen to you?

Did you know that a majority of people who purchase whole life insurance policies believe that if something were to happen to them that they would receive both the "savings" and the death benefit?

If a majority of people believe this, is it the insurance companies at fault, the insurance agents or the people purchasing the policies?  This is very difficult to answer.  My suggestion is that it is all of the above.  People need to take responsibility and learn for themselves about the contracts they are signing.  On the other hand, most people are so busy with their day to day lives that others must work hard to make sure they have ethical business practices.

In some cases, the death benefit is increasing over time to make it appear that the "savings" are being attached to the death benefit.  However, that increased death benefit just means that there is an underlying increase in the cost of insurance.  Is it ethical to call the cash value a "savings" plan?

This post was reposted from http://finlit.biz/life-insurance/do-you-know-about-the-deceitful-savings-account-of-a-whole-life-policy/, originally written on February 9th, 2013.