25 Questions You Should Ask Before Purchasing a Permanent Life Insurance Policy

Previous articles talked about 6 Names Associated With Whole Life Insurance, Izu's RIPOFF Acronym and 6 Deceitful Ways Whole Life Insurance is Sold.

Here, we will discuss some of the questions you want to ask to help avoid being trapped into purchasing a whole life insurance policy.  Feel free to print this out when shopping for life insurance.

1. Have I taken notes and written down all my questions and answered them one by one?
2. Have I listened to someone who is willing to list the pros as well as the cons of the policy?
3. Is someone trying to get me to focus on something other than the details of this policy?
4. Why does this life insurance policy seem extremely complicated?
5. What happens if I trust the person writing the policy who may not fully understand the policy?
6. Why are there so many types of these policies and so many hypotheticals?
7. Am I being overwhelmed with too much information so that I can't focus on the policy?
8. Have thousands of people lost money in the past by placing their trust with the wrong company?
9. Are there new concepts that I am being taught and should I research these concepts?
10. Have I been asked enough questions to diagnose my needs?
11. For benefits, outside of life insurance, what costs are paid to access those benefits?
12. Am I being told to focus on the benefits outside of life insurance?
13. What percentage of people holding this type of policy will stop within the first three years?
14. How much money will I lose if I decide to stop this policy in five years?
15. What percentage of these types of policies don't pay out?
16. What happens to all the money dumped into these policies since they are not paid out?
17. What commission will be made on this policy?
18. Do I know the cost of the life insurance each year or do I just know the premiums?
19. Am I being told that the IRS specifically made a loop hole to avoid having to pay taxes?
20. What is the worst case scenario if I wrongly choose whole life over term life insurance?
21. Why Doesn't Your Whole Life Hypothetical Show Cost of Insurance?
22. Do You Get the Cash Value and Death Benefit in a Whole Life Insurance Policy?
23. Should Whole Life Insurance be Sold as a Personal Pension Plan?
24. Should Whole Life Insurance be Sold as a Savings Program?
25. Does the Loan on a Whole Life Insurance Policy Constitute Tax Free Retirement?

See what Suze Orman says at apps.suzeorman.com. See what Dave Ramsey says at www.daveramsey.com. See what Salman Khan say at www.youtube.com. See what CNN Money says at money.cnn.com. See what Smart Money says at www.smartmoney.com.



Thanks for visiting! Ask any questions you need answers to and we will do the research for you!

This post was reposted from http://finlit.biz/life-insurance/25-questions-you-should-ask-before-purchasing-a-permanent-life-insurance-policy/, originally written on February 17th, 2013.