Why Buy Term Life Insurance Instead Of Universal Insurance Policies?
There are a lot of financial experts who counsel people to use term life insurance policies. While there are many life insurance brokers who will also tell you that term life is a great idea, there are plenty of brokers from the larger insurance companies who suggest whole life insurance policies instead. The reason that they tend to advise this is very simple: these insurance policies mean a bigger commission for agents. Insurance Policy agents get a larger commission on the sale of universal life policies than on term life insurance policies because the premiums for whole life policies are higher. Still when both insurance policies offer the same amount of coverage, you’ll give more in premiums for a universal policy, so the broker will get a higher commission. Yet, why would anyone pay those premiums? It’s because permanent life insurance policies establish cash value inside of them. This cash value can be borrowed against for a very, very low interest rate; or the insurance policy
