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Viewer comment - 11/29/1997 - From Georgia...
Best information on the Web based quote services I looked at. Most all of my questions were answered somewhere without having to make phone calls. The information seems to be very honest and straightforward. You are selling the same products at the same prices as the other guys, but you provide much more helpful information...

Whole Life Insurance

by David Frucella

Whole Life is the product the life insurance industry's profit is built around. The current variation of Whole Life is Universal Life and Variable Life. If you take a look at my comments on Universal Life (Universal Life Insurance - The Good The Bad And The Ugly), you will know I do not recommend the product in most cases. Whole Life fits into the same category.

The best way to explain Whole Life is this: You pay a set guaranteed premium for life - the company will give you coverage on your life (for life) for the amount you chose - the policy gives you paltry cash value - the company holds your cash value, invests your cash value and makes lots of money on it and pays you almost no interest in return - so you get to make the company a very low interest loan and you get some insurance - in other words, you get screwed - got it? Now if you don't think that's true, why do insurance companies own half the world?

Whole Life, many times, has been sold as a savings product. The target market are those with young children, saving for college or those wanting to save for retirement. If an agent approaches you on either of those premises, I would give serious thought to those recommendations (personally, I would run in the other direction :)).

If you want life insurance coverage for life and level premiums for life, and don't mind the cost, Whole Life may be for you. I do recommend it in specific instances - estate planning, business situations etc. Just erase any savings element from your mind.

If you want to save money, I usually recommend buying less expensive term life insurance and putting your "investing" dollars in to your retirement plan (401K, IRA or 403B). This is especially important if your company matches any of your contributions.

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