Abc asked in Business & FinanceInsurance · 10 years ago

I want to buy life insurance policy for my family. So which company I should choose?

I don't know much about life insurance. Only that I know is Term Life and Whole life. Please, suggest for buying Whole life, which company I should prefer?


I live in United States.

8 Answers

  • 10 years ago
    Best Answer

    Stick with Term Life Insurance. Do NOT buy 'Whole Life Insurance." It's a big rip-off.

    Term life insurance is pure life insurance and pure life insurance is what you want. It is meant to protect your family from sudden catastrophic financial loss in the event of your unexpected death. Term life insurance is very inexpensive compared to (rip-off) whole life insurance because, assuming that you are a young family, the chances of you, as the main bread-winner, dying over the next 20-30 years is relatively small. But should you die, your family will get a lump sum of money that will protect them from the sudden devastation of the loss of your income. [If you own a home, definitely look into mortgage insurance as well--cheap and 'worth it.']

    When Term Life insurance expires after 20-30 years, then it's done with--you don't get any money back from your payments, as Whole LIfe claims that they give you. However, in 30 years your children will be out making their own incomes, and you ideally will have saved enough money to protect your spouse from any devastating financial loss.

    This is what my husband and I did--we went with Term Life for 20-30 years (I forget whether it was 20 or 30 years). The insurance has expired now, but my children are now all self-supporting and we have enough in savings and in equity to protect my husband or me from any devastating financial loss. So we have NO life insurance now--but that's fine at this time of our lives (It's adult children with young families that need it, not us).

    Whole Life Insurance, on the other hand, claims to combine straight life insurance with an investment plan of some kind. Insurance companies will push it because it serves THEM well--they make more money from whole life than from term insurance--but it does not serve YOU well. It's at your expense. You'd be much better off getting term insurance from a reliable company and investing all that extra money in the stock market.

    People here on Yahoo have commented that they realized too late that their 'Whole Life Insurance' policy was a bad mistake--that it was a money drain that yielded little return when they really needed the money. I've never heard anyone on Yahoo say that 'Term Life Insurance' was a mistake.

    Beware of Insurance Hawks who will try to convince you that 'Whole LIfe' is the way to go--they just want your money, NOT what's best for you.

    Regarding which company? We chose USAA, a great company--but it's only available to military or ex-military personnel and their children.

  • 10 years ago

    In answering your question, it’s imperative to point out that “magicbird” is spewing lots of misinformation, and I’d hate to see you fall for the many common misconceptions she’s spreading.

    Is what she’s written incorrect? More the most part, she’s probably pretty much right on – for HER in HER situation. Is whole life a rip-off? Absolutely not! Is it right for you? Maybe; maybe not. Is term appropriate? Usually, during the child-raising phase of your life, term should normally constitute the bulk, and possibly all, of your life insurance plan. The ONLY responsible way to purchase life insurance is as part of a comprehensive financial plan under the direction of a properly qualified financial planner or advisor. An insurance agent is typically not qualified to provide this level of advice.

    Make no mistake, while some insurance agents may want to sell you whole life to make a larger commission, the insurance companies most certainly do NOT want to sell you whole life over term. Term is where the carriers make their money. Permanent policies must pay a death benefit if kept in force; term policies almost never do; and whole life is full of guarantees that the company has to support. Insurers would prefer that you buy the shortest duration term, or a universal life policy that relies on an internal rate of return to stay afloat. These are the insurance companies’ cash cows. I tell you this so that you understand that insurance companies offer whole life only because it is indisputably the best product for those who have a permanent need and want absolute guarantees.

    Also, describing whole life as insurance with some sort of savings plan attached is a complete misnomer. Cash value within a life insurance policy is designed for only one purpose; to average mortality costs over the insured’s lifetime to guaranty a level or predictable premium. Other appropriate applications for cash value may exist, but not within the context of this discussion; and whole life is clearly the least efficient insurance platform for asset accumulation.

    Finally, regarding her recommendation of USAA: I’ve been a USAA member for 32 years. I love their property and casualty products, and their claims service is absolutely second to none. Unfortunately, where life insurance is concerned, they offer no advantage; and you miss out on the most important component in selecting life insurance; the services of an objective independent advisor committed solely to ensuring your financial well-being.

    Bottom line: EVERY type of life insurance product that exists is the best, most cost effective solution for someone in a particular situation.


    Source(s): Financial planner, 11 years
  • 3 years ago

    I might suggest that you visit this web site where you can compare quotes from the best companies: http://INSURE-HELP.COM/index.html?src=2YAzmgupIQ18

    RE :I want to buy life insurance policy for my family. So which company I should choose?

    I don't know much about life insurance. Only that I know is Term Life and Whole life. Please, suggest for buying Whole life, which company I should prefer?

    Update: I live in United States.

    Follow 7 answers

  • 10 years ago

    You don't choose a company. You choose an insurance broker or a financial advisor. They'll help you choose the company. My clients use the tool on my site to shop ~150 different companies and then they call me to ask questions and get help in selecting a plan.

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  • car253
    Lv 7
    10 years ago

    Stick to the big well known companies and you will be fine. Term is cheaper. Just make sure you get level premiums.

  • 10 years ago

    For like coverage with like endorsements, it doesn't matter much. You can shop by price, as long as the companies are A rated or better.

  • 10 years ago

    Max Newyork Life inusrance is one of the best in US . one has to take different policies depending on the needs .

  • Anonymous
    10 years ago

    In what country?

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