Life Insurance Advisors, Inc.
Fee-only Insurance Consulting


Avoid High Sales Commissions on Cash Value Life Insurance

The General Reason

Permanent (cash value) life insurance can be a good investment. However, if you are considering purchasing it (whole life, universal life, or variable life), making it a good investment requires three things in addition to choosing a very good and financially strong company with a superior track record and reputation:

  • Avoiding high sales commissions. Maximize the cash value in the first year as a percentage of the premium that you pay. First-year cash value should exceed 80% of your first-year premium. It can be over 100% with a policy that pays no sales commission. Don't throw away most of your first-year premium.

  • Making sure that this added value in the first and early years compounds in the future to provide a significantly greater rate of return, all the way to life expectancy and beyond, over a policy that pays the typical huge sales commission of 50%-100+% of premium in the first year.

  • Disclosing the sales commission, as is customary and required with the purchase of any other financial product.

Please call or e-mail us before you buy a policy that doesn't involve all of these things and give you complete assurance that you're making the best choice and that your interest comes first.

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