Universal Life, Whole life. Sounds like it ought to last forever. Almost without fail the life insurance agent who told you about universal life or whole life led you to believe that it would last forever. An unfortunately large percentage of those agents didnt tell you the truth. Yes, they lied!!!!!!! A conservative guess would be that between half and three quarters of all whole life and universal life policies will fail even if you religiously pay your premium every year.
Universal life and whole insurance are the most misrepresented products to hit the market since, well, since life insurance has been for sale. Misrepresentation of life insurance performance has been the source of more lawsuits and agents lost licenses than any reason.
So, is there something inherently wrong with the products ¦or is there something inherently wrong with the life insurance agents who just cant bear to tell you the truth for fear they may not make the sale. Let me narrow it down for you. The products, sold correctly, are solid and dependable. It will do exactly what you want it to do. It is guaranteed to perform. The problem is not with the product!
So, all of this begs the question, why would an agent sell you something that can fall apart without warning in the future?
Life insurance is a tough business. Most agents don’t make it through their first year and a very small percentage could actually be considered successful by anyone’s standards. For most agents the difference between making a sale and not making a sale can be the end of their career.
The easiest way to make a universal life or whole life sale is to show the customer the non-guaranteed illustration at the lowest premium possible and hope you don’t ask about the other side of the page, the guaranteed side. Then if you buy, they hope you can’t remember their name, so that when the policy unravels, they won’t have to answer the question above.
Use a reputable independent life insurance agent and insist on guarantees. Get it in writing and insist that your agent review your policy with you annually.
This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.