What are the bad or negative points about life insurance?

Question

exp: delay of receive claim, bad services from insurance agent...

Answer 1

You are reading the small print and that's great! The small print explains the contract and the rules. Even for lawyers, insurance contracts can be hard to understand!

Most of these questions should be answered clearly by the representative who is trying to sell you the contract. If you don't have one, contact the company who's contract you are reviewing and ask for one.

Keep on asking the questions until you have completely understood everything clearly. If something is not to your liking, get a quote from another insurer. Keep at it until you are completely satisfied of contractual terms and fully understand them.

Ask the rep to summarize the 10 negative aspects of contracting a life insurance. If he say there aren't any downsides, dismiss him, he is only trying  to get you to sign.

Life insurance is ok, provided you don't interrupt the contract and provided you choose one that is adapted to your needs. If you stop with life insurance before the end of the contract, you lose money.

Take your time, don't let them pressure you into signing. Whatever you do, try to honor the contract in full, right to the end of the term, that way you will reap all the benefits it contains.

Answer 2

'10 negative aspects....'  It's life insurance...if you die they pay $X and if you don't, they don't.  I don't think I could come up with 8 others items that even describe it...positive or negative...

Anyway, use the tool on my web site and you can compare ~150 different companies which is certainly faster than meeting with ~150 different insurance agents.  It also gives you the company ratings right there.

If you're looking for things to avoid, just avoid overpaying and make sure if you don't initially pick a policy that will last until you're 100 years old make sure your policy can convert to one later.

Answer 3

Well it really depends on what you are looking for. There are several types of life insurance. You have whole, Universal, and Term. You need decide what you are looking for. I would definetly shop around and make sure you purchase from a reputable company. If you go to any of the major life insurance companies like Priamerica, Western Reserve, or just go to a search engine and type in Purchase Life Insurance I am sure they will take you to some very reputable Insurance companies.