31 July 2014 0 Comments

When Feel Good Vanishes

shutterstock_81547240Having discussed how the purchase of life insurance should, and usually does, produce an everlasting good feeling, I’d be less than honest if I didn’t admit that that is not always the case.  There are times when the life insurance purchaser becomes engulfed in buyer’s remorse, or at least uncertainty. “Did I buy the right policy?”  “Can I really afford this?”  “My cousin seems to have a better deal.”

When this happens, before you rush to the incinerator to dispose of your policy, pause.  What has suddenly caused your self doubt?  If it’s another insurance agent, consider that agent’s motive.  Though it might be a desire to provide you with the best policy, it might also be spurred on by the commission to be earned if you replace your current policy with one recommended by him.  Always ask the agent who is promoting the new policy to put his recommendations In writing:  what is wrong with your current policy and why is the one he is recommending better?

Ask the recommending agent if it’s alright to show his written rationale for replacement to the agent who sold you the current policy.  If it’s the original agent who is suggesting to replace the policy he sold, tell him you might get a second opinion from another agent.  Now, this agent won’t necessarily be thrilled with this notion, but he should feel confident enough about his reocommendation to withstand another agent’s review.  You don’t necessarily need to follow through with this threat, but at least check out his reactions to the suggestion that you might do so.

As a general rule replacing one term policy with another to obtain lower premiums, or replacing permanent insurance with term to obtain more protection, can make sense. Replacing one permanent policy with another permanent policy is often questionable.  One way or the other, your life insurance coverage should be producing that good feeling.  Get it right!

Next…why you may not qualify for the lowest premium.

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