Permanent Life Insurance 2012

The seas part in two when a debate on "permanent life" versus "term life "begins. A never ending debate that has gone on for long, there's an insider saying in the insurance industry that sums up how polarized people get when talking about permanent life insurance solutions: Those who know nothing about life insurance? buy permanent life; those who know little about life insurance buy term life, those who know a lot about life insurance buy permanent life. The primary argument against whole life insurance has been the steep fees and commissions that get pocketed by the agent that sold you permanent life in the first three years. Then, unlike other investment options that allow some flexibility to pull out and use invested money at free will, there are huge surrender costs to prematurely pulling money out of a permanent life policy before 8 to 10 years are up (this differs from policy to policy, with a strong emphasis on keeping the money inside the policy for as long as it takes, and only withdrawing in the case of dire emergencies). And finally, return rates on permanent life have always trailed along at snail's pace when other money market funds were pulling in anywhere between 8%- 12% (on the lower end) in a more robust economy.

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