Life insurance is not that complicated.
At least… it shouldn’t be.
Sometimes I wonder if Insurance companies are deliberately making things more complicated just to make more money from confused customers.
Who knows, right?
But the truth is, most insurance companies (and agents) do not have your best interests in mind.
It’s not their fault, it’s just the way their compensation is set up. They’re incentivized to give you more than you need. To write policies that (when you really think about it) aren’t necessary. And to structure things in such a way to maximize commissions, all too often at your expense.
The sad fact is that most people either have too much insurance (that they’ll never use) and are paying far too much every month in premiums.
I’ve seen cases where clients have been paying premiums on multiple policies… that give them no additional protection. A mistake that would cost thousands of dollars in wasted spend.
I don’t know about you, but if I could slash my insurance bill with no decrease in coverage, I would
Here’s one example of a policy that benefits the Insurance company at the expense of the customer. What I call…
The Biggest Dirty Little Secret of the Insurance Industry
Its something called Level Cover.
Level cover is a policy that suits everyone except you, the customer.
Life insurance gets more expensive as we age. The same policy taken when you’re 35 may cost you say 15 dollars a month, whereas at 65 it may cost you more like 90 or 100 dollars a month.
What level cover does is lets you pay 85 dollars a month all the way through, no matter how old you are. The same insurance coverage, and the same premium all the way through.
Insurance companies love this, because they get a very very high premium up-front, and of course the broker gets a commission on 85 dollars a month rather than 15 dollars a month.
But as a customer, you end up paying much much more than you need to.
For one, as most people get older their need for life insurance actually decreases. You have less mortgage to pay, you have less young children depending on you, you have more assets.
If you are paying level cover, you’ll be paying too much early on, and too much later as your need for life insurance decreases.
And here’s something they won’t tell you. Statistically speaking, most insurance policies tend to get canceled before their termination date. Maybe because of a marriage break up, loss of a job, whatever. In cases like that, you’ve paid all that extra premium up-front. But never get the benefit later on.
There are many mistakes people make when buying insurance. Not through any fault of their own, but it’s a jungle out there.
I’m doing what you could do for yourself, if you felt like taking the 100 hours to learn all the ins and outs.
Before I retired, I helped match prospective new home owners with private lenders who were looking for safe places to invest their money. In that business we often had to do in-depth review of a borrowers financial situation to find out just how much house they could realistically afford.
And more often than not, you’d be amazed at just how disorganized their situation really was. Especially the insurance. Paying too much for too little. Multiple policies covering the same thing. Often with a little common sense we were able to cut their insurance payments by 50% or more.
All this to say, I’m offering to do something that you could do for yourself if you felt like taking 100+ hours to learn all the ins and outs. But why not take advantage of my experience. Take the risk assessment quiz below. There is no obligation.
Let me help you get the right coverage for your situation. At the right price.
One more big mistake people make when taking out insurance that can cost you big time if the worst happens.
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