From: "John A. Weeks III" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Universal Life Insurance
Date: 25 Jul 2004 15:10:01 GMT
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In article , BMS
 wrote:

> Why did he recommend life insurance? Who is the agent?

Because (a) that is probably all he sells, and (b) he gets a monster
sized commission for selling it.  The commission often is larger than
all of the premiums that you pay for the first year.  This is like
buying a $20,000 car, only to see the sales person get paid $25,000
for selling it--that would seem kind of fishy, wouldn't it?

> If the answer to all 3 is none and you don't have other investments yet, a
> UL policy is probably not a good first step. Give us some details and we
> offer ideas.

Studies by consumer groups have shown that universal life policies
are almost never a good investment for a typical person.  The first
step is for the original poster to determine if they really need
life insurance.  Who would lose if he were to die?  If the answer is
no one, then it is likely that he really doesn't need insurance.
The 2nd step if he does need life insurance is to buy term life.
The 3rd step is save and invest to accumulate enough money so he
can drop the insurance.

-john-

-- 
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John A. Weeks III            952-432-2708         john@johnweeks.com
Newave Communications                       http://www.johnweeks.com
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