Life Insurance Sense and Nonsense
Introduction
Before listening to the Sirens' song, Homer's Ulysses
took the sensible precaution of having himself tied to a
mast. It's a pity today's consumers can't do the same before
listening to the hype of life insurance sales pitches; sturdy
masts might prevent people from buying policies they
should avoid and dumping policies they should keep.
Fortunately, sturdy information can do the same thing, and
it won't get your clothes dirty. This brief discussion of a
complicated subject will help you listen to the Sirens of the
marketplace without losing your head (and your money).
The first section describes the common uses of life
insurance in three broad areas: protection, financing, and
investment. We won't dawdle here.
The second section tours the main types of life insurance
available today, with emphasis on cash value products.
If you understand how your bank checking account works,
you'll have no trouble with this.
The third section takes a hard-nosed look at what salesmen
call the magic of life insurance. This includes new and
existing policies as well as the merits of second-to-die versus
single-life coverage. There's a lot to slog through, but it does
end eventually.
The fourth section offers practical guidance on how to shop
for life insurance. In particular, it explains several ways to
transfer money from the salesman's pocket to yours. That's
your reward for spending time reading about life insurance
when there are so many more exciting things to do.