Why do term insurance plans do not find favour with people whereas this is the real insurance to purchase?

It is very surprising to note people's repulsion for term plans in general. Just because you get your money back in other endowment plans or other money back or even unit linked plans, it does not make it the best insurance plan for pure insurance need. I wish I could instill more common sense in people in general.

Public Comments

1. Because agents make more money off of whole life/universal life policies. Don't get me wrong - not all life agents are money grubbing worms - it's just that they've been "spun" the marketing line and fallen for it. "Oh, whole life is a forced savings plan" kinda deal. Also, there ARE cases (very few) when whole life is the appropriate vehicle - depending on the GOAL of the insurance. But most people don't set the goal, THEN shop for the product - they look at the product, and see how it fits what they think of as their needs. Completely backwards. But the bottom line is, most of the time it's easier to let someone else think for us - and then, you're JUST not going to get the best deal, most of the time. You'll get the deal that's best for the OTHER guy.
2. I agree with the last post. Whole / Universal ( CV ) policies make more money for the agent. In my professional ( CIC ) opinion a Term Life Policy is the best insurance value out there. The savings/investment element in cash value policies is an expensive way to invest. It takes years to build up any cash value ( CV ) and if you want the money you need to borrow it at interest or retire the policy. While it is true that CV, if there is any, can be used to pay the premium, the cost is high. Most Life policies are never collected on, they either serve a temporary purpose, lapse for nonpayment, or are returned for any CV . Having said that, CV policies will cover you for your entire life at the same premium. A Term policy can last up to 20 years and then have to be replaced. When you are over 50 the cost will be huge. The above is very general and everyone has different needs when it comes to insurance.
3. Because term's not the answer for everybody...I agree with the lovely Ms 'Catz though...Agents push products for various reasons, and people definitely try and mold their needs to fit a product rather than trying to find a product to fit their needs... I think the main problem that I see on a daily basis is that people think insurance is confusing, and difficult to understand, and especially, that they believe the company wants to screw them out of their money...(I won't speak for health insurance here, because my own health insurer is run by Satan, in my opinion! *grin*) Maybe because it's intangible... Insurance isn't confusing...It's just boring...