Nevada NV Life Insurance
Reader’s Question:
My insurance agent in Nevada is offering a cash value policy. What are the things I need to know before I make the purchase?
Kathy
Henderson, NV
First, you better ask yourself if the proposed annual premiums is within your budget and reflect if you can commit to pay these premiums over the long term, perhaps for decades. Better to know how much you will receive in case you surrender the policy.
Ask your insurance agent in Nevada to tell you in writing the reason why she/he is recommending cash value insurance. This way, the insurance agent will be able to answer why you should combine your life insurance protection needs with investment objectives. Also, have your agent prepare an analysis for you that shows true cost of the cash value insurance policy being offered to you over 5, 10, 15, 20, 25, 30 years as opposed to buying term life and investing the difference in long term bonds over the same periods. Know your commission on the first year against your commission on an equivalent term life insurance policy.
The important thing here is that you know what you are paying for and you’d know what to do with it in the future.
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