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Term Insurance Comes Under Fire

Term Insurance Comes Under Fire

Four out of five advisors sell term life insurance to their clients. But as terms get shorter and renewal rates trend upwards, clients may be better off buying whole life instead

Term life insurance, which comes with no cash value savings account, is the cheapest insurance with the largest death benefit. But term life policies also present serious problems due to higher costs upon renewal. Term insurance premiums are on the rise, thanks to low interest rates on insurance company investments; some clients may be better off buying permanent life insurance.

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TAGS: Insurance
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