Who Said Whole Life Insurance Policies Are Abandoned
Many whole life insurance policyholders tend to abandon their policies and lose their
investment after paying so much for insurance and investing in the future. They may find a more appropriate policy for them and be aware of the different things that cause other policyholders to abandon their investment. One would think that this would not happen, as the investment is typically a rather large amount of money that is invested in their family's future and financial well beings after they are gone. Though, if policyholders are informed of the different reasons why people dump their policies. Aside from the standard and reasonably understandable reasons such as the policyholder has lost their job and can no longer afford their policy, or they got a divorce, there are other reasons as well. In time though, they often find a more appropriate policy that pays off much more in their benefit for a lower payment price. In many cases insurers get a lower premium policy, which doesn't pay off as much, but has a low pay
One of the most common reasons that whole life insurance policy holders abandon their policies is because they have found another insurance company or policy which offers a lower monthly rate for the same or higher premium.
Here are also some differences between the women versus the men policyholders though men tend to purchase more whole life insurance policies than women, and make the long-term commitment; women have a tendency to abandon their insurance policy in the first year. Women are quickly catching up though in recent times though, and it wouldn't be a surprise that surpass them in future years. Studies have shown that men buy about 56% of all policies.
Many people tend to the abandon their whole life insurance policies is due to the payment plans and people that pay one lump yearly payment rather than the regular two to four yearly payments tend to stand by their whole life insurance policies longer. Approximately 18-23% of frequent payments are abandoned in contrast to the 10% of yearly payments. Research shows that the possible reason is how "painless" it is to make one monthly payment than to budget for numerous payments.
Most importantly, shop around and get informed on which insurance policy is best for the insurer, and of course, make sure that they discuss with their current insurance company if they are faced with hardships and are considering abandoning. Overall, it's good to be informed and be aware of the reasons that people abandon their whole life insurance policies. This will help them get prepared for years to come and how to face the difficult times and understand possible complications that they may face.
by: Iftikhar Tirmizi
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