A good friend of mine joined the financial planning line a year ago. We used to talk everyday but ever since he sleazed up to me one day and said, "Hey, Andy... are you insured?" I've never spoken to him since. My worst fear in life is to be a retail financial planner - cold calling random people, peddling term and life insurance products. I think the problem with insurance broking is that when you're 20 - 30 years old, thoughts of impending death is as far away from your mind as snow is in the Sahara. You're more likely to encounter such thoughts as you get closer to the terminal end of your life.
Sure, premiums are cheaper when you're younger, but are they really in relative terms? If your income is $2000 a month, and you're setting aside $100 into a policy with NO-growth in terms of returns, other than the fact that at some later age, you can now access all that money - well, its not really the most attractive of options.
We do have the option of buying into an Insurance-Investment Linked Product. You pay $100 a month or so (depends on your age and lifestyle habits really) and they guarantee some form of capital protection and some degree of investment returns as well as general life insurance. (that's not too bad.)
On the other hand, if you're relatively more senior and you're depending on your pension as your primary source of income, buying insurance to leave a little nest egg for the grandkids might not be that optimal choice considering that most of us are living longer and our pension incomes are likely to be lower due to inflation and higher standards of living.
Never fear, though, if you're of the age, and you're living longer, pinching together some pennies to ensure your grandkids have a little nest egg to carry with them when you're gone might not be such a good idea.
If you're a reasonably fit, grandpappy or grandna, there should be no reason why the rates can't be as competitive. Shop around. (If you've landed on this blog, congratulations!)
On the internet, there are sites which provide quotes or rates on life insurance. Based on a principal sum to be paid upon death, they'll get quotes offered by general insurers and tell you what your monthly outlay will be like to guarantee payment of X dollars upon death. They don't necessarily sell this products or underwrite them. These sites simply act as gateways for people who happen to land on their page looking for quotes, rate or general financial planning advice.
If you're over 60, and in the market to give something to your offspring why not just fill up a simple, anonymous form and see what kinda quotes they will offer you.
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