- If you have no dependents, and don’t think you ever will, and have no desire to leave a legacy to anyone, this may not be for you.
- If your agent proposes a fixed death benefit, ask to see illustrations for both fixed and increasing death benefits.
- Discuss both fixed and variable rate loan options with your agent, and ask if you can switch loan types if you need to.
- All permanent life insurance policies have low liquidity in the first few years. If this is a problem for you, don’t put all your eggs in one basket.
- Don’t over commit on your minimum premium amount. If you were out of work for a couple of months, could you still pay your premiums? Having an emergency fund to cover short term problems is recommended. After your policy has built up some cash value, you can pay your premiums from the cash value.