In the life insurance business, there are highs and there are lows in activity. There are several factors that traditionally contribute to this ebb and flow, but lately there have been some anomalies that are affecting the life insurance sales industry. In this article, I will examine some reasons why insurance sales would be on the rise or why they are currently in a lull.

Back a few months ago, when it was the beginning of summer, I expected a downturn in business as I always can anticipate in the summer season. Summers are slow as far as life insurance sales because people are either on vacation or they’re just too darn hot to get out and meet with a salesman. What’s more, the life insurance salesman too is on vacation. The agents usually go out and enjoy the nice weather and take the summer off to golf or maybe meet with prospects in a more relaxed atmosphere. Well, the summer is over (as far as the calendar is concerned), but the weather is still fine outside - at least in the South. At any rate, business is still running at a slow pace.

Speaking for this particular month (September 2005), it very well may be that since consumer confidence is down to an all time low since 1990, hurricane Rita and Hurricane Katrina just ripped through, and the fact that gas is at an all time high, consumers are thinking less about the future (life insurance) and more about how to keep afloat right now.

On a more global scale, perhaps life insurance sales are down because of the war in Iraq or the tension between the USA and other Countries.

Also, could it be that the “me” generation is getting its way? Are folks just not thinking about the welfare of their families as much?

One thing that has impacted the service industry in a huge way is the “do not bother me” mentality that we’ve all adopted. The do not call list, do not fax list, and no soliciting signs are crushing an industry that once thrived and depended upon these methods of communication. The life insurance agent or broker faces a real challenge where this is concerned.

So what can we do to boost sales? Can the companies help? My opinion is “yes”, the insurance companies CAN help to boost business. Just recently, Prudential has aired a consumer awareness commercial about the importance of life insurance where a boy asks his Father “Dad, do you have life insurance?”. I propose that we, as agents and general agents rally the insurance companies and get them to raise awareness and create desire to protect wealth, secure businesses well-being, and promote a better future.

By: Ashley Brooks, CLTC

Ashley is the marketing vice president for the Family Life Insurance Brokerage Business and has a background in Health & Financial Underwriting, Insurance Plan Design, and “best deal” shopping. Brokerage Services carries only A rated (or better) companies in their product portfolio and has been serving the needs of Independent Insurance Agents since 1977.

Get a free online term life insurance quote from Ashley Brooks here Term Life Insurance Quote

General Life Insurance Quote Agent Online Here: Life Insurance Quote

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When you want to purchase a life insurance policy, you really do need to do a life insurance comparison. This is to ensure that you get the best possible rates and the best possible life insurance for your needs. Different life insurance companies sell different types of policies so you need to do a life insurance comparison of all the different types available. You also want to get a policy with low cost premiums.

In a life insurance comparison, you have to decide whether you want variable universal life insurance or whether you will ask for a low cost term life insurance quote. There is a vast difference between the two. Term life insurance is only good for a specific period of time. If you do not die within that term, then the life insurance policy expires and you will need to renew the policy or purchase another. Variable universal life insurance lasts for your whole life and has options included to help you make money on your life insurance.

With all the life insurance companies online, it is not difficult to do an online life insurance comparison. If you are looking for term life insurance, then you can request a free quote for low cost term life insurance. It is advisable to have at least three quotes so that you can do a comparison of the settlement and the premiums offered by each one.

A life insurance comparison, whether it is for term life insurance or variable universal life insurance, also means that you need to do a comparison of the monthly premiums you have to pay. Since most people look at the amount of money that they need to budget for each month, they want this premium to be as low cost as possible. With variable life insurance, the amount of the premium changes according to market conditions, so it may be a little harder to budget for, but it works out to be more low cost than term life insurance.

Whatever you need in life insurance, you have to make sure you are comparing the same thing when you do a life insurance comparison. For example, a comparison of quotes for low cost term life insurance with those for variable universal life insurance would be like comparing apples and oranges, since they are not the same at all. You have to make sure your comparison is for the same type of life insurance and for the same length of the term. Otherwise, you are only wasting your time.

A proper life insurance comparison is essential.

For a website totally devoted to Life Insurance visit Peter’s Website Life Insurance Answers and find out about Term Life Insurance as well as Cheap Life Insurance and more, including Online Life Insurance, Term Life Insurance and Life Insurance Agents.

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The most alluring aspect of whole life insurance besides its death benefit is its investment value. The insurance company will take a portion of your premiums and invest it. As that portion grows in value so will the cash value of your insurance policy.

Many policy holders who reach a stage where they no longer have dependants can greatly benefit from the rise of the cash value of their policies.

Legislation allows policy holders to withdraw the cash value of their policies and enjoy those proceeds tax free. The way that it works is that the policy holder is actually borrowing the money from the policy. The insurance company will then cover the loan from the proceeds of the death benefit, which are usually greater than the cash value of the policy.

So if Mr. Z reaches the age of 65 and no longer had dependants he might decide to withdraw the cash value of his policy. Let’s say that the cash value of his $1,000,000 policy is $200,000. He could withdraw the $200,000, use it tax free, and then let the insurance company recover the money from his policy when he passes away. The difference would go towards his designated beneficiaries.

In effect he is giving his insurance company money that they are investing for him, a portion of which can become a tax free windfall years later.

But another school of thought says buy term and invest the rest.

In other words, buy term life insurance because it is substantially cheaper than whole life insurance. You would then use the money that you saved and invest it yourself.

The theory behind this strategy is that the individual investor can obtain much better returns than an insurance company can, and he will save the investment fees that the insurance company charges its policy holders.

Or an alternate approach would be for the term policy holder to use his savings and invest it in the purchase of a house, his own business, or place it in a mutual fund.

Donny Lowy manages http://www.americanlifedirectonline.com an online term life insurance portal.

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