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| ★ wanayoo — archive 1999 http://www.fool.com/insurance/insurance.htm | Nouvelle recherche | Portail wanayoo |
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Fool Insurance Sure, it's dull, grim, and confusing. Counting pennies (dull) to prepare for death (grim) while trying to time your demise and your dependents' needs (confusing, not to mention grim) is enervating stuff indeed. Add to that the insurance industry's compensation structure, which rewards its agents for selling you more than you need, and you can see why this is a topic that is perfect for Fooldom. A few quick points to get you started: 1) Insurance is not an investment. Period. End of discussion. It's not an estate planning tool. It's not a "wealth accumulator." It won't unclog your sink or declaw your cat. In short, it is a financial product that protects against the financial consequences of a loss. We cover in detail what it is and what it is not here. 2) Ask your insurance agent how he will be compensated for the products he is trying to sell you. If you don't get a straight answer, head for the door. The more you know about how he makes his dime, the less likely you'll be buying needless products that fund your agent's lovely summer home in Nice. 3) Insure the right stuff for the right amount. Should you buy insurance to cover your credit card debt in case you kick off while you still carry a balance? No, because guess who really benefits from it... Bingo! The lenders. They routinely write off losses from dead people, as you'll discover in Step 6. And should you really try to leave your loved ones a lottery-sized inheritance? Absolutely not, as we discuss in Step 8. 4) As with every area on our forum, a community of Fools awaits your every insurance conundrum. Don't be shy about asking questions or posting replies. And now onto our nine Foolish Steps to understanding and purchasing insurance. -- Dayana Yochim (TMF School)
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