Do Belong sensationalism in Personal Finance column

Just as our own mission to the LIFE Foundation, the work of a journalist personal finance should be to inform and educate people to help them make informed financial decisions. Yet in a recent article in SmartMoney (10 things life insurers do not tell you), journalist Jilian Mincer leads his readers to the conclusion that the life insurance industry is not to be trusted and may even be out enjoying yourself.

suggest that life insurers will not pay a claim when an insured dies is simply wrong. the life insurance companies pay billions of dollars in life insurance benefits each year. According to the ACLI, the life insurance beneficiaries received $ 59 billion in 09, which does not begin to take into account the amount of these same companies pay for pensions or disability insurance and beneficiaries the long-term care insurance. In fact, it's hard to find a better example of financial services companies that are well on their financial obligations, and looking for the best interests of their clients in the life insurance industry.

Life insurers are stable and regulated and in extremely rare scenario encountered problems, there are safeguards in place to ensure they will be able to keep their promises to policyholders. Pointing decades old, obscure situations only complicate the problem when there are stories everyday real people who benefit from policies and there are easy steps policyholders and beneficiaries can take to take responsibility to seek benefits they think they are due.

In addition, each time you hear one-size-fits-all financial advice, you know that you should not trust. Say "word is all it takes" only tell part of the story. the term life insurance is certainly a cost-effective way for many people to obtain life insurance, but there are situations where a professional qualified insurance would not advise either the only insurance product life into your financial portfolio. The parents of a disabled child who needs long-term care services for the rest of his life have a need for life insurance beyond 20 or 30 years, if they want to provide for that child after they are gone. Or what about the person who has a family history of heart disease and runs the risk of being diagnosed after their term insurance is exhausted? Permanent life insurance provides guaranteed insurability, not to mention the cash value that can be accessed no matter what life throws your way.

The latest figures from LIMRA show that nearly two-thirds of insured adults have some type of permanent life insurance. I doubt that many people so willingly let go of their money if they thought it was a bad deal. The truth of the matter is that people who purchased a permanent life insurance have taken the time to sit down with an insurance advisor they trust and assessed their individual needs and determined that it made sense.

Thirty percent of US households now have no life insurance and more than half (58 million) say they need more of the highest-ever level, according to LIMRA. This is not the time to be misperceptions that fuel which could discourage people from getting the financial protection they desperately need. It is simply unnecessary for a respected publication like SmartMoney have titles like "we're in bed with your boss" and "released does not mean that we will pay." Next time, leave the sensationalism and gossip columnists keep out of personal finance page.