Subway11-I agree with you. For example, many advisors try to sell universal whole life insurance that offers a cash value and stray you away from term life insurance.
The reason is simple. Financial advisors earn high commissions on whole life policies and the investor pays significantly higher fees as well.
For example, a whole life policy that offers $300,000 of coverage might cost an investor about $400 to $500 a month.
However, a term policy with no cash value for the same level of coverage for a period of 20 years charges only $45-60 dollars per month.
While the term policy offers no cash value the difference in what you pay for whole life insurance policy and what you save with the term policy if put in the stock markets earns a much higher reward than any cash value offered in this type of insurance product.
This is just one example of why it is best to seek a fee-based advisor that has no financial gain in the products he or she is selling. Investors should avoid situations that yield a high conflict of interest.