Insurance agents are paid based on product sales. When they sell policies, they earn a commission. Some products pay a higher commission than others. Term life insurance pays a relatively low commission since it is the lowest cost life insurance option and provides the biggest bang for your insurance premium dollars.

As a result, your insurance agent will make less money if you take out a term life insurance policy. So, while other types of life insurance can make good financial sense, make sure you understand the logic behind those products and are sure, for example, a whole life policy is right for you. Your agent needs to make a living too – and at times his or her interests may be different than yours.