Research shows many misunderstand financial products

Nov 22, 2010

It's important to understand financial products

It's been said that knowledge is power. That statement couldn't be more true than when it comes to personal finance. A study commissioned by a major life insurance company found nearly 70 percent of respondents failed a quiz regarding financial products.

In terms of life insurance, less than 30 percent knew the coverage could pay dividends. Such a misunderstanding can impact one's finances, says Dave Simbro, a representative from the company.

"Permanent life insurance offers everything people say they're looking for - growth, flexibility, and guarantees - yet many people do not fully realize how versatile this product is," says Simbro.

On the other hand, nearly 90 percent of respondents understood the concept of diversifying investments.

It's important for consumers to educate themselves on various life insurance policies and other financial products to get the most out of their money. Some plans are a better fit than others depending on an individual's personal situation.

There are a variety of websites and books consumers can use to help become better informed on available offerings. People can obtain life insurance quotes online or by consulting an agent in person.

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