Life Insurance

[npalen]

It's THEIR money until you kick the bucket.

 

[Deere Dude]

Had a $5000 whole life policy at 18 yo and kept it until around 30 and cashed it in for close to what I paid. Then I went on a cheaper 25k term ins. policy as suggested by friends and supposedly invested the savings.

Then a year or two later the insurance man came out to see if everything was adequate and maybe to tweak the policy. Before to long he said I needed a 50k policy for various reasons. I told him I am not trying to make my wife's new boyfriend rich, which he didn't see the humor in that. He pressed the issue and I told him I didn't want the $50k policy and now that I think of it, I don't want that $25K policy either. He took his stack of papers in his hand and threw them up to the ceiling and said, "You are going backwards."

I canceled it and figured as long as I had enough to bury myself and enough for the wife for a year or so that's all I need. I don't regret cancelling it. Of course later I stuck money in the stock market, then it really went backwards, but at least I wasn't keeping an agent in new cars.

 

[k0ua]

It's THEIR money until you kick the bucket.

That isn't true.. You can surrender the policy for the cash value.

 

[k0ua]

Had a $5000 whole life policy at 18 yo and kept it until around 30 and cashed it in for close to what I paid. Then I went on a cheaper 25k term ins. policy as suggested by friends and supposedly invested the savings.

Then a year or two later the insurance man came out to see if everything was adequate and maybe to tweak the policy. Before to long he said I needed a 50k policy for various reasons. I told him I am not trying to make my wife's new boyfriend rich, which he didn't see the humor in that. He pressed the issue and I told him I didn't want the $50k policy and now that I think of it, I don't want that $25K policy either. He took his stack of papers in his hand and threw them up to the ceiling and said, "You are going backwards."

I canceled it and figured as long as I had enough to bury myself and enough for the wife for a year or so that's all I need. I don't regret cancelling it. Of course later I stuck money in the stock market, then it really went backwards, but at least I wasn't keeping an agent in new cars.

So you cut off your nose to spite your face? And then you invested in the stock market and really went backwards? Okey Dokey. You sure showed him about them new cars huh?:laughing:

 

[sodamo]

That isn't true.. You can surrender the policy for the cash value.

My understanding, and I could be wrong. If you surrender the policy you lose the insurance benefit. If you borrow against it, you payback time time interest. If you don't payback, the insurance benefit at death is reduced by the amount borrowed and any interest owed.

While great for the beneficiaries, not so good for the insured.

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[k0ua]

My understanding, and I could be wrong. If you surrender the policy you lose the insurance benefit. If you borrow against it, you payback time time interest. If you don't payback, the insurance benefit at death is reduced by the amount borrowed and any interest owed.

While great for the beneficiaries, not so good for the insured.

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Of course.. the word surrender means to "give up" So when you surrender the policy you no longer have the coverage. Of course there are many types of polices. As an example the "return of premium" This is typically a term policy but instead of having nothing at the end of the term, no coverage AND no cash value, with return of premium, you have the coverage for the 10, 20 or 30 years whatever the term is that you took out and at the end of that term the insurance company returns all of the premium you payed in for all those years.

 

[k0ua]

Here is another unique policy, this is a simple policy with a face value of $60,000. When you reach 65 years of age, the insurance company pays you $20,000 cash and gives you a "paid up" whole life policy of $20,000 for the rest of your life. The idea of this is that you have the coverage you might need during your productive years, you gets some cash at age 65, and have a 20,000 final expenses policy that you are done paying for as it is "paid up"

 

[Pixguy]

That isn't true.. You can surrender the policy for the cash value.

So the company charges additional fees to force you to save but if you want the "savings" you lose the death benefit?

 

[k0ua]

So the company charges additional fees to force you to save but if you want the "savings" you lose the death benefit?

Yes. Why would the insurance company be interested in insuring you for all of those years for no profit? They will always make a profit, not on each insured, but in the long run with a pool of insured. and have money to pay their agents and office personnel. The way to beat them at their own game is to die. Then you have showed them! But they got that dieing thing pretty well figured out.

 

[kenmac]

Some of my HVAC / Plumbing business is with those home appliance insurance companies.. Like life insurance,, they will lose on some, but in the end ,, they ain't gonna lose,,they know the odds ...
As I said earlier, my wife & I have a small term life policy... I think it will probably expire out B-4 I die.. If it does,,, I'll be ok, because I invested & made more with the $$ I saved over whole life..