Current Events > Is life insurance a scam?

(+) Yeah! (+)

Nt.

Yes because dying is free for the dead person

Irony posted...

Yes because dying is free for the dead person

French Exit...

It's more like legalized monetization of one's anxiety.

Yea, if you're forever alone and live with your parents.

bknight posted...

Yea, if you're forever alone and live with your parents.

Life insurance can go to your parents

I assume so, if you use MAID they won't give it to you. Same for suicide. But those are legitimate ways to die.

Supersex420 posted...

I assume so, if you use MAID they won't give it to you. Same for suicide. But those are legitimate ways to die.

Life insurance typically pays out for suicide if the policy had been in effect for at least two years.

Only if capitalism itself is a scam.

ellis123 posted...

Only if capitalism itself is a scam.

Boy do I have news for you

So, it's no boon

Yes. People kill each other for life insurance pay out.

kage_53 posted...

Yes. People kill each other for life insurance pay out.

In movies

All insurance is a scam

Whole life insurance tends to be a scam, get term if you need to leave enough money for your wife/kids to pay off a mortgage and get the kids through college. If you outlive your term insurance, then you lost all those premiums, but at least your family wasn't screwed if you died. You got to go in thinking of life insurance as insurance, not some legacy gift guaranteed to pay out.

They make whole life insurance sound that way, a guaranteed insurance that will pay out, but if you crunch the number, the added premium you pay on top of the cost of insurance would probably be better off just being invested into the market for your wife/kids or thrown into your own retirement fund.

No. It's a safety net for your family, and even for yourself, if you don't feel like keeping it, or need the money. You can just sell your share and get 5-6 figures out of it.

Sheiky-Baby posted...

You can just sell your share and get 5-6 figures out of it.

I'd be tempted to do this, but I imagine would-be buyers generally aren't interested in the policies of young or middle-age adults in good health

No, but its not like it's gonna help you in the afterlife.

The reason I made this topic because a friend's friend or whatever tried to sell me a life insurance policy. And she became quite hostile, rude and aggressive about when I told her I wasn't interested.

So my friend brought her over to my house without me knowing. He was helping her find potential customers. She brings out her laptop and all her portfolio and paperwork going on about how cheap her life insurance policies are and I should buy it now because I get older and it will cost more. She also brought up the investment part of life insurance and it's called Index Life Insurance where you pay a higher premium which will have an average of 12% returns. She argued that the returns are the best right now and many people are taking out their 401k just to pay into this Index Life Insurance instead.

It all sounds way too good to be true and I'm no pro at finances especially at this level so I told her I'll get back to her. She then got hostile and personal asking me my yearly salary, what bills I pay and how much I have in the savings. She directly told me I could afford life insurance and should definitely get it now instead of later. I told her I wanted to do some more research before I make this decision. She was trying hard to convince me buying life insurance is a no brainer and everyone should have it.

Told her I'll give her a call if I want to buy. She left pissed off.

Eh, depends on your lifestyle and job, really.

I pay like $50 a month for $550K in life insurance coverage($500K is work provided). If I die, my family will be doing p well for a while.

If you do it smart though, you get it for other people like your parent(s), child, grandchild, spouse. So that if tragedy strikes, you're not left in a waking financial nightmare.

As for your situation, that sounds a little good to be true.

VeggetaX posted...

The reason I made this topic because a friend's friend or whatever tried to sell me a life insurance policy. And she became quite hostile, rude and aggressive about when I told her I wasn't interested.

So my friend brought her over to my house without me knowing. He was helping her find potential customers. She brings out her laptop and all her portfolio and paperwork going on about how cheap her life insurance policies are and I should buy it now because I get older and it will cost more. She also brought up the investment part of life insurance and it's called Index Life Insurance where you pay a higher premium which will have an average of 12% returns. She argued that the returns are the best right now and many people are taking out their 401k just to pay into this Index Life Insurance instead.

It all sounds way too good to be true and I'm no pro at finances especially at this level so I told her I'll get back to her. She then got hostile and personal asking me my yearly salary, what bills I pay and how much I have in the savings. She directly told me I could afford life insurance and should definitely get it now instead of later. I told her I wanted to do some more research before I make this decision. She was trying hard to convince me buying life insurance is a no brainer and everyone should have it.

Told her I'll give her a call if I want to buy. She left pissed off.

Yeah that honestly kinda sounds like a scam. Whether or not life insurance is a good idea, IUL is typically not a good investment

No but car insurance is. As it's the only insurance you are forced to buy. And if you never get in an accident, they keeps your tens of thousands of dollars you pay over the years. Or if you get into a minor accident, something like a bump dent, you could had instead paid it yourself but now have to go to insurance and get your policy price raised on top of it.

It makes sense to have a term policy if you have dependants. If it's just you you're better just having a critical illness policy.

Term is. The others can be depending on various factors. IMO everyone should get LI to help cover funerary costs, and most of all to alleviate the financial burden of life for trusted loved ones, and especially any children you may have.

VeggetaX posted...

The reason I made this topic because a friend's friend or whatever tried to sell me a life insurance policy. And she became quite hostile, rude and aggressive about when I told her I wasn't interested.

So my friend brought her over to my house without me knowing. He was helping her find potential customers. She brings out her laptop and all her portfolio and paperwork going on about how cheap her life insurance policies are and I should buy it now because I get older and it will cost more. She also brought up the investment part of life insurance and it's called Index Life Insurance where you pay a higher premium which will have an average of 12% returns. She argued that the returns are the best right now and many people are taking out their 401k just to pay into this Index Life Insurance instead.

It all sounds way too good to be true and I'm no pro at finances especially at this level so I told her I'll get back to her. She then got hostile and personal asking me my yearly salary, what bills I pay and how much I have in the savings. She directly told me I could afford life insurance and should definitely get it now instead of later. I told her I wanted to do some more research before I make this decision. She was trying hard to convince me buying life insurance is a no brainer and everyone should have it.

Told her I'll give her a call if I want to buy. She left pissed off.

Typical salesperson.

They couldn't give two shits about your finances. They also tend to promise the world, but leave out the fine print or bait and switches.

Also no offense to your friend, but what they did was a pretty ass thing to do. If I invite you to my house, don't invite an extra to fucking sell something to me. The fuck?

It's not, and I highly recommend you get one.

Yes there are life insurance policies that work like investment accounts, and yes it's cheaper to get in on it when you're young. Sounds like she was overly pushy but I don't see anything she said that was wrong or misleading.