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  1. #1
    Join Date
    Jul 2010

    Buy term life insurance

    8 Years ago i looked at selling Insurance. Glad I didn't. Did learn one thing though. ALL LIFE INSURANCE IS TERM. Whole Life and Universial Life is basically TERM Insurance with added-ons to take more of your money.

    The agents want to sell Whole and Universal as thats were the money is for them.

    Look at it as if you were joining a bank. For 1 to 4 years you pay extra into Whole and Universal, yet have nothing in Cash built up, then after those 1-4 yrs(which the extra money is given to the company and the selling agent) you have a fund you can borrow from..say for a house..you can borrow upto the cash amount you have in that cash fund...yep, but you WILL PAY IT BACK AND WITH INTEREST. Its your but they want interest on it. Say you die and it wasn't paid back.
    Your family will have the outstanding amount plus interest deducted from the amout your term insurance pays you.
    Lets say you never borrowed but built it up. You die. Your family has a choice. They can either take the term insurance payment or the cash fund BUT THEY CAN'T TAKE BOTH. The cash fund will always be less then the amount the term insurnace poliy pays, thus they will never take it. The money built up in the cash fund then goes to...the insurance company.
    You paid extra for nothing.

    You pay extra on top of TERM insurance for a Cash Fund that for 1-4 yrs you have nothing built up. After that time you do, but it will cost you interest to borrow your own money and it must be paid back. You die and your family will never choose the Cash Fund so the company keeps it.

    ALL LIFE INSURANCE IS TERM. Just some have extra ways of taking your money.
    Ask your INSURANCE AGENT what they have. MOST will say TERM. They will claim..."I do have Term but only Because the Face Amount is So High, otherwise I would buy Whole or universal"...its a scam..

  2. #2
    Cornelius Guest

    Re: Buy term life insurance

    Something to consider is when is a permanent policy designed to pay out? When is a term policy designed to pay out? The cash value does not belong to the policy holder it is part of the policy design and belongs to the insurance company. Of course some policies do offer an optionto also get the death benefit at death but that there will be an extra charge. Have you heard of Return Of Premium term?

    If you bought your policy 8 years ago there have been some rate adjustments and it might be a good idea to shop your coverage. Many carriers have lowered their rates in the past few years.

  3. #3
    Join Date
    Oct 2008

    Re: Buy term life insurance

    There is always going to be this discussion because it is so easy for every nutcase on earth to jump on the "Whole Life is Bad" bandwagon.

    A couple of interesting things happened to me yesterday in this regard.

    My brother asked me; do you have 30 year term? I said sure and will work you up a quote which I did.

    Then he said; is there 40 bro because I may not be dead at age 80 when that 30 year expires. So what then?

    I said its over brother. Its a contract and that contract is over.

    I see, he said.

    I said anyway, you should be alright just as long as you don't bust out before you die; and you have enough to bury your ass.

    Then he told me how our aunt had a policy that didn't pay because she got it too late - she died 6 months too soon for that "final expense" ( which was purchased directly from the Insurance Company)
    to pay out.

    They had a tough time even paying the Funeral Home and there was nothing left to her heirs after settling with her credits cards and such.

    More on this topic later.....

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