Except for the whole policyholder dying thing.Term is 100% profit for the insurance company
That's gotta cut into profits.
Except for the whole policyholder dying thing.Term is 100% profit for the insurance company
I have a coworker who is using term life as an investment. You heard me correctly.trueblueky wrote: ↑Mon May 14, 2018 6:15 pmExcept for the whole policyholder dying thing.Term is 100% profit for the insurance company
That's gotta cut into profits.
kenyan wrote: ↑Tue May 22, 2018 4:20 pmI have a coworker who is using term life as an investment. You heard me correctly.trueblueky wrote: ↑Mon May 14, 2018 6:15 pmExcept for the whole policyholder dying thing.Term is 100% profit for the insurance company
That's gotta cut into profits.
He's over 70, and is holding a policy to try to increase his inheritance. He figures that if he dies in 10 years, he's 'earning' something like 8% or more on his investment. I don't know all of his numbers, but he did mention that his annual premium, at least for last year, was close to $50,000.
http://insurancelaughs.blogspot.com/201 ... -joke.htmlSmithy explained the basics of the GI life insurance policy to the new army recruits, and then said: “If you have the GI life insurance policy and go into battle and are killed, the government has to pay $200,000 to your beneficiaries. If you don’t have GI life insurance, and you go into battle and get killed, the government only has to pay a maximum of $6,000.
Now,” he concluded, “which group of soldiers do you think they are going to send into battle first?”
Yeah, his strategy is mind-boggling to me. From what I know, he never intends to stop working, is somewhat obsessed with leaving a lot of money to his family, and is earning far too much money for his current level of contribution - I know he's pulling in a full pension at the same time, and my company, for a given pay grade, essentially pays people based upon age, not performance.inbox788 wrote: ↑Tue May 22, 2018 4:36 pmkenyan wrote: ↑Tue May 22, 2018 4:20 pmI have a coworker who is using term life as an investment. You heard me correctly.trueblueky wrote: ↑Mon May 14, 2018 6:15 pmExcept for the whole policyholder dying thing.Term is 100% profit for the insurance company
That's gotta cut into profits.
He's over 70, and is holding a policy to try to increase his inheritance. He figures that if he dies in 10 years, he's 'earning' something like 8% or more on his investment. I don't know all of his numbers, but he did mention that his annual premium, at least for last year, was close to $50,000.
There's issue with viatical settlements when a 3rd party is betting on a poor outcome, but when the policy holder is doing it, it's even more concerning. What is this guy doing? Driving fast and recklessly? Rock climbing? Bungee jumping? Sky diving? Overeating fatty and fried foods? Not exercising?
I'd take the insurance company side of the bet. They know what they're doing. Chances are he'll be half a million poorer in 10 years, but at least he'll be alive to complain about it.
http://insurancelaughs.blogspot.com/201 ... -joke.htmlSmithy explained the basics of the GI life insurance policy to the new army recruits, and then said: “If you have the GI life insurance policy and go into battle and are killed, the government has to pay $200,000 to your beneficiaries. If you don’t have GI life insurance, and you go into battle and get killed, the government only has to pay a maximum of $6,000.
Now,” he concluded, “which group of soldiers do you think they are going to send into battle first?”
This is a point I have made before:gmaynardkrebs wrote: ↑Mon May 14, 2018 11:43 am... more importantly, due to the cost, the amount of insurance purchased is simply inadequate to the need.