All Life Insurance Tips

Am I wrong to think that permanent life insurance is a major ripoff?

-Most premium goes to agent and company profit in the first few years. -penalty for trying to get out of the trap in the first few years. This is a nasty trick. - ridiculous cost (profit of agent and company) for insurance protection - borrow using your cash value as collateral at high rate. (don't have to pay tax? Is it really a benefit when you are borrowing and paying company interest?) - earn guaranteed interest arte after they skim off hugh chunk from your premium. They never want you to notice how much they keep and how little your premium goes to cash value - agent likes to present term to perm conversion as a feature instead of a trap, which is what it really is - agents pushing for cash value type insurance are either ignorant of what they are selling or intentionally misleading you with standard industry obfuscation - every feature/options are designed to milk higher premium to lure you into thinking that you are getting something good. Such as the cash value added to the death benefit - All the talks of cash value is, afterall, belonging to the insurance company, so what is the big deal? This is my impression only, the cash value insurance is one BIG ponsi scheme. It is called whole life because it is designed to make you a slave to the policy premium for your whole life.

Public Comments

1. Google: Suze Ormond - why I hate Whole Life Insurance. She likes Term. 10 or 20 year. Whole Life = huge money makers for the salesmen. Remember: You don't need life insurance unless you have dependents that can't live without your income...
2. Cash value has it's place, only if you really know what you're doing, need it to pay huge estate taxes, etc. Fir the average working stiff, it's always better TO BUY TERM, INVEST THE DIFFERANCE! HERE'S THE 5 "FUNNY BANKING RULES": 1. THE FIRST 2-5 YEARS, there is nothing in your "savings". What if you went to a bank, opened and account, and put $100/m. in for 3 years, and then needed to take some money out? You go to make a withdrawal, and they tell you, sorry, there's no money in your account. It all went to fees and commissions. 2. They say they guarantee you interest, but it's usually 3% and lower! 3. They say you can get a loan, but you have to BORROW your own money, and then pay them 8%!! for the privilge of using your own money. 4. If you need life insurance (because you have dependents who depend on your income for food, clothing and shelter) then buy life insurance. You get car insurance, with no savings attached. You get home insurance, with no savings attached. It should be the same with your life insurance. 5. Also, if you do die, your heirs get the "cash" account (minus the "surrender value") OR the death benefit--not both. So why bother? Whole life, or "cash value" costs about twice as much. And it's their money, not yours. So buy term, invest the difference!