LIFE INSURANCE - ...mostly does NOT pay out.?

LIFE INSURANCE - ...mostly does NOT pay out.?

Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 11:55 am #1

Almost 85% of [US life insurance] term policies fail to end with a death claim; nearly 88% of universal life policies ultimately do not terminate with a death benet claim. In fact, 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

A death benet is not paid on most policies. For term policies that oer coverage over a xed number of years, most are lapsed prior to the end of the term; a majority of permanent (e.g., whole life) policies are surrendered (i.e., lapsed and a cash value is paid) before death.

Insurers make substantial amounts of money on clients that lapse their policies and lose money on those that do not. Insurers, however, do not earn extra-ordinary prots. Rather, lapsing policyholders cross subsidize households who keep their coverage.


Real premiums decrease over time (i.e., policies are front loaded) rather than increasing with age in a manner more consistent with either actuarially fair pricing or optimal insurance in the presence of reclassication risk where new information about mortality risk is revealed.

While consumers correctly account for mortality risk when buying life insurance, they fail to suciently weight the importance of background risks. Since consumers do not anticipate the need to lapse, this front-loaded policy appears to be cheaper than a policy that is actuarially fair each period. The introduction of a secondary market undermines this cross-subsidy by oering lapsing households better terms relative to surrendering. (more)




rick_potvin@yahoo.com
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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 11:57 am #2

I can't afford to increase more payments down the road. The policy should have accumulated enough value by now to pay for itself. Instead, I was told payments will only increase in the future.

rick_potvin@yahoo.com
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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 11:58 am #3

Almost 85% of [US life insurance] term policies fail to end with a death claim; nearly 88% of universal life policies ultimately do not terminate with a death benet claim. In fact, 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

A death benet is not paid on most policies. For term policies that oer coverage over a xed number of years, most are lapsed prior to the end of the term; a majority of permanent (e.g., whole life) policies are surrendered (i.e., lapsed and a cash value is paid) before death.

Insurers make substantial amounts of money on clients that lapse their policies and lose money on those that do not. Insurers, however, do not earn extra-ordinary prots. Rather, lapsing policyholders cross subsidize households who keep their coverage.


Real premiums decrease over time (i.e., policies are front loaded) rather than increasing with age in a manner more consistent with either actuarially fair pricing or optimal insurance in the presence of reclassication risk where new information about mortality risk is revealed.

While consumers correctly account for mortality risk when buying life insurance, they fail to suciently weight the importance of background risks. Since consumers do not anticipate the need to lapse, this front-loaded policy appears to be cheaper than a policy that is actuarially fair each period. The introduction of a secondary market undermines this cross-subsidy by oering lapsing households better terms relative to surrendering. (more)




rick_potvin@yahoo.com
...for a policy that should be paid off at some point. I was told it'll never be paid off.

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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 11:59 am #4

Almost 85% of [US life insurance] term policies fail to end with a death claim; nearly 88% of universal life policies ultimately do not terminate with a death benet claim. In fact, 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

A death benet is not paid on most policies. For term policies that oer coverage over a xed number of years, most are lapsed prior to the end of the term; a majority of permanent (e.g., whole life) policies are surrendered (i.e., lapsed and a cash value is paid) before death.

Insurers make substantial amounts of money on clients that lapse their policies and lose money on those that do not. Insurers, however, do not earn extra-ordinary prots. Rather, lapsing policyholders cross subsidize households who keep their coverage.


Real premiums decrease over time (i.e., policies are front loaded) rather than increasing with age in a manner more consistent with either actuarially fair pricing or optimal insurance in the presence of reclassication risk where new information about mortality risk is revealed.

While consumers correctly account for mortality risk when buying life insurance, they fail to suciently weight the importance of background risks. Since consumers do not anticipate the need to lapse, this front-loaded policy appears to be cheaper than a policy that is actuarially fair each period. The introduction of a secondary market undermines this cross-subsidy by oering lapsing households better terms relative to surrendering. (more)




rick_potvin@yahoo.com
It never ends.

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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 12:01 pm #5

Almost 85% of [US life insurance] term policies fail to end with a death claim; nearly 88% of universal life policies ultimately do not terminate with a death benet claim. In fact, 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

A death benet is not paid on most policies. For term policies that oer coverage over a xed number of years, most are lapsed prior to the end of the term; a majority of permanent (e.g., whole life) policies are surrendered (i.e., lapsed and a cash value is paid) before death.

Insurers make substantial amounts of money on clients that lapse their policies and lose money on those that do not. Insurers, however, do not earn extra-ordinary prots. Rather, lapsing policyholders cross subsidize households who keep their coverage.


Real premiums decrease over time (i.e., policies are front loaded) rather than increasing with age in a manner more consistent with either actuarially fair pricing or optimal insurance in the presence of reclassication risk where new information about mortality risk is revealed.

While consumers correctly account for mortality risk when buying life insurance, they fail to suciently weight the importance of background risks. Since consumers do not anticipate the need to lapse, this front-loaded policy appears to be cheaper than a policy that is actuarially fair each period. The introduction of a secondary market undermines this cross-subsidy by oering lapsing households better terms relative to surrendering. (more)




rick_potvin@yahoo.com
Wealthless members like me end up DISPROPORTIONALY funding cryonics while wealthy cryonicists-- mostly Jews (who are neandertals)... point their bequest into perpetual trusts never to be seen by cryonics. Cryonics turns out to be nothing but a front of some sort. It didn't have to be-- but that's what happened to it.

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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 12:05 pm #6

Almost 85% of [US life insurance] term policies fail to end with a death claim; nearly 88% of universal life policies ultimately do not terminate with a death benet claim. In fact, 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

A death benet is not paid on most policies. For term policies that oer coverage over a xed number of years, most are lapsed prior to the end of the term; a majority of permanent (e.g., whole life) policies are surrendered (i.e., lapsed and a cash value is paid) before death.

Insurers make substantial amounts of money on clients that lapse their policies and lose money on those that do not. Insurers, however, do not earn extra-ordinary prots. Rather, lapsing policyholders cross subsidize households who keep their coverage.


Real premiums decrease over time (i.e., policies are front loaded) rather than increasing with age in a manner more consistent with either actuarially fair pricing or optimal insurance in the presence of reclassication risk where new information about mortality risk is revealed.

While consumers correctly account for mortality risk when buying life insurance, they fail to suciently weight the importance of background risks. Since consumers do not anticipate the need to lapse, this front-loaded policy appears to be cheaper than a policy that is actuarially fair each period. The introduction of a secondary market undermines this cross-subsidy by oering lapsing households better terms relative to surrendering. (more)




rick_potvin@yahoo.com
...because it turns out life insurance is bogus... especially the policies recommended.

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4. Whole life/universal life. Life insurance is a tool, not an investment. With whole life/universal life insurance, you will pay a higher premium with the promise that the company will take those extra dollars and invest them for you. The problem is that this type of insurance is very expensive. The investments dont grow because the expenses eat up your interesthttp://money.usnews.com/money/blogs/my- ... -never-buy

n 29 years as a financial planner, Ive yet to see whole life or universal life pay off for any client. Often, people have little to show for such policies other than the money they paid in. Whole life and universal life policies are the reasons why life insurance companies can afford big buildings and Super Bowl ads. The only time these policies make sense if you have an estate-tax problem but this is a subject beyond the scope of this post.

Life insurance is a very important tool. When you use it for its intended purpose, its great. That means you should look to term life to cover your family protection needs. Ignore the slick sales gimmicks of guaranteed life, life insurance or children, travel and accident insurance, and whole life/universal lifehttp://money.usnews.com/money/blogs/my- ... -never-buy

rick_potvin@yahoo.com
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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 12:07 pm #7

Almost 85% of [US life insurance] term policies fail to end with a death claim; nearly 88% of universal life policies ultimately do not terminate with a death benet claim. In fact, 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

A death benet is not paid on most policies. For term policies that oer coverage over a xed number of years, most are lapsed prior to the end of the term; a majority of permanent (e.g., whole life) policies are surrendered (i.e., lapsed and a cash value is paid) before death.

Insurers make substantial amounts of money on clients that lapse their policies and lose money on those that do not. Insurers, however, do not earn extra-ordinary prots. Rather, lapsing policyholders cross subsidize households who keep their coverage.


Real premiums decrease over time (i.e., policies are front loaded) rather than increasing with age in a manner more consistent with either actuarially fair pricing or optimal insurance in the presence of reclassication risk where new information about mortality risk is revealed.

While consumers correctly account for mortality risk when buying life insurance, they fail to suciently weight the importance of background risks. Since consumers do not anticipate the need to lapse, this front-loaded policy appears to be cheaper than a policy that is actuarially fair each period. The introduction of a secondary market undermines this cross-subsidy by oering lapsing households better terms relative to surrendering. (more)




rick_potvin@yahoo.com
How does that even make sense? It's basically one thing... and one thing alone-- THEFT... just like the Alcor membership dues when you interepret those dues as accumulations from members who Alcor knows will just be CHURNED through... to be replaced by newer younger members-- a topic unperson covered in New Cryonet, now locked to the public who can no longer read those posts.

rick_potvin@yahoo.com
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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 12:14 pm #8

Almost 85% of [US life insurance] term policies fail to end with a death claim; nearly 88% of universal life policies ultimately do not terminate with a death benet claim. In fact, 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

A death benet is not paid on most policies. For term policies that oer coverage over a xed number of years, most are lapsed prior to the end of the term; a majority of permanent (e.g., whole life) policies are surrendered (i.e., lapsed and a cash value is paid) before death.

Insurers make substantial amounts of money on clients that lapse their policies and lose money on those that do not. Insurers, however, do not earn extra-ordinary prots. Rather, lapsing policyholders cross subsidize households who keep their coverage.


Real premiums decrease over time (i.e., policies are front loaded) rather than increasing with age in a manner more consistent with either actuarially fair pricing or optimal insurance in the presence of reclassication risk where new information about mortality risk is revealed.

While consumers correctly account for mortality risk when buying life insurance, they fail to suciently weight the importance of background risks. Since consumers do not anticipate the need to lapse, this front-loaded policy appears to be cheaper than a policy that is actuarially fair each period. The introduction of a secondary market undermines this cross-subsidy by oering lapsing households better terms relative to surrendering. (more)




rick_potvin@yahoo.com
see that forum but beware Wakfer is a Liberterian so has no problem with perp trusts.

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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 12:15 pm #9

How does that even make sense? It's basically one thing... and one thing alone-- THEFT... just like the Alcor membership dues when you interepret those dues as accumulations from members who Alcor knows will just be CHURNED through... to be replaced by newer younger members-- a topic unperson covered in New Cryonet, now locked to the public who can no longer read those posts.

rick_potvin@yahoo.com
?

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Joined: January 1st, 1970, 12:00 am

April 29th, 2013, 12:16 pm #10

How does that even make sense? It's basically one thing... and one thing alone-- THEFT... just like the Alcor membership dues when you interepret those dues as accumulations from members who Alcor knows will just be CHURNED through... to be replaced by newer younger members-- a topic unperson covered in New Cryonet, now locked to the public who can no longer read those posts.

rick_potvin@yahoo.com
David Sharpe of Los Angeles is forking out $11,240 a year in premiums for term life insurance, but he isn't sweating the payments. He's counting on getting all of them back after the policy expires in 30 years, assuming he's still alive--a total of $337,200 tax free. At 34, the personal agent and manager says, "It is my intention to live well beyond the 30 years that my insurance covers.http://www.financialwellbeing.org/returnofpremium.html

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