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9/22/2017 12:11:25 AM
Posted: 8/9/2005 11:14:28 AM EDT
Anyone still keeping yours up and why? Seemed like a good idea at the time I took out the policy. Since the slowdown in Inflation lately it doesn't look like it's worth it. Especially since the same amount of money would buy 100k of term. However, things could turn around again and start going back up. My Insurance agent suggested I cancel it but I figure the company might have some hiden agenda for seeking those out with the rider and convince them to cancel. Any thoughts? TIA.
Link Posted: 8/9/2005 11:19:43 AM EDT
The agenda may be that the agent is not paid very much commission on renewals as compared
to new sales.

Link Posted: 8/9/2005 11:55:27 AM EDT
Question #1: Are you still insurable? Probably so, but just make sure before getting rid of what you currently have.

Next, term is generally much less than some sort of whole life product. There are a few companies that really get into the whole thing about buying term and investing the difference in a real investment. As zealous as they may or may not be, they are correct that your investment money is much better off going into real investments (insurance is not considered an investment).

Term products are either annual-renewable (the price is reset..higher..each year) or a preset number of years (10, 20, 25, etc.). The longer term products are more money as the insurance company is covering an older person near the end...and older people are statistically more likely to have benefits paid on the policy. Companies will often have one price list for smoking, another for non-smoking, and a 3rd list called 'preferred' which generally means for somewhat skinny people...hehe.

And the agent will make a new commission of selling another policy.
Link Posted: 8/9/2005 1:21:31 PM EDT
Insurable? Yes, no health problems.

Commission on a new policy vs. renewal. DOH! I didn't think of that. We did talk about taking out a new one for roughly the same amount of money. At least that way you build some cash value.

Even still $240 for an additional $25,000 isn't that bad without any checks. Wonder if companies are still offering them?
Link Posted: 8/9/2005 1:33:27 PM EDT
for $240 a year you could probably get $200,000 of term. based on your age and health?

I used to sell insurance about 10 years ago..whole life is a rip off and any other life ,except term.

I have 200,000 on me and 50 on the wife and we pay 24.00 per month.

life insurance is for when you die BEFORE you make enough money to retire on, or pention, etc.

you'll find that the real rate of return on a whole life policy is somewhere in the neighborhood of about 1% after you've paid into it for 20-30 years.

you could do better in a cd! mutual funds used to be the hot ticket...not so much now days.

a little home work on your part (not an agent) could net you a lot more return of YOUR money in the long run.

insurance agents prey on the coustomers ignorance and lazyness about financial products.

it's your money, waste it anyway you want.
Link Posted: 8/10/2005 5:21:38 AM EDT
Good to know. Thanx for the tips Guys!
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