Life Insurance

[lowryder99]

Originally posted by yellowsnow


So you're out $4500 after 11 years.

if you had a 20 year term policy, after 11 years, that would've cost you about $3300 like someone else mentioned. So you've paid an extra $1200 over 11 years for your policy.

I remember someone tried to sell me on this a few years ago, and there may be some tax benefits for having a whole life policy? It looked like just another way for insurance companies to make more profits, so I opted for a 20 year term policy at the end.

But at the end of his 20 year term policy if he never dies he's left with what?

Nothing...

The extra $1200 gave him a permanent policy with a cash value if need be.

[sputnik]

Originally posted by lowryder99
But at the end of his 20 year term policy if he never dies he's left with what?

About $80,000 in a shoebox in the basement.

Or if you are smart, a decent investment portfolio worth much more.

Originally posted by lowryder99
The extra $1200 gave him a permanent policy with a cash value if need be.

All he is getting back is some principle that is potentially worth less than what was invested due to inflation eating away at it.

Still better off with a term policy and a shoebox of money in the basement.

You getting math lessons from Mar?

[sputnik]

Originally posted by lowryder99
Everyone is entitled to their opinion

It is not an opinion. It's basic math.

The problem is that the salesperson will give you all kinds of doom and gloom scenarios and will NEVER show you how the numbers work against a term policy.

Feel free to show me how a whole-life policy is financially better than a term policy and the difference invested against a indexed TSX or S&P ETF over 20 years.

[lowryder99]

Originally posted by sputnik


It is not an opinion. It's basic math.

The problem is that the salesperson will give you all kinds of doom and gloom scenarios and will NEVER show you how the numbers work against a term policy.

Feel free to show me how a whole-life policy is financially better than a term policy and the difference invested against a indexed TSX or S&P ETF over 20 years.

80k in the basement? What about the 500k plus death benefit the contract owner now has? You just want to skip over that? Show me a Canadian (not US) whole life policy where the principle ended up being less than what was invested at the end of the term. Are you just reading the poor results based out of poorly funded and managed US based insurers? You're also acting like no one has ever lost money in the TSX before.

Hell, all you have to do is call any (I will use Canada life for example) and ask to get their performance charts that show projections vs actual earnings AND how they performed against indexed investments. Can't really glorify real numbers.

Like I said to the OP, UL or whole life policies are not for everyone, in most cases term satisfies your need for insurance just fine. Talk to a professional and get real numbers (Canadalife WILL show 20 year growth rates/analysis on ALL accounts...not just "glorified" numbers, real life results. There is a reason almost every wealthy business owner uses these policies for corporate asset efficiency, these policies obviously exist for a reason. If you don't understand taxation and sheltered growth then I suppose everything just seems like a sham at the end of the day

Best of luck to the OP, my advice is find a good agent that you feel comfortable with and who will answer ALL your questions and understands your needs. Not every agent is a "Slicked hair" salesmen, most importantly make sure you understand 100% what you bought and what you are covered for.

[max_boost]

Missed the forced savings part lol

That's assuming your average person will have saved my $330/month premium and invested it. Yes, considering how majority of the population live pay cheque to pay cheque. Yes show me your $40k or 60k 80K

Or have such stellar portfolios like the stock investment thread. OH wait, that portfolio is just for fun.

It's alright guys, I don't feel like I am being scammed nor do I feel like I am wasting money. It is what it is.

When I go and I have no one to give it to, I'll make a donation to SAIT where I got my business diploma.

[max_boost]

So in my case. this is the math for my $500k whole life with statefarm. Started Mar 2005

$330/month X 11 years = 43560 paid premiums
cash out value = $39k

current death benefit $507k lol

Good luck OP

[sputnik]

The other question of course is... why does a single guy with no kids have a life insurance policy?

[max_boost]

Why not. I'm max_boost. I do all kinds of random/stupid shit.

[vkesava1]

Originally posted by max_boost
So in my case. this is the math for my $500k whole life with statefarm. Started Mar 2005

$330/month X 11 years = 43560 paid premiums
cash out value = $39k

current death benefit $507k lol

Good luck OP

Just a quick question, you have insurance for 500K, you paying premiums every month. the money goes to beneficiary after you.

but what is that cash out value ? can you take your money out what you paid for your premiums if you decide to cancel the policy ?

[Kloubek]

I'm with Ivari (Just changed their name/company from the previously known Transamerica Life). I have just a standard life insurance policy to supplement the one from my work. For me, it was to ensure my family was taken care of should something happen to me. (I honestly don't know why anybody would bother if they didn't have someone they must leave money to)

As I used to smoke not that long ago, they have so far refused to give me a non-smoker rate. As such, I don't have quite the policy I want because I'm not willing to pay the high premiums.

My wife went with their product where you can cash it out as well... which is what I ultimately want to get on when they will let me. I don't have the numbers, but it really seemed to make sense. Somehow it works out that your premiums don't change through the years, and you can take the money out if you decided to leave the program. But after a certain age the amount they would return to you will reduce every year until there is nothing left.

I guess it makes some element of sense. They figure your chances of death are slim to start, so you can basically take out what you put into it if you so choose. As your chances of death increases, they money you can take out is reduced since the company has to start paying out for others who have died at an earlier than expected age. As you age further, more people die, and less is available to be paid out if the policy holder chooses.

In the end, I guess it doesn't really make a difference which route you take. You end up being dead, and your beneficiaries get paid out. But with this kind of insurance, you at least have an option of leaving the program and getting most of your money back. Useful if you end up with an amazing policy from your new employer, your loved ones die before you, etc.

[max_boost]

Originally posted by vkesava1



Just a quick question, you have insurance for 500K, you paying premiums every month. the money goes to beneficiary after you.

but what is that cash out value ? can you take your money out what you paid for your premiums if you decide to cancel the policy ?

Basically if I decide to cancel my policy today I get $39k back. So seeing how I paid 43.5k into it, effectively I paid 4500 for this policy for the 11 years coverage.

In 4 years, 2019, my cash value will be about $55k which = my total premiums paid up to that point so if I cash out in 2019. I basically got a 14 year term insurance policy FOR FREE! If that makes sense. The cash value amount goes up every year and it is guaranteed.

Again I'm not saying this is the best, I know fuk all about insurance products but this is what I have and I share with you the details.

Some say it's a waste of money, I've made far shittier decisions than this. Like that one time my bro told me he could double my money in five years. http://forums.beyond.ca/showthread.php?threadid=217911

[suntan]

As with many things you have to shop around like mad. The life insurance market is rather uncompetitive so premiums vary wildly.

[Cdog]

can anyone recommend some good life insurance broker?

[bigbadboss101]

Bump. When I was single I got universal insurance with my mom as beneficiary. She is a widow. Now I am married I am going to have my wife as the beneficiary. She stays at home with my 1.5 year old daughter. My insurance is UL. Now I am wondering I should get term life for my wife. Premium is under $30 a month for 20 years, $300k.

[Bytem3]

I also have a universal policy.

At first my gut told me it didn't make sense, 8 years later it seems to have grown pretty well, about 7.5% average return after management fees I believe

For years I got the investment report and didn't even look at it. Then last year I did and I actually let out a good laugh followed by a holy shit.

I used put in about $700 a month though. Now it's close to the minimum amount to cover the cost of insurance, about $200

In two years I plan on pulling it all out and doing something different with it. Don't need insurance anymore.