It is very fustrating when you have to pay a high insurance premium because of your age. If you're younger than most you pay a much lower premium, if you're older, you pay a much higher premium. That's ridiculous!
Posted: 05 Nov 2008 11:41 Post Subject:
Are you referring to call forms of insurance? Younger people pay higher auto insurance then older people.
Insurance rates are mainly based on risk. The higher the risk, the higher the premium. If you are referring to health insurance, older people have more medical expenses. Is it unthinkable that insurance companies then charge those people, of higher risk, higher premiums? You can always choose to self insure yourself if the premiums are higher then your insurance expenses. No one is forcing you to have health insurance. If you don't think you can go without it, I'll ask why not.
Posted: 06 Nov 2008 05:04 Post Subject:
As for life insurance, that's kind of a no-brainer.
You see, a long time ago in a land far, far away, some idiot came up with the ludicrous assumption that, as we get older, we get closer to death. I realize that most people would agree with my challenge of this idea, but for some reason, the life insurance companies are going to stand fast in their belief that this assumption is indeed fact. For this reason, life insurance premiums increase every year that you continue to breath oxygen.
If you need any additional help with this or have any questions about vanishing premiums and such, feel free to message me.
Posted: 06 Nov 2008 05:11 Post Subject:
Life insurance is something I never understood. I'm not saying it's a tough concept... I just never took the time to really understand it. Of course, I'm single and have no dependents. When I die I really just want someone to push me off the side of a boat or dig a hole and put me in it.
Posted: 06 Nov 2008 06:35 Post Subject:
Hey Cope, why are you still awake?
Life insurance is much easier to understand than most people think. Like the basics of something like internal combustion, life insurance is based on just a few basic concepts that never change - ever. It's the ways in which these basic concepts are often changed and/or distorted that make the policies confusing.
In my seminars, I first break the life-insurance theory into basics and present them in laymen's terms. Once you have even a basic grasp of these basics, you'll be amazed at how simple the products actually are. And once you reach this point, understanding how the policies are mis-sold is a breeze.
Mark my words: Once the insurance consumer is educated, a large percentage of agents will be looking for new lines of work.
Posted: 06 Nov 2008 09:20 Post Subject:
The risks regulate the insurance premium. Higher the risks, higher will be your premium.
Life insurance premium depends upon the rate of mortality. Therefore, higher you age, higher will be premium.
However, the opposite happens with the auto insurance. To the insurers the young drivers are at the higher risk of wrecking their cars in an accident than an experienced driver of older age. Therefore, the young drivers are likely to pay more for their policies than seasoned drivers.
The insurance rates are not arbitrarily set, but these take the actuaries and the underwriters loads of hard work to determine the rate for you. Hope that clarifies.
Posted: 06 Nov 2008 11:55 Post Subject:
I think the OP just about HAS to be talking about life or health premiums...and although it 'sucks' it makes perfect sense really, older people get sick more, and die quicker...that's pretty much it...
Posted: 17 Nov 2013 03:40 Post Subject:
That's horrible that you were misled about the cash value and what life insurance main purpose is suppose to be. Well, you already know that cash value doesn't pay out to the beneficiary when the insured dies. Life insurance main purpose is to protect your income in case you die, not as a way to build savings.Therefore I own term insurance. To be more specific, I own 30 year term with $500,000 coverage. It used to be $150,000, then my financial obligations increased. It only cost me $60/month. If this was a whole life policy, I wouldn't be able to afford $500,000 coverage. It will cost me about $330/month. Right now, there are people dependent on my income, so I need lots of income protection. In case I die over the next 30 years, my family will be able to maintain the same life style for a long time. Not only that, the company I have life insurance with will show my family how to invest the death benefit that can generate monthly income for the family. It is as if I'm still bringing income to the family when I'm dead.At the same time I own term, I also contribute $100/month into my Roth IRA. If my portfolio continues to earn an average rate of return of 10% (currently its earning 11.1% in the past 5 years), in 30 years I can have approximately: $227,932. In 40 years, it can grow to: $637,678.Now I sell term insurance and investments to all my clients.
Posted: 18 Nov 2013 06:52 Post Subject:
You sell insurance for Primerica, don't you? I've been investigating life insurance fraud for 20 years and those Primerica guys are easy to spot. If not, sorry to bother you.