1968mooney wrote:
Gdetrailer wrote:
boston blacky wrote:
Now I'm sorry I asked. Have a good day. BB
Sorry that you feel this way, just seems to be pretty odd when someone at age 70 or above is wanting to buy life insurance. You should be well past the stage of needing it..
Yeah, not having a "life ring" may sound odd, but in reality if you have no debt, there is no need to pay for life insurance.
The idea of life insurance is to cover your spouse/family when you have outstanding loans/debt at the time of your death..
It should not be treated as a "savings account" or as a way to bolster your estate for your loved ones at the time of your death.. Just costs too much money to do that over time..
Yeah, folks do, but in reality, the insurance co WILL make more money than what they will ever pay out..
So you think the Co. will always come out ahead. Do you not realize people die from events other than old age. I sold Life Ins. for 21 yrs. We sold a policy once to a man. Premium was $15.00 for a $100,000 policy. He was killed 3 weeks after purchasing the policy so our Co. paid the $100,000. The reason for such high premiums at 70 yrs.old is the odds are aganist the Co. of making money.
:R
You have drank too much insurance koolaid..
Do you not realize that any insurance company like any other "company" MUST make a profit?
They are not a "charity", they do not just hand out money just to be nice, they do not operate in the red. They are there to MAKE money not lose money.
When you were an insurance salesman, did YOU work for nothing or better yet, pay out of YOUR pocket to the policy holder?
I doubt it, you didn't work for free.
No, you DEMANDED to get paid for selling that insurance.
The example you gave is not an ordinary event and insurance companies have already take into account that they WILL "payout" early on SOME policies.
Insurance companies are BETTING that they WILL take in MORE than they payout, if they don't, they WILL go out of business.
So, how does this work?
Simple, they take in money through MANY policies sold (this SPREADS OUT THE RISK over hundreds of thousands of policies), they pay the agent a percentage, they pay the bills for offices, office workers, advertising and the CEO/board members. The leftover money is then INVESTED in many other financial institutions like stocks, bonds, money market, real estate and so on.. Pretty much anywhere they think that can make a profit..
You as an "agent, got peanuts for selling a policy and the CEO/board members make a killing with huge salaries and benefits in the process and yet there is money leftover to payout claims and still show a profit..
Per
HEREand I quote
"The insurance industry's net margin in 2017 ranged between 3 and 10.5%. Life insurance had the widest range between quarters, from 3% to 9.6%; property and casualty insurance were at 3% to 8%; and health insurance had the narrowest range of 4% to 5.25%. The net margin for insurance brokerages in 2017 was higher than that of the insurance industry overall, at 9.27% to 10.5%."So, in 2017 Life Insurance companies net profit margins ranged from 3%-9.6% which while it sounds like small potatoes to you it represents BILLIONS of dollars in profits ABOVE the money they took in from selling policies!!
To really put this into perspective, the average non insurance "company" typically operates on 2%-3% net profit margins, you might find some really outstanding companies with perhaps 5% net profit margins but those are few and far between..
Pretty darn good money those insurance companies are making.
Pretty much lumps them into the same category as a Casino, Casinos are betting that they will take in more money than what they payout..
