Life Insurance, Do i need it? What type of policies are good? Should i wait to get other things in life done?

[futuredreamer]

@famof6 Term isn’t actually almost pure profit. It is one of the products that have the lowest pay out rate. Meaning the company is keeping all those premiums because people either let the policy lapse, or outlive the policies. Term is absolutely a cash cow for insurance companies.

Time horizon on insurance is flipped. The shorter time horizon = more profitability because it’s less risk the carrier pays out. Long time horizon = more risk the carrier pays out.

 

[famof6]

@futuredreamer I’m sorry but you are very wrong - longer time horizons almost always equate to higher profits for insurance companies. At its simplest, longer liability durations equate to lower present values due to interest (and more time to invest the premiums…).

This is part of the reason why savings products (I.e., VAs) are so desirable for investment firms.

 

[21chicken]

@famof6 I'm more then happy to invenst the money else where. Do you have any recommendations?

 

[edward30]

@21chicken I have an insight on what you are asking. you dont need to die plus it has more benefits than you would ever expect. if you are still inquiring let me know.