Ya know, I have long since come to conclusion that death insurance isn't best option

Discussion in 'Green Room' started by Son Goku, Feb 8, 2006.

  1. Son Goku

    Son Goku No lover of dogma

    So here I am, watching the tele, and more commercials for "life insurance", which is more accurately called death insurance come on. Problem is of course, that logic is going to dictate, that as a profit making company, they're going to tend to make more money in premiums, then they'll tend to give back once people become recipients. If they hadn't, profit making, or non-profit, they wouldn't have money to pay people's salaries, pay the electric bills, and generally run their operation...

    What I find lame with these "everyone will have to think about the silver care plan" (as if it's inevitable, you have to buy their product :rofl), and a half dozen of these other commercials, is that if people simply sat that same money used to pay premiums aside, in even a standard savings account, which makes interest; then over the course of a lifetime, people would likely get more back then they get from death insurance...

    But, the other alternative isn't to leave people with unpaid funeral expenses, as they suggest; but is rather to set the money (that one would pay in premiums) in some form of account that makes interest. $5,000, $10,000, or $20,000 (as this one advert suggested) wouldn't be hard to save up over the course of an average person's lifetime... And barring early death (which they wouldn't want anyhow, for obvious reasons), once the principle in even a standard savings account gets high enough, the interest payments get lucrative. AKA, even with 3% APR on $20,000, one's talking (actually a bit more, due to interest being compounded far more often then once a year) then $20,000 * .03 = > $600 in interest payment...

    I think it's just another way for these companies to make more money, when people could save it themself, and a statement in a will, could indicate that's what that one account was set aside for...
  2. Vanquished

    Vanquished Mr. Bananagrabber Political User

    Absolutely agree!
    But you have to remember that this really is what these companies set out to do... Damn them :) anyways i agree when you pay your premiums they make money and chances are that you will end up living past the 85 year old cut off. once this happens then your screwed, you paid them 45 years worth of life insurance even at 1 dollar a day ($16,425) and they don't ever end up giving you anything. I'd have to say that really is a crappy deal. Also in my mind what the hell do i care, im dead, let my family pay for my funeral (cheap bastards) its the least they can do...
    - Jack