Discontinuing Disability and Life Insurance

[brewer12345]

OK, everyone who has had no major changes in their financial plans or lifestyle in 30 years, raise your hands...

 

[dgoldenz]

OK, everyone who has had no major changes in their financial plans or lifestyle in 30 years, raise your hands...

Funny, that's the exact reason most people need life insurance...things change that are completely unexpected (like divorce as mentioned earlier). Buy term and invest the difference....unless your ex-wife takes half!

Despite that, you are still 100% guaranteed to die some day and someone will have to pay for your funeral.

 

[brewer12345]

Funny, that's the exact reason most people need life insurance...things change that are completely unexpected (like divorce as mentioned earlier). Buy term and invest the difference....unless your ex-wife takes half!

Despite that, you are still 100% guaranteed to die some day and someone will have to pay for your funeral.

Cute, but I was intimating that these are lapse supported products. So if you hold the policy for 30 years you do great, but the 95% of those who surrender early do a lot worse to make up the difference and provide a profit to the insurer (and commissions for the agent).

 

[dgoldenz]

Cute, but I was intimating that these are lapse supported products. So if you hold the policy for 30 years you do great, but the 95% of those who surrender early do a lot worse to make up the difference and provide a profit to the insurer (and commissions for the agent).

A guaranteed UL product is guaranteed to have a fixed premium for life. There is very minimal cash value to walk away with if it's ever surrendered (if any). So the only way you are going to lapse that product is to decide you no longer want to keep it or if you try taking loans against the policy, which is not what GUL is designed for.

People don't buy life insurance because they need it, they buy it because they want it. If someone else is going to pay for your expenses and you see no value in the insurance, that's fine, don't buy it. Some of our clients who have an estate tax problem don't care because they feel that the kids will get what they get and if they have to pay a tax, it's the kids' problem. Others want to pass everything to the kids and see the value in buying a policy to pay the estate tax. You can't force people to buy life insurance (unless you're a divorce lawyer, that is). You can only present the options and let them make that choice. I don't cold call people and tell them why they need insurance - the people buying something from us either call or e-mail because they're interested and want to buy it.

 

[brewer12345]

A guaranteed UL product is guaranteed to have a fixed premium for life. There is very minimal cash value to walk away with if it's ever surrendered (if any). So the only way you are going to lapse that product is to decide you no longer want to keep it or if you try taking loans against the policy, which is not what GUL is designed for.

People don't buy life insurance because they need it, they buy it because they want it. If someone else is going to pay for your expenses and you see no value in the insurance, that's fine, don't buy it. Some of our clients who have an estate tax problem don't care because they feel that the kids will get what they get and if they have to pay a tax, it's the kids' problem. Others want to pass everything to the kids and see the value in buying a policy to pay the estate tax. You can't force people to buy life insurance (unless you're a divorce lawyer, that is). You can only present the options and let them make that choice. I don't cold call people and tell them why they need insurance - the people buying something from us either call or e-mail because they're interested and want to buy it.

It always easier to shear sheep that are docile.

 

[Sarah in SC]

I'm with Brewer (and Nords). Cheaper to put away that money for the funeral in something not dogged with fees and hidden charges. Just have some cash set aside for the funeral and drop the LI.

 

[Nords]

Despite that, you are still 100% guaranteed to die some day and someone will have to pay for your funeral.

Just have some cash set aside for the funeral and drop the LI.

Like Sarah says. And my death expenses will be split between the U.S. taxpayers & UH's medical school.

I'm going to bow out of this thread now because I feel that I'm just feeding the troll...