Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 16, 2005
- Messages
- 17,383
OK... I am going to vent...
I am going to give a real life example of WHY whole life insurance is a bad 'investment'.... my example has to be the worst that anybody has ever heard of... (I bet nobody will be able to find one worse than this)....
I have started to pay my mom's bills... she is 94 and starting to show signs of dementia... I get this bill in the mail for over $214 for life insurance... Now, I know she has two small insurance policies.... but she told me back in 1980 that 'they were paid up', so I did not recommend anything to her for them.... And this is the first I have heard of her paying anything... She does remember paying this over the years...
So, I call the insurance company and ask a bit about the policy... they cannot give me much as I am not with my mom... I ask them to mail the info to my mom... I got that letter earlier this week... here is the important info...
Policy started in 1956... yes... it is that old.... annual payments of over $214... death benefit of $10,000... cash value of about $8,800!!!!
YES... after paying 58 years... for a TOTAL PAID PREMIUMS of $12,000... she has a current cash balance of $8,800... Now, if it had been earning 4% (not unreasonable)... the cash value would be over $46,000.... if 6% over $100,000...
I asked them when it matures.... they said when she turns 100... SO, if she lives that long.... I can pay more than $1,200 to increase my cash value by $1,200...
Bottom line... they 'stole' between $40,000 and $90,000 from my mom!!!
I am going to give a real life example of WHY whole life insurance is a bad 'investment'.... my example has to be the worst that anybody has ever heard of... (I bet nobody will be able to find one worse than this)....
I have started to pay my mom's bills... she is 94 and starting to show signs of dementia... I get this bill in the mail for over $214 for life insurance... Now, I know she has two small insurance policies.... but she told me back in 1980 that 'they were paid up', so I did not recommend anything to her for them.... And this is the first I have heard of her paying anything... She does remember paying this over the years...
So, I call the insurance company and ask a bit about the policy... they cannot give me much as I am not with my mom... I ask them to mail the info to my mom... I got that letter earlier this week... here is the important info...
Policy started in 1956... yes... it is that old.... annual payments of over $214... death benefit of $10,000... cash value of about $8,800!!!!
YES... after paying 58 years... for a TOTAL PAID PREMIUMS of $12,000... she has a current cash balance of $8,800... Now, if it had been earning 4% (not unreasonable)... the cash value would be over $46,000.... if 6% over $100,000...
I asked them when it matures.... they said when she turns 100... SO, if she lives that long.... I can pay more than $1,200 to increase my cash value by $1,200...
Bottom line... they 'stole' between $40,000 and $90,000 from my mom!!!