Life insurance is weird

Fedorgasm

Fedorgasm

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Life insurance is simply you saying "I bet I die soon" And your insurance company saying, "We'll take that bet"

And from my limited understanding of annuities, they are simply the opposite. Where you say, "I bet I'm going to live a long life"
And you insurance company saying "We bet you don't"

So it's a completely respectable industry built on the premise of gambling with your life.
 
The fact that suddenly in your 70's(and God forbid beyond), and on a fixed income you can be priced out after paying into the overall fund for decades is pretty fucked up.
 
If insurance thought you were likely to die they would not insure you.

It’s more like you’re saying “I probably won’t die but will invest in a fund for my loved ones in case I get very unlucky” and the insurance company says “yeah you probably won’t die so we like the odds here and will take a bet against your life because it probably won’t hit.”

You’re setting up a hedge bet which is just protection, technically you are placing a bet against you’re life but you’re a huge favorite in the books.
 
Fedorgasm said:
So it's a completely respectable industry built on the premise of gambling with your life.
Click to expand...
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Fedorgasm said:
Life insurance is simply you saying "I bet I die soon" And your insurance company saying, "We'll take that bet"

And from my limited understanding of annuities, they are simply the opposite. Where you say, "I bet I'm going to live a long life"
And you insurance company saying "We bet you don't"

So it's a completely respectable industry built on the premise of gambling with your life.
Click to expand...

I don't think it's a bet on either you will die or not. It's a matter of probability.

Most people who buy life insurance don't have the mindset that "I bet I die soon" but more in the "unlikely event I suddenly die, my loved ones will not be completely screwed financially" mindset.
 
Nameless Ghoul said:
The fact that suddenly in your 70's(and God forbid beyond), and on a fixed income you can be priced out after paying into the overall fund for decades is pretty fucked up.
Click to expand...
Life insurance is about insuring spouse/kids against the financial shock of the unexpected early death of the breadwinner. It's not supposed to be a death jackpot for people dying of old age
Flower2dPeople said:
Got a life insurance so I don't have to burden my kids when I die. It also earns interest which I could withdraw or just invest into other shit they offer. And this is why I workout 2x a week and ride 140kms a week.
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Good thinking about them and like I said, good to insure them against the possibility of unexpected death. But remember not to try and use it as an investment vehicle just for passing down inheritance money - stocks will appreciate in value for your kids way faster (but they don't insure against shock equally)
 
It's not really for you though. It's more of 'if I don't meet my lifetime earning potential' my loved ones are taken care of. Although you need to structure it so it can turn into a permanent policy once you surpassed your term. Then it's my loved ones get this tax free payout
 
gentel said:
Life insurance is about insuring spouse/kids against the financial shock of the unexpected early death of the breadwinner. It's not supposed to be a death jackpot for people dying of old age

Good thinking about them and like I said, good to insure them against the possibility of unexpected death. But remember not to try and use it as an investment vehicle just for passing down inheritance money - stocks will appreciate in value for your kids way faster (but they don't insure against shock equally)
Click to expand...
I don't really understand some of this stuff(lol), but basically I took a 10 year payment plan. They send quarterly reports and I already earned about the equivalent of 1.5 years worth of payments. I just look at it like a bonus. If they fuct it up, eh. As long as my loved ones get the full package when I die.
 
Insurance in general is a weird concept. It is negative ev and you are essentially paying vig on your life. You are betting that you will get into an accident and the money you get paid out by the insurance company will be more than money you pay them. You are essentially paying someone an unlucky tax.
 
Flower2dPeople said:
Got a life insurance so I don't have to burden my kids when I die. It also earns interest which I could withdraw or just invest into other shit they offer. And this is why I workout 2x a week and ride 140kms a week.
Click to expand...
What type of policy to you have? Whole, Universal?
 
Fedorgasm said:
Life insurance is simply you saying "I bet I die soon" And your insurance company saying, "We'll take that bet"

And from my limited understanding of annuities, they are simply the opposite. Where you say, "I bet I'm going to live a long life"
And you insurance company saying "We bet you don't"

So it's a completely respectable industry built on the premise of gambling with your life.
Click to expand...
There is also the part where the company you work for takes out a life insurance policy on you when they think the timing is right.
 
Can you really call yourself an adventurer if you don't gamble with your life? ;)

Anyway, my dad was really irresponsible when I was growing up, so I was happy knowing he had a life insurance policy.
 
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