Life insurance is weird

[Belaya Smert]

When you realize it’s actually Death insurance that’s when the light goes on

 

[LHWBelt]

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.

Not really. By then your kids should be fine without you and you don't really need it anymore. Also the risk of you dying is huge for the insurance company so of course it's going to cost alot. I'm going to pay mine til my kids/wife are good then I'll cancel it. Or I'll die before that and they'll get 600k to help themselves get by. Either way I'm good.

 

[crabmeat]

I didn't get into my mother's business. After she passed, I discovered she was paying $100 a month for years, with a decreased term. It paid out $1800.

 

[Fedorgasm]

Life Insurance is the first step to getting murdered by your wifes boyfriend.

Agreed. So buy insurance but just keep it a secret. If the wife ever finds out, cancel it and show her the proof.

Then after a while you can secretly buy another policy so she'll be taken care of in the off chance that she doesn't become a cheating murderer.

 

[VulcanNervPinch]

Life insurance is the biggest scam ever

That's dumb.

Not everyone needs or can afford it, but for those who can and do, it's an outstanding product.

My mother's father died young. Without the insurance, the mother and 2 kids would have been out on the street.

 

[Rhood]

That's dumb.

Not everyone needs or can afford it, but for those who can and do, it's an outstanding product.

My mother's father died young. Without the insurance, the mother and 2 kids would have been out on the street.

If your grandfather died without insurance that means you would be on the streets?
WHAT?!?!?!?
Is everyone in your family depending on your grandfather for support?

Life insurance is still a scam.
Once someone dies, they have to call detectives and every investigative bureau agency to make sure you aren't bullshitting them, and then they do everything they can to delay payments. I've heard of families waiting up to 5 years after death before receiving first payment. Can you imagine living 5 years on the streets?

Read it here first Ladies & Gentlemen:
Life Insurance is the biggest scam ever!! Do not pay into this system.

 

[Oblivian]

Life insurance is literally how every insurance should be used by a consumer - to prevent financial disaster. Insurance does not serve any purpose beyond that, yet people think they are "winning" using it to cover items that are a few thousand. I have life insurance so that my family wouldn't be in disaster once my income is lost. I have home insurance with a high deductible to cover financial disaster in the event of a fire, etc. Not to cover a shingle being removed by wind. Same with car insurance - it's to cover medical or from being sued. My medical is the same with a high deductible.

 

[chardog]

If your grandfather died that means you would be on the streets?
WHAT?!?!?!?
Is everyone in your family depending on your grandfather for support?

Life insurance is still a scam.
Once someone dies, they have to call detectives and every investigative bureau agency to make sure you aren't bullshitting them, and then they do everything they can to delay payments. I've heard of families waiting up to 5 years after death before receiving first payment.

Read it here first Ladies & Gentlemen:
Life Insurance is the biggest scam ever!! Do not pay into this system.

not sure if it's the BIGGEST scam, but essentially, all insurances are scam systems that you shouldnt participate in.

 

[Oblivian]

If your grandfather died without insurance that means you would be on the streets?
WHAT?!?!?!?
Is everyone in your family depending on your grandfather for support?

Life insurance is still a scam.
Once someone dies, they have to call detectives and every investigative bureau agency to make sure you aren't bullshitting them, and then they do everything they can to delay payments. I've heard of families waiting up to 5 years after death before receiving first payment.

Read it here first Ladies & Gentlemen:
Life Insurance is the biggest scam ever!! Do not pay into this system.

This is total bullshit. I've seen loads of people paid out on life insurance.

 

[chardog]

Life insurance is literally how every insurance should be used by a consumer - to prevent financial disaster. Insurance does not serve any purpose beyond that, yet people think they are "winning" using it to cover items that are a few thousand. I have life insurance so that my family wouldn't be in disaster once my income is lost. I have home insurance with a high deductible to cover financial disaster in the event of a fire, etc. Not to cover a shingle being removed by wind. Same with car insurance - it's to cover medical or from being sued. My medical is the same with a high deductible.

ditto, I have a similar setup, minimal coverage all around to comply with the law. The health thing can be advantageous if you max out the HSA's and arent taxed on them. Maxed out fsa's, 401k's, anything to avoid taxes

 

[boingyman]

Term life insurance is cheap, especially at a young age. How much you should get depends on a lot of factors, but as you add more important people in your life (wife, kids) the amount should go up. Even more so if you're the bread winner. I would say anywhere between 2-10x household income depending on your entire financial picture and scenario.

 

[jitzmonkey]

It's a fairly common financial strategy to cover oneself and their children (for their children's children, etc... every time a new generation is born) in order to assist the in the creation/maintenance of generational wealth.

Obviously there's also the "my wife and kids can stay in their home, good school district, etc..." angle which is more commonplace.

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.

Spoken like a true Finance Bro.

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.

Common for key employees (especially in start ups) since recruiting replacements with similar talents can be quite expensive.

 

[Romulas]

Life insurance is the biggest scam ever

A term policy in necessary if younhave children in the case of your death.

Other than term policies the more complex investment vehicle types aren't necessary unless you're in a position to utilize them as vehicle to legally offset tax burdens.

 

[My name is]

I was literally having this talk with my wife last week

 

[blaseblase]

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.

Same premise as every other kind of insurance. For the customer it's a backup plan if the worst happens, for the insurance company it's a gamble.

 

[VulcanNervPinch]

If your grandfather died without insurance that means you would be on the streets?
WHAT?!?!?!?
Is everyone in your family depending on your grandfather for support?

Life insurance is still a scam.
Once someone dies, they have to call detectives and every investigative bureau agency to make sure you aren't bullshitting them, and then they do everything they can to delay payments. I've heard of families waiting up to 5 years after death before receiving first payment. Can you imagine living 5 years on the streets?

This is a fountain of hilarity.

What - you mean they don't actually just hand 6 or 7 figures out to anyone who calls them and says "Yeah, um, my husband died. Gimme money!" - they actually look into it?

Detectives and investigative bureaus?? What kind of deaths are you talking about? People who vanish in the night and their spouse wants them declared dead? Normal deaths with bodies and death certificates and funerals don't take that much time and effort.

How Long It Takes to Get a Life Insurance Payout

Getting a payout from a life insurance policy takes two weeks to two months. Find out when you can expect payment of your life insurance death benefit.

www.moneygeek.com

The timeline for receiving a life insurance payout varies, with some beneficiaries receiving funds in as little as 14 days and others waiting up to 60 days.

"You've heard of"
This is what happens to people who live their lives based on exceptions to the rule & anecdotes of highly variable reliability instead of data, experts, and reliable sources.

Read it here first Ladies & Gentlemen:
Life Insurance is the biggest scam ever!! Do not pay into this system.

Do not get involved with life insurance if:
You don't have anyone financially reliant on you
You're very poor or very wealthy
You're an incredibly paranoid conspiracy nut

For other people, life insurance is frequently a fabulous resource.

 

[boingyman]

If your grandfather died without insurance that means you would be on the streets?
WHAT?!?!?!?
Is everyone in your family depending on your grandfather for support?

Life insurance is still a scam.
Once someone dies, they have to call detectives and every investigative bureau agency to make sure you aren't bullshitting them, and then they do everything they can to delay payments. I've heard of families waiting up to 5 years after death before receiving first payment. Can you imagine living 5 years on the streets?

Read it here first Ladies & Gentlemen:
Life Insurance is the biggest scam ever!! Do not pay into this system.

 

[Jack Reacheround]

It's paying for piece of mind.

If I get hit by a bus today atleast my wife won't have to worry about money any time soon.

This is how I look at it. I just don’t want to have to worry about what happens to my wife if I die. I know she’ll at least get enough money to be able to take some time off, sell out house, buy a smaller one, and be ok.

 

[ThaiSexPills]

I have life insurance right now for 500k should I croak which, if you think about it is kind of stupid because I don’t have kids and I’m relatively wealthy. It’s something my parents took out when I was a kid that I kept going. I heard of some people borrowing against it or taking a payout early and have always meant to look into it but I never did.

I don’t think it’s a bad idea for parents to get it though. My friends’ father passed and her mother got 100k plus the mortgage was insured so he got out of his truck payment, mortgage and that 100k paid off his daughters student loan (small), helped with her first home and left a nest egg for her mother who is ~55. Seems like a good, cheap way to not leave your family with debt.

 

[Mark Hunts FIST]

Life insurance is something you pay for that you hope you don’t use for a long time.

It’s a security blanket for your family. If you’re single, no children, no wife. I wouldn’t waste my money.