Are you prepared?

**Jimbo** · 01-13-2009, 07:49 PM

I have a plan for all these eventualities: Move to the US and set myself up as a big car manufacturer.

James.

**Stuggi** · 01-13-2009, 09:50 PM

Luckily I live in Finland, where all health-care and most hospice-care is paid for by the state, unless you go to a private hospital.

**jockeys** · 01-13-2009, 10:13 PM

Originally Posted by Cornelius

the USA, the only country in the world without free health care as far as I am aware.

yeah, the free health care in Somalia is fantastic, I'm sure. Pretty sure it involves a warlord raping the women and killing the men.

I'm prepared for most things. Truck is insured against almost everything. Same for house. Same for healthcare, same for life, accidents, loss of employment, retirement, etc. I consider all those things living costs and have budgeted for them since graduating from college and becoming employed. The wife and I both carry enough life insurance to pay of each of our debts (school), cover funeral expenses and pay off the house. The wife and I are also both insured against any disability that might prevent us from being able to work.

Some of my friends think I'm wasting my money, but I think of it as cheap peace-of-mind.

I might add that all of that insurance, retirement, etc, etc is paid for from my pocket and is my choice. I am not relying on other people's taxes to cover me at all. I am wholly expecting Social(ist) Security and Medicare to collapse before I am anywhere near old enough to retire, so my plans don't include them.

**ChrisL** · 01-13-2009, 10:21 PM

Originally Posted by jockeys

The wife and I are also both insured against any disability that might prevent us from being able to work.

Good thinking. Very few people have the understanding or the forethought of disability insurance (I call it "paycheck insurance"). I don't know many people that can sustain a hit financially for six months, a year, two years by being disabled from an illness or injury, having no income and come out of it unscathed. With your protection in place, you don't have to worry about that.

Chris L

**thebigspendur** · 01-14-2009, 12:19 AM

Originally Posted by Chris L

I agree with you Tim about Whole Life being one good option for investment. I didn't go into that in my previous post because my biggest concern is for the family guys that have no life insurance. That's a critical situation that needs attention. It's hard enough to convince some guys to buy even term life if they don't have any let alone talk about how Whole Life can be insurance protection for the family AND an investment vehicle.

Another tip for guys thinking about term life: ask an agent in your state if they have a life company that offers a "return of premium" rider. What is it? Listen to how crazy but cool this is:....

Picture a 20 term life policy. You're paying premiums each year for 20 years. If you're still alive at the end of those 20 years.....the company that offers such a rider will literally write you a lump sum check of every single dollar you paid in for that insurance and give it back to you, returning every dollar of your premium. Sounds crazy but some companies offer it. They make money off the interest during those 20 years. The catch (if you'd consider this a catch) is that the premiums are a bit higher than a term life policy where the company keeps your money.

Chris L

Sorry, but I just can't agree about whole life as an investment vehicle. In the end if you take the money you put into whole life premiums over many many years and invest it in the market you will come out so far ahead it's not funny. The only one who reaps a fortune is the insurance agent who gets huge commissions on the whole life policy he sells.

**Quick Orange** · 01-14-2009, 02:11 AM

I think it depends on your company. It's amazing to me that everyone thinks that life policies are the exact same over 1400 different companies. Yeah, you're going to have those companies that aren't that great, then you're going to have the really great ones. There's a company that's guaranteeing 6% on policies this year- how're your investments doing?

Also, you're mistaken on commissions. A decent/good commission is usually made on the first year (depending again on who you're with), but after that it's a small fraction. Why shouldn't the agent make a little money off it though? Assuming the agent and company have done a proper job of educating you and walking you through the process, why shouldn't he make money off his time?

**syslight** · 01-14-2009, 04:08 AM

How have we gotten this far into an insurance thread without Monty Python weighing

**ChrisL** · 01-14-2009, 04:08 AM

Originally Posted by thebigspendur

Sorry, but I just can't agree about whole life as an investment vehicle. In the end if you take the money you put into whole life premiums over many many years and invest it in the market you will come out so far ahead it's not funny. The only one who reaps a fortune is the insurance agent who gets huge commissions on the whole life policy he sells.

I've only been in the business a bit over a decade and I've lost count at the number of times I've heard this. Seriously. I don't necessarily disagree with what you've said and I can only assume you invest or have invested at least in part in the market. HOWEVER, getting back to your argument I've heard a thousand and one times; there are many many many more people probably unlike you who DON'T invest in the market, who DON'T invest there money anywhere and they blurt out that kind of a remark.

For those who don't invest their money and aren't protecting their family SAYING they could do better in the market if they're even remotely thinking of putting any money anywhere while not protecting their family with life insurance but in the end doing nothing about it is very foolish and sad IMO. If someone has the money, the choice and the initiative to actually invest money, are there other or possibly even better alternatives to whole life policies? Sure. Heck, I'd tell people skip the market all together and buy real estate, but that's me. My point is whole life cash value accrual is better than not investing at all; most people in the U.S. don't invest anything.

Originally Posted by Quick Orange

Also, you're mistaken on commissions. A decent/good commission is usually made on the first year (depending again on who you're with), but after that it's a small fraction. Why shouldn't the agent make a little money off it though? Assuming the agent and company have done a proper job of educating you and walking you through the process, why shouldn't he make money off his time?

Agreed. Life commissions = 20-40% commission 1st year and about 1% renewal commissions thereafter.
Health Insurance commissions are so dismal that IMO it's worth selling only as a public service quite honestly. Usually 1.5% across the board.

Chris L

**Rajagra** · 01-14-2009, 08:58 PM

Originally Posted by syslight

How have we gotten this far into an insurance thread without Monty Python weighing

**thebigspendur** · 01-15-2009, 12:39 AM

I see no logic in saying well people don't invest in the stock market so they should invest in an inferior vehicle because something is better than nothing. Which is what you are saying.

My wifes uncle was an exec for a major life insurance company so I got a good education about policies and what agents made in commissions. And no I have no objection to someone making a living the problem is when someone is steering me into an investment scheme thinking more about his commissions over my investments. As far as I'm concered if I went to any investment broker be it an insurance person or otherwise if he earns commissions on what he's selling me I look for the door. I would rather pay the guy x amount for his time and then question what his commissions are after that.

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