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Is life insurance an asset for issuer?

Updated: 9/18/2023
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13y ago

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In a funny way of looking at it, I'd have to say yes. If you take a whole life policy, say from age 25 to age 65, at age 45 the cash value is about 1/4 of the face amount. At age 65, the cash value is about half of the face amount. So, a $100,000 whole life at age 25 has about $25,000 and at 65 about $50,000. At expiration, "whole life" 96, the cash value is $100,000. If you calculate the amount of money you have paid into the policy at those 3 stop points, 25 45 n 65, you can see that it's really an asset for the issuer.

Also, a few years ago I read that the insurance companies can invest YOUR CASH VALUES into investments that the insurance company deems viable and profitable. That money is not returned to you. Again, my first statement above.

My opinion is that cash values are no more than an overcharge. Proof? compare $100,000 term and $100,000 whole life premiums and you'll see. Keep comparing $100,000 participating policy and you'll really see how the issuer profits.

I reiterate: in a funny way (by design, actually) the answer has to be yes. Read Norman Dacey, Jane Bryant Quinn, Venita Van Caspel, and all the great financial geniuses and read what they say about BUY TERM AND INVEST THE REST.

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