Is This A Good Deal???

[cabinetman]

This came in our junk mail (maybe that's where it should go). But in reading this the details are that if you live past your term that you contract for, YOU GET ALL YOUR MONEY BACK. If you should die within the period, the full award goes to a beneficiary. It does sound like a win/win (for someone else if you die). Why don't they just call it Death Insurance.

So in getting your money back, they have made money off your premiums, and all you really didn't have a chance to make was any interest or investment opportunity. Is that it, or am I missing something else?
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[Stormbringer]

Hold out for JS's reply.

[gsmittle]

I wonder how stringent the health requirements are....

g.

[Pappy]

Does sound good, but they are in the business to make money. Got to be something in the fine print.

[cgallery]

Those rates are already high and it doesn't say those are the rates for ROP coverage, it just says they offer ROP coverage.

[Uncle Cracker]

Those rates are already high and it doesn't say those are the rates for ROP coverage, it just says they offer ROP coverage.

Exactly what I was going to say. Beware anything from an insurance company that sounds like a free lunch.

[Dale In Corona]

You'd really have to read the fine print of the policy to find the real loop holes. Having recently lost three relatives (therefore having had some recent experiences dealing with life insurance claims) I can tell you that most life insurance policies are FULL of exclusions that prevent them from paying off, even in the event of a natural death. Be very careful.

IMO if what you want is financial security for your family, forget the "too good to be true" looking life insurance polices and open a Roth IRA. Make the same monthly contributions to the Roth that you would have paid in premiums to the policy. Sure it might not pay off a million bucks if you kick it before your next birthday, but with the way these screwy health insurance companies manipulate the policies, the health insurance might not pay off either. At least with the IRA they would have something


Dale

[radhak]

These are regular term life rates. The Return Of Premium (ROP) rates will be many times these (I have even seen 10x the term rates ).

I remember that even a hardened insurance salesperson had blushed when I asked about the usefulness of those ROP plans.

The only type of life insurance that makes some sense is the term life where you pay money monthly and forget about it with the hope that you family never has to use it. Whether they do pay out in case of death, is up in the air.

I have one such, and have my fingers crossed that the LOML will never need to curse my stupidity for paying them whatever i end up paying.

[Russianwolf]

ROP policy

I pay in let's say $300/month for 10 years. That's $36000.

If I don't die, they return my $36000? Meanwhile they have been using my money to earn interest that will total something like $3600 at 2% annual. Why don't I just go ahead and write them a check and save the trouble of chasing them for it?