Life Insurance Question?

Question

What are the statistics of how many people have life insurance, and die at an early age?

I want to know out of the 250 million people in the US, how many people die unexpectatly, not of natural causes..

Cause lets say 1 million people die in a year out of the 250 million,,,, then thats less than one percent!

1,000,000 into 250,000,000 = only .004 percent!

So, thats inline with getting hit by lightning, or winning the lottery....

Sounds like life insurance is a waste?!

but 70% of how many? I can't find this answer anywhere! I think it's done on purpose, so we the public have no idea. Insurace companies will only allow your policy at a decent rate if your heath checks out. Otherwise they say NO! Obviolusy it's not as bad as they make it seem, scaring people into investing for the rest of thier lives, as if they were idiots, not knowing how to invest on thier own. Look at the profits margins of the most successful insurance companies. Its' in the Billions,, that's how we'll they are doing,..

You say 70% of the people die without insurance, does that include of natural causes? If it does, I want to konw what percent of parents die, while thier kids are under the age of 18?

Answer 1

First, You don't care what insurance company make, you do need to care yourself cover, than where to buy and what to buy? if you buy VUL, than you on your own, buy whole life when you young, and buy from mutual company, so that you will get very good dividend for life, the more you live longer, you will have the most money from insurance,
For example, if you buy one of the mutual life company 10 payments whole life ( you only pay 10 years) when your in 1 year of age, you pay $300 a month for 10 years ( Total $36000), you will have death coverage for $340,000, after 10 years, your account cash value will have $39,000. mean you got free insurance from this company, because you only paid $36000 for 10 years, your obligation was done, and your cash value not going to stop there, you account will get dividend each and every years for you life time, you can have one million cash value in account when your in 60 years of age, assuming your not loan any money during that time, policy will mutual in 100 years, that time you will have total death policy of $10 million, what do you loss? who make money? this money have no probate, no tax, no law sue impact, no stock market loss, why can make that kind of return, it only one answer, because you buy from mutual life insurance company, what they make, what you get all from them, so who say don't invest it in life insurance.....
Do you want to exchange $36,000 in to 10 million???


** I am not a life insurance agent, I do agree most of the life insurance not a investment tool, but I sure know most of the people not know all type of insurance very well either, If the type of insurance that can cover you family life of financial plus you can earn more money ,than why not?

Answer 2

If you have the thousands of dollars needed to finance a funeral and future living expenses (including mortgage, tuition, car repairs, maitenence for the house etc.) for your family--completly tax & probate free, then by all means, no, you dont need life insurance. But even the wealthiest of people around carry life insurance. One reason is because they understand that it is NOT an investment for a financial return like dividends or capital gains. It is an investment if peace of mind for your family.

You cant in any way compare the population & death with getting hit by lightning or winning the lottery! There is absolutely no correlation to them. Death is an absolute certainty! The only variable is time. Lighting and the lottery are total random events.

Yes, it would be great if you could have all of that money in place before the time of death. But the reality is most dont. That is what insurance is for. I would hate for someone to read your post & think that it is true & they drop the insurance they have to start investing it as a life insurance policy. What happens if they die before they reach the goal amount? What about all the taxes you pay for investing & they pay for inheriting? Insurance is to fill in the gap that they have not. When the person dies without having coverage when needed. Since no one knows when death will occur for them, they carry insurance until then. Maybe once that goal is achieved, you could drop it (I wouldnt). Is your family taken care of TODAY if something were to happen?

Francis:
insurance is not supposed to be considered an investment. All the number crunching in the world will not change that fact. Its like saying you can get much more fiber in your diet by eating whole wheat than drinking water. And even more by eating bran. Where as it is true, its not a good comparison because water is not meant to be a fiber food. And I suppose you also have a completly risk, tax, & probate free way to invest that if someone died tomorrow, their family will be taken care of?

Sad soul:
you are. You cut & paste the exact same comment to everything you post, regardless of the question! Everybody, look up his posts. Doesnt matter what the question is (this one is no exception) he posts the same answer. Someone asked about car insurance one time & posted your hatred of whole life.

Wendy:
I realy like what you said. Makes it worth while.

Answer 3

Like with any insurance, what you are paying for is peace of mind.

Statistics don't mean squat when it's your family that you are protecting. People die of natural causes, too. Every day. I carry life insurance because if something were to happen to me I'd want my husband to be able to get some help taking care of our son and our home. He carries life insurance so we would not have to struggle if something happened to him - suddenly or not. We could keep our home, and our son could go to college, and I'd be able to work part time so our son would have me where he needs me. It's well worth the money to us. Maybe not to you - fine.

I agree that life insurance should not be used as an investment the way you use mutual funds as investments. It is, though, an important part of your financial plan. There is no risk in life insurance. You WILL die. Everyone does.

To the person who said that you don't get the cash value - that's not always true. I'm assuming you have a Universal Life policy. With one type of UL the cash value is part of the stated death benefit, as you described. There is another type, though, that adds the cash value to the death benefit.

I never enjoyed selling life insurance, but I recognized that I was helping protect their families. I'll tell ya, if I had to go to a funeral it felt a little better walking in with a check for the family. That didn't happen every month of the 15 years I spent as an agent. But I remember every single death claim and every family, and I remember the relief on their faces knowing they at the very least had the financial breathing room to get themselves together. And I remember lots of phone calls where I had to tell an inquiring grieving person that there was no life insurance.

Peace of mind...

So, if you think it's a bad deal I understand. I just don't look at it that way.

Answer 4

Life insurance is a waste. I dont know that statistics of people dying etc etc. But, insurance is a waste because you only get the money when you die. And also, the money you put into it can actually pay for your own funeral. And when you pay per month, and you need money, they can lend you money. They lend you YOUR MONEY. And they get interest off of that. That is a dumb move to borrow your own money. But, sometimes you are stuck and I understand. So, I suggest you dont invest your money in there. You can put money away every single month and get a return. With insurance, you put money away every month. Then when you cancel the policy, you get less then what you put in. They took your money and invested it to get rich. And when you want your money back, they punish you and give you less. My dad did this and paid 18k for 10 years. They in turn gave him 14k back when he didnt want it anymore. Awesome deal ha? And that 18k can be worth alot in the bank if it was put into a savings bank with compounded interest. But they wont invest their money there. They would do other things with it that makes more money for them. As a financial institute, they would be stupid to put it in a savings bank.
To be honest, it was a waste because 10 years would have been what for interest? Even at 3% uncompounded, it would have been 30%, giving my dad $5400. On top of that 18k, he would have gotten $23,400 back. He lost $9,600. And thats not even compounded interest. So, he lost over $9,600 dollars. And if it was mutual funds, even if he got 5% (which is very consesrvative), that still would have been $9k, giving him $27k. Thats an even bigger difference, so it would show that he lost $13k. They took half of his money already. Imagine if I figured what it would be compounded.
What you are saying is correct Deep, but on average it only costs about 5-6 grand for a funeral. Not the 20 or 30 thousand everybody thinks. And it is alot of money, but its not like a years wage or something..If he invested 2 years just like he did with his insurance company, ..with interest...he could have gotten that taken care...He paid 153 a month....1836...Two years would have been 3672. and with interest...he would have taken care of his own funeral....it might be a bit over two years...but hardly the 10 years he paid ...Im not interested in the money..But what they do is an extreme rip off....They do say that..you get your deal and we get ours...In that time you are covered, so...I guess I have to agree to some degree...If not, ...then we could have cancelled anytime......Im not completely right...but I dont think im wrong either...
There is one point that I really have to make. Insurance companies will get out of paying if they can find a way. I have seen it happen, have heard it happen, and nearly got ripped off by Metropolitan Insurance Company.

Answer 5

This is for Francis. Imagine what would have happened if your dad had died the second year he had the policy. How much would the face amount paid your mother? Would you feel the same way if that had happened. The return would have been much greater than any bank account. And you know what, it could have happened. People die every day that were young and had their whole lives ahead of them (or so they thought). It is a gamble I am not willing to take for my family.

Answer 6

70% of the people in the US who die, die without life insurance. I guess those are the people who feel life insurance is a waste. It certainly won't cover you if the policy has lapsed! Or hasn't been purchased.

You'll have to look up the rest of the stats you want yourself!

Answer 7

Yeah, you can go based on statistics here. And it is 100% your decision. But just like the lottery, it DOES happen to someone. I would hate to have a small child/young family, die, and they have to struggle from now on just because I didn't want to spend $10 a month for peace of mind.

Answer 8

Its not a waste if you die, whether naturally or accidently