Let’s start with a single person. A 31-year-old man purchases a policy in which he is expected to pay $52,800 and receive $200,000 in return? There is no such thing as a complimentary meal. JUST TO BREAK EVEN ON THIS POLICY, the corporation would extort $147,200 from him!Learn more by visiting Miller Hanover Insurance
Not to mention paying brokers (who receive significantly higher commissions on entire life policies), underwriters, insurance fees, advertisement fees, 30-story towers, and so on. This isn’t even considering the discretionary and universal life insurance plans that appear to be so beneficial to your retirement. Then you’re going to put $52,800 into a policy that will make you wealthy, as well as pay you the $200,000 death benefit and cover the costs of the officers, employees, and fees? This has got to be a scam.
When you purchase a whole life insurance policy, the insurance broker has already estimated the likelihood of your death. What is the likelihood of that happening? Since it is a whole life (until death do us part) insurance policy, the answer is a resounding yes! This means that the insurance provider would have to shell out $2,000,000,000 if everybody kept their policies.) Two billion dollars, to be exact! How could they possibly defraud you? Perhaps no cash value will accumulate for the first five years of the policy (you may want to check your policy). It’s possible that it’s exaggerating the importance of the return (this is easy if the customer is not knowledgeable on exactly how investments work). Also, as you can see from my article on the Rule of 72, entrusting your money to someone else to invest can result in you losing millions! You see, you can put in $52,800, but that doesn’t account for the money you’ll lose if you don’t spend it yourself! This is true regardless of how well your agent claims the firm can invest your money! Simply put, they must get the upper hand on you in some way or they will go out of business!