Betting, Gambling, Guessing & Winning At The Life Insurance Casino

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THE TRUTH ABOUT LIFE INSURANCE

THE SAD NEWS…WE’RE GOING TO DIE! IT’S 100% CERTAIN.
NOW THAT THE BAD NEWS IS OUT OF THE WAY…

LIFE INSURANCE IS THE ONE INSURANCE BET YOU CAN WIN FOR YOUR LOVED ONES
OR BUSINESS CONCERNS AS LONG AS A LIFE INSURANCE POLICY IS IN-FORCE AT DEATH.
Just to be fair, you might collect on your health, or dental insurance and yes there are property and casualty claims, which do occur.

Purchasing life insurance is a BET, a GAMBLE,  and a GUESS all at the same time,
against a well-defined financial risk and need for cash that only life insurance solves best.

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GAMBLING AT THE LIFE INSURANCE COMPANY CASINO AND WINNING!

Death is an inescapable fact of life.  

The insurance company CASINO knows with very good accuracy HOW MANY people will die in a given year, NOT WHO will die.  They are the house.  They are the casino.  They know the odds.  This is who you are betting against and they’ve figured this out very well that you’re likely to be around for a long period of time and you’re not going to die so soon.

HERE’S HOW YOU WIN THE LIFE INSURANCE BET!

The only life insurance bet you want to win is a BET that pays out after a long life with a permanent life insurance policy in-force no matter how long you live.  This way you are protected against both a short life and a long life.

Purchase term life insurance and you’re BETTING only on a short life, not a long life.  This is a BET you certainly don’t want to win.  I want to emphasize term life insurance with the right insurance company can still be part of a winning strategy.  Why?  You can exchange your term for permanent life insurance without any medical underwriting allowing you to BET on a long life.

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WHO WINS WHEN A LIFE INSURANCE POLICY IS NOT IN-FORCE?  THE LIFE INSURANCE CASINO!
WHO WINS WHEN A LIFE INSURANCE POLICY IS PAID TO LOVED ONES OR A BUSINESS CONCERN?
NOT THE LIFE INSURANCE CASINO!  YOU DO!

THE BASIC CONCEPT OF MAKING A LIFE INSURANCE BET

Life insurance is pretty straightforward.  Here is the basic concept:  the more it costs the more likely it is to pay a claim.
Longer term rate guarantees cost more than shorter-term rate guarantees, and permanent life insurance costs more than term life insurance.

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THE FAVORITE LIFE INSURANCE BET

Term life insurance is usually the favorite life insurance bet especially early in life when premiums are very affordable for large face amounts of coverage.

Who can see a month from now, 6 months, let alone 10, 20, 30 or 40 years into the future?  No one and who cares it’s so far removed from life.  It’s meaningless until you arrive there, but it’s actually a finite period of time.   

The old line!  You don’t get something for nothing applies to life insurance especially term life insurance.

“IT’S UNWISE TO PAY TO MUCH, BUT IT’S WORSE TO PAY TOO LITTLE.  WHEN YOU PAY TOO MUCH, YOU MAY LOSE A LITTLE MONEY — THAT IS ALL. WHEN YOU PAY TOO LITTLE, YOU SOMETIMES LOSE EVERYTHING, BECAUSE THE THING YOU BOUGHT WAS INCAPABLE OF DOING THE THING IT WAS BOUGHT TO DO.  THE COMMON LAW OF BUSINESS BALANCE PROHIBITS PAYING A LITTLE AND GETTING A LOT, — IT CAN’T BE DONE. IF YOU DEAL WITH THE LOWEST PRICE, IT IS WELL TO ADD SOMETHING FOR THE RISK YOU RUN. AND IF YOU DO THAT, YOU WILL HAVE ENOUGH TO PAY FOR SOMETHING BETTER.”

John Ruskin – British Philosopher and Social Thinker 1819 – 1900

We go through life BETTING and GAMBLING on many different situations including our careers, businesses, and investments, etc.  

One of the more important bets also falls into the category of life insurance and what bet do you want to make?  The younger you are, the smarter the decision to bet on a long life. The odds are in your favor! This is how you can make a WINNING bet with life insurance.      

When you buy and bet with term life insurance, you exchange your years for low premiums with the likelihood you won’t die based on your average life expectancy.  Who wins the life insurance casino?

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The insurance company is betting you will still be living when the rate guarantee ends, and your bet only pays off if you die.  As stated above, I don’t think this is a bet you want to win, and it’s a bet you’re likely to lose because the odds of a longer life verse a shorter life are stacked in your favor.  Remember you are betting against the insurance company casino and they have been gathering data about mortality for well over a 100 years and they’re good at it.  They better be.  It’s their business.

Purchasing term life insurance for a period of time and not a lifetime, you’re betting 10, 20 or 30 years worth of premiums, while using up 10, 20 or 30 years of your life in exchange for a lower premium, can be a costly mistake especially when you purchase that next life insurance policy later in life upon realizing there are other important needs for CA$H that only life insurance solves best.  

REMEMBER!  In order to make another bet at the life insurance casino in the future, life insurance costs more each year and increases substantially as you age, plus you will have to health qualify again, which has its own share of issues,  

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I have seen throughout my insurance career.  A life insurance policy is purchased for one reason early in life and many times is used for another reason later in life.  Why?  The need for life insurance CA$H never goes out of style.  It just changes!

Why is term life insurance inexpensive in the early years of life because the chances of dying are not great?  However, does it happen?  Yes.  Is it likely to happen?  No.  If it was more likely to happen, premiums for term life insurance would be much higher because the risk would be much greater to the insurance company.

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DON’T MAKE A BET WITHOUT KNOWING THE ODDS!

DO YOU WANT TO KNOW WHAT THE ODDS ARE?

THIS WILL HELP YOU WIN THE BET AT THE LIFE INSURANCE CASINO.

Making the right life insurance bet!  Do you want to guess or do you want to win?  The insurance company casino will give you the opportunity to win at life insurance as long as you make the right bet.    

Insurers look to actuaries who calculate life in terms of mortality to determine your life expectancy.  This information and various risk factors are used to determine whether to offer you life insurance coverage and at what premium they will charge you.           

They are in the business of evaluating risk and taking your bets for discounted life insurance dollars to solve a financial problem that only life insurance solves best.

Why not consider the same odds the insurance company is using when considering the purchase of life insurance?  This is the life insurance bet your making against your life expectancy.  You can guess how long you will live or simply bet on a long life.  To demonstrate this point for a specific age, see “What Is Your Life Expectancy?  You’re Likely To Live Longer!”

When you decide on the type of life insurance keep this in mind and consider the probability of living to your life expectancy and beyond?  Now that you know the odds you can BET accordingly!

THE LIFE INSURANCE CASINO IS A LITTLE DIFFERENT THAN YOUR REGULAR GAMBLING CASINO

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Why?  You’re not allowed to sit down at the life insurance casino and make a bet UNTIL YOU GO THROUGH THE EVALUATION AND QUALIFICATION PROCESS based on your RISK factors.  This is called UNDERWRITING and it determines WHAT IT WILL COST YOU to make a BET for the life insurance face amount (i.e., $1,000,000) and the type of life insurance (term or permanent life insurance) you want to purchase.  What it will cost you = your bet = your premium.  Once your premium rate is determined the life insurance casino will accept your bet for the face amount and type of life insurance policy you were approved for with them.

However, not everyone will be able to sit down and make a bet because they represent a greater risk to the insurance company casino.  This is where my professional services help put the pieces of your puzzle together and find the right insurance company casino that will allow you to place a bet with them.

Depending on your risk factors some will have to pay more to make a bet for the same potential payoff and some will not be able to make a bet at all because the chances of dying are so great no insurance company will want the BET.

Consider if you have a hazardous occupation, participate in an extreme sport, experience a significant change in health or are diagnosed with a dreaded illness, smoke, excessive drinking, drug history or consider travel to a foreign country in turmoil.  You will be charged more to sit down at the table and gamble at the insurance company casino.  Remember, THE GREATER THE RISK, THE BIGGER THE BET (THE PREMIUM) YOU WILL HAVE TO MAKE FOR YOUR LIFE INSURANCE.  

Learn more in “Living The Risky Life – The High Life Insurance Price $$$ For A Rush!”

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You can literally buy term life insurance anywhere and everywhere.  It is promoted in many situations as all you will ever need in life insurance.  You become more convinced of this idea that life insurance CA$H needs are only for a period of time, not a lifetime.  Yes, it will give you the peace-of-mind and financial security for a  period of time, just not a lifetime.

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Contrary to what financial experts write about and tell you there is no need for life insurance LATER IN LIFE.  Why?  You’ll have assets, investments, retirement plans, and life insurance won’t be required after the kids have graduated from college and the mortgage has been paid off.  Life insurance should only be purchased for a period of time with term life insurance.

Permanent life insurance is a:

(1) Rip Off
(2) Bad Deal
(3) Lousy Investment
(4) Waste of Money, or you can do better with your own money, buy purchasing TERM and INVESTING the difference.

I would like to see 20 people who invested the difference for 20 years or more and verify the results.  Most people simply spend the difference.  

OR

Consider you have built wealth in assets that aren’t liquid such as bricks, stone, and steel, or need to be retained for a long period of time to achieve maximum value, or you have a great portfolio of investments.  Do these same financial authorities and commentators recommend that these assets are sold at an inappropriate time, which may result in a loss?  Remember 2008 when real estate decreased in value and investments headed south?

The advantage of life insurance when it comes walking in the door lets your loved ones buy valuable time to make appropriate financial decisions regardless if assets / investments are up, down or sideways.  How much peace-of-mind and financial security will that provide them while making their lives easier at a very difficult time?

Estate Sales

I am sure you have seen a sign in the neighborhood that advertises an ESTATE SALE.  Sure inexpensive items can be sold off because family members don’t want or need the stuff and some money is better than donating or just throwing things away.  However, when possessions are more valuable and an estate sale is announced or there is an auction.  It should tell you there was not enough liquid cash left in the estate.  I wonder how many opportunities the deceased had to purchase life insurance throughout their lifetime?  Would life insurance (dollars) have made a difference?

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People Buy Into These Misconceptions And Realize These Life Insurance Financial Mistakes Later In Life

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If life insurance CA$H is only for a short-term need according to the financial experts and not a lifetime need, why can you…    

✓   purchase permanent life insurance to age 85?

   purchase a 10-year level term to age 80?

   purchase a 15-year level term to age 78?  

   purchase a 20-year level term to age 70?

   purchase a 25-year level term to age 65?

   purchase a 30-year level term to age 58?

Personally speaking why are my client’s having to rethink their next life insurance purchase now if there was no need for life insurance CA$H going forward as their 20-year level term life insurance policies are at the end of their rate guarantees and will terminate shortly?  I stated it earlier life insurance cost more each year as you get older and in your ’50s and ’60s term life insurance is no giveaway and permanent life insurance is much more expensive to carry a policy to age 90, 100 and beyond.

NOTE:  These ages can increase as insurance companies are always looking for a competitive advantage in the life insurance marketplace.

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✓  2 TO 3%

Most term life insurance ends before the life insured dies!  Do you know how many term life insurance policies on average result in death claims?  The statistics tend to vary from company to company and are not generally shared throughout the life insurance industry.

LIMRA (LIFE INSURANCE MARKETING AND RESEARCH ASSOCIATION) REPORTS ONLY ABOUT 2 TO 3 PERCENT OF TERM POLICIES EVER PAY DEATH CLAIMS.

✓  Yet 100% of all insureds who buy term life insurance will die!

Term insurance is very profitable to the insurance industry.  They receive your premiums, don’t have to give you anything in return for them and you take them off the hook before they have to pay a death claim.  THEY WIN!

✓  What is $204 Million?

The American Council of Life Insurers (ACLI) is a Washington, D.C. based trade association with approximately 290 member companies operating in the United States and abroad.  They reported in 2015 — $204 million was delivered EVERY DAY to beneficiaries of life insurance policies.

Life insurers have a long history of fulfilling their obligations to beneficiaries.  Companies act promptly to pay death benefits, usually within 30 days of receiving a claim.

For the families receiving these benefits after the death of loved one, life insurance proceeds represent the financial peace of mind and security that comes with knowing they can maintain their quality of life and still realize their hopes and dreams as life goes on….

Marc Maretsky Personal Insurance Services based in Beverly Hills, serves all of California and the United States.  I help my clients acquire life, disability, long-term care, and critical illness insured solutions, as well as enroll them into Medicare when eligible.

“No matter how fast technology changes our world and everything around us.  I believe the personal touch and a human voice are more important than ever.”

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