The Secret To Winning At The Life Insurance Casino Or How The Life Insurance Casino Wins

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Do you want to win the life insurance bet?
However, most will not and here’s why?

When it comes to life insurance, if death is
100% certain and 100% of all insured’s will die…
Is life insurance a bet you can win?  YES!

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Do you want to know the SECRET on how to win
the life insurance BET at the Life Insurance Casino?

 

Do you think the Life Insurance Casino wants you
to know or will ever tell 
you how to beat the house?

Secret conversation
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Here is the secret on how to level the
ODDS, BET and WIN at the life insurance casino.

Unfortunately, most people LOSE the BET…
and the life insurance casinos aka companies want to keep it this way.

The “secret” isn’t about how much you pay, or what kind of life insurance coverage you buy, or what company you buy it from?

The secret is rather obvious and it works with all kinds of life insurance – term or permanent life insurance.

Here’s the secret.  DIE WITH YOUR LIFE INSURANCE POLICY IN-FORCE!

Winners, Losers Green Road Sign, Business Concept..

Winning at the life insurance casino means YOU (the insured / owner) coming out ahead not the life insurance company.  In other words, you WIN THE BET not the life insurance company.

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Your loved ones or business concerns gain because you bet correctly and won on their behalf!

Close-up of a 1 million dollar bank note
Roulette and piles of gambling chips on a green table in casino.  Man hand over casino chips  - bet.

Sounds easy and obvious, right?

Yet SO many people LOSE gambling at the life insurance casino with their life insurance.    

Why do so many lose this bet even though the secret is so simple and obvious?  

If death is 100% certain and 100% of all insured’s will die.  Insured’s lose the BET because their policies LAPSE BEFORE THEY DIE!

This can happen for a variety of reasons and some are actually valid and life insurance served its purpose even though the policy lapsed.   

The bottom line for all these reasons…and others…is that the insurance company casino doesn’t care WHY policies lapsed.  They’ve collected premiums for years, but they NEVER end up having to pay a claim on that policy.  In other words, they WIN and you LOSE.

And the profits the insurance companies make on all these lapsed and expired or cashed out policies actually SUBSIDIZE those BETTORS SMART enough to own life insurance and DIE with their policies in force.  

This is how you stack the odds in your favor of BETTING and WINNING at the life insurance casino.

TERM LIFE / PERMANENT LIFE

Life Insurance Policy Terms of Use Concept
Life Insurance Policy Terms of Use Concept

Is term life insurance a sucker’s bet?  Not necessarily!

Term life is not priced to be in-force for as long you live and the insurance companies know this yet billions and billions of term life insurance are purchased every year, which will eventually lapse.  Who wins the life insurance casino does?

For more info, see “What is Your Life Expectancy?  You’re Likely To Live Longer!”

On the surface, the only way to win the game with term life insurance is to do something you don’t want to happen.  Die before you’re supposed to and this is certainly a BET you don’t want to win and is not likely to happen when you consider the odds.  However, you can win the BET with term life insurance by having a good “escape clause” and exchanging your term life insurance for permanent life insurance before you lose the right to do so, and then hold on to the life insurance policy long enough to die with it in force.

Permanent insurance certainly costs more than term, and it should because it is priced to have a level premium and protect you for your entire life no matter how long you live.

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Here are a couple examples of the leverage life insurance
provides with reference only to the death benefit.

(1)  A 55-year-old male (preferred best non-smoker) purchases a $1 million policy with an annual premium of $10,990.  Assuming he lives to age 80 (average life expectancy) and has made payments of for 25 years or ($274,750) to age 90 – ($384,650) and to age 100 – ($494,550).  His loved ones or any designated beneficiary will receive $1,000,000 tax-free for a gain of ($725,250) at age 80 at age 90 – ($615,350) or at age 100 – ($505,450).  The policy and premium are fully guaranteed and issued by a multi-billion dollar company with high financial ratings that has been around for well over 100 years.

(2)  Let’s look at another example of a 43-year-old female (preferred best non-smoker) who purchases a $500,000 policy with guaranteed premiums for life at $2,862 a year.  Let’s say she lives to age 83 (average life expectancy) and has made payments for 40 years or ($114,480) to age 90 – ($134,514) and to age 100 – ($163,134).  Again at her death loved ones or any designated beneficiary receives $500,000 tax-free for a gain of ($385,520) at age 83 at age 90 – ($365,486) and at age 100 – ($336,866).

Regardless of the favorable internal rate of return on the death benefit or even greater value achieved because the death benefit is received tax-free.  Did the insurance company WIN?  No, they lost both BETS, and remember, if either died sooner or lived to age 100, they both still WIN.

Now even if you think you can do better with your money, where would you put it without taking market risks to achieve the same tax-free lump sum result?  

How can the life insurance company casino do this?  

Insurance companies deal in the law of large numbers, collect premium dollars and pay claims.  They will invest your premiums and make money there, which helps their bottom line, but they don’t make money on policies that remain in-force and pay a death claim.  If YOU DIE WITH YOUR POLICY IN FORCE, the insurance company casino WILL LOSE money on that policy.  It is all the insured’s who BET, and DROP, LAPSE, or CASH SURRENDER their term or permanent life insurance policies that subsidize the insured’s who are able to DIE WITH THEIR POLICIES IN FORCE.  

Consider term life insurance that cancels for whatever reason, term life insurance isn’t exchanged for permanent life insurance, or you outlive the term rate guarantee.  Even if its permanent life insurance doesn’t mean the policy will remain in-force.  The insured / owner starts tapping cash values out of their permanent life insurance without fully understanding the consequences of outstanding loans and interest impacting the future performance of the policy will many times surrender the policy for the remaining cash values.  The insurance company would love to cash you out of the bet for the remaining cash value because they won’t have to pay a death benefit.  What about a permanent universal life insurance policy and the current assumptions intended to carry the policy long into your future change and without paying increasing premiums the policy lapses?  Who wins?  The insurance company.  They don’t t have to pay the death benefit!

LOOK AT IT LIKE THIS!
The losers pay the winners, and the house keeps the difference.
It sounds crazy, but it really is that simple.

Loser Winner Buttons Show Gambler Or Loser

Here’s the bottom line:  TO BET AND WIN AT THE LIFE INSURANCE CASINO, you have to own a policy that you’ll be able to KEEP until you die and that is permanent life insurance.  Now for most of us, that means a policy with an affordable, predictable, and guaranteed level premiums for life.  In short, buying a life insurance policy with guaranteed premiums could be one of the smartest financial decisions you’ll ever make.

Yes, you can win the BET at the life insurance casino!

A NEW PLAYER SITS DOWN AT THE TABLE / LIFE SETTLEMENTS

There are legitimate situations where you can’t afford the premium or you don’t have a need for the life insurance and your health must be marginal or declining.  You can consider selling the policy in a life settlement, and get money for it, which can benefit you.  However, the financial institution who purchases your policy will end up winning at the end of your life because of its value as an investment to them. They will end up making money and winning the BET!

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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