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What the Life Insurance Companies DON’T Want You to Know

7/12/2017, noon | Updated on 7/12/2017, noon
You can win if you do one thing right! Here’s the secret of winning the game of life insurance, it’s ...
Henry Benjamin

What the Life Insurance Companies DON’T Want You to Know

By Henry Benjamin In case you didn’t know, life insurance companies make lots of money. Most of the time they win the game of life insurance. What does that mean? Let me explain. Most people pay their insurance premiums for 5, 10 or 20 years and then let the policy expire or lapse. The insurance companies know this and that is how they win every time. Let me give you an example of how they win. Scenario 0ne: Let’s say you purchased a term insurance policy at age 40 with an annual premium of $892.00 for $250,000 worth of coverage. You pay your premiums faithfully for 20 years. Now at age 60 the insurance company jacks your premium up to over $13,000 a year. So of course what do you do? You drop the policy. Again they win and you lose. After, all they collected nearly $18,000 from you and they didn’t have to pay out on any claims. Scenario Two: Let’s look at another case Scenario: A woman age 43 with a $500,000 permanent life policy paying premiums of $2,500 per year. At age 86, 43 years later she would’ve paid $107,500 in premiums. If she died that same year at age 86, her family would receive $500,000 tax-free. That’s a net gain of $392,500, that’s a ridiculously high rate of return that simply cannot be matched by any other safe guaranteed predictable financial instrument. The wealthiest people are usually pretty good at math. They’ve crunched the numbers and they know that life insurance delivers some of the best returns and is also one of the safest financial instruments you can buy period. Before you buy any kind of life insurance, think about why you’re buying it. Are you protecting your family in case of an early death? Have you taken on additional debt that requires you to provide coverage? Are you looking to leave an inheritance? You can win if you do one thing right! Here’s the secret of winning the game of life insurance, it’s very simple: DIE WITH YOUR POLICY IN FORCE! To avoid being a part of the insurance game seek advice from an agent who understands the process. Call Henry Benjamin your Allstate Agent at (773)723-0400. Disclaimer: “The following is a guest column, submitted to Citizen Newspapers. Citizen Newspapers is please to run selected guest columns to further educate our readers. Citizen Newspapers provides these columns as a service to our communities. Citizen Newspapers does not endorse or recommend any services or products suggested in our guest columns, and urges all readers to research suggested products and make wise decisions.”