- 9,892
- 188
Twisted Joke gift.
- 9,892
- 188
Twisted Joke gift.
elijahbrohammed
Banned
- 2,841
- 10
That's a demented gift.
elijahbrohammed
Banned
- 2,841
- 10
That's a demented gift.
- 408
- 12
Hmmm without seeing the policy details its hard for me to make something out of this but most likely its a waste of money
The only way to profit from life insurance is by selling the policy of someone 65+ to a pool of investors or investor
There are hedge funds and other investor funds that will pay the premium (about 60K) a year for 2 years (Insurance Co.s now require the policy to be held for 2 years) and then will buy the policy for around 200K. It makes fiscal sense for them, since you figure on average someone will live about 15-20 years after the policy is taken out, so about 600-1.2M paid out in premium on a 3-5 Million dollar policy will yield a hefty return for them.
Warren Buffet buys millions worth of these policies a month. Insurance companies are often so profitable because on average the policy never matures, people decide they don't need it/ need the money they're paying for premiums and stop paying the policy, voiding it. So, all those premiums were essentially thrown out the window. Insurance Cos don't like people actually redeeming policies but that's because there's actually someone who will collect on the policy, as opposed to them reaping premiums and never paying anything out. They put all that cash into bonds, a lot of them high yeild (junk) that yield 15% sometimes (heck even muni's are yielding 5-7% in some cases) so when you hold 1B in premiums, 5% on that is a LOT of money.
The only way to profit from life insurance is by selling the policy of someone 65+ to a pool of investors or investor
There are hedge funds and other investor funds that will pay the premium (about 60K) a year for 2 years (Insurance Co.s now require the policy to be held for 2 years) and then will buy the policy for around 200K. It makes fiscal sense for them, since you figure on average someone will live about 15-20 years after the policy is taken out, so about 600-1.2M paid out in premium on a 3-5 Million dollar policy will yield a hefty return for them.
Warren Buffet buys millions worth of these policies a month. Insurance companies are often so profitable because on average the policy never matures, people decide they don't need it/ need the money they're paying for premiums and stop paying the policy, voiding it. So, all those premiums were essentially thrown out the window. Insurance Cos don't like people actually redeeming policies but that's because there's actually someone who will collect on the policy, as opposed to them reaping premiums and never paying anything out. They put all that cash into bonds, a lot of them high yeild (junk) that yield 15% sometimes (heck even muni's are yielding 5-7% in some cases) so when you hold 1B in premiums, 5% on that is a LOT of money.
- 408
- 12
Hmmm without seeing the policy details its hard for me to make something out of this but most likely its a waste of money
The only way to profit from life insurance is by selling the policy of someone 65+ to a pool of investors or investor
There are hedge funds and other investor funds that will pay the premium (about 60K) a year for 2 years (Insurance Co.s now require the policy to be held for 2 years) and then will buy the policy for around 200K. It makes fiscal sense for them, since you figure on average someone will live about 15-20 years after the policy is taken out, so about 600-1.2M paid out in premium on a 3-5 Million dollar policy will yield a hefty return for them.
Warren Buffet buys millions worth of these policies a month. Insurance companies are often so profitable because on average the policy never matures, people decide they don't need it/ need the money they're paying for premiums and stop paying the policy, voiding it. So, all those premiums were essentially thrown out the window. Insurance Cos don't like people actually redeeming policies but that's because there's actually someone who will collect on the policy, as opposed to them reaping premiums and never paying anything out. They put all that cash into bonds, a lot of them high yeild (junk) that yield 15% sometimes (heck even muni's are yielding 5-7% in some cases) so when you hold 1B in premiums, 5% on that is a LOT of money.
The only way to profit from life insurance is by selling the policy of someone 65+ to a pool of investors or investor
There are hedge funds and other investor funds that will pay the premium (about 60K) a year for 2 years (Insurance Co.s now require the policy to be held for 2 years) and then will buy the policy for around 200K. It makes fiscal sense for them, since you figure on average someone will live about 15-20 years after the policy is taken out, so about 600-1.2M paid out in premium on a 3-5 Million dollar policy will yield a hefty return for them.
Warren Buffet buys millions worth of these policies a month. Insurance companies are often so profitable because on average the policy never matures, people decide they don't need it/ need the money they're paying for premiums and stop paying the policy, voiding it. So, all those premiums were essentially thrown out the window. Insurance Cos don't like people actually redeeming policies but that's because there's actually someone who will collect on the policy, as opposed to them reaping premiums and never paying anything out. They put all that cash into bonds, a lot of them high yeild (junk) that yield 15% sometimes (heck even muni's are yielding 5-7% in some cases) so when you hold 1B in premiums, 5% on that is a LOT of money.
- 1,477
- 75
i work for state farm and we are allowed to sell both the agent just needs a series 6 license or soemthing like that.
anyway it isn't a complete waste of money. one of the benefits of purchasing insurance on a kid is that it gaurantees insurability. for example, god forbid if your child was ever able to get some sort of sickness in the future it would prevent her from purchasing additional life insurance were it not for this policy. now this may not seem like a big deal, but life insurance is always a great thing to have that many people don't ever get.
it doesn't only help restore lost income it also protects your assests in a way, because say your child went on to have children and then died. well that life insurance policy would also benefit your grandchildren because they would then not have the burden of paying certain estate taxes that come with an inheritance, they wouldnt have the burden of funeral and debt expenses, and they would have a trust to pay for college.
now back as for the policy it isn't worth $1 mil when she turns 18 it is worth however much interest the premium payments have accumulated. BUT not since the policy accumulates cash value it can also be used as way for your child to get some low interest loans in case he/she wants to go to college. furthermore, there would be no credit check to get the loan or any questions asked, because even if she never paid back the loans as long as the policy were in force they would get paid back when he/she dies.
- 1,477
- 75
i work for state farm and we are allowed to sell both the agent just needs a series 6 license or soemthing like that.
anyway it isn't a complete waste of money. one of the benefits of purchasing insurance on a kid is that it gaurantees insurability. for example, god forbid if your child was ever able to get some sort of sickness in the future it would prevent her from purchasing additional life insurance were it not for this policy. now this may not seem like a big deal, but life insurance is always a great thing to have that many people don't ever get.
it doesn't only help restore lost income it also protects your assests in a way, because say your child went on to have children and then died. well that life insurance policy would also benefit your grandchildren because they would then not have the burden of paying certain estate taxes that come with an inheritance, they wouldnt have the burden of funeral and debt expenses, and they would have a trust to pay for college.
now back as for the policy it isn't worth $1 mil when she turns 18 it is worth however much interest the premium payments have accumulated. BUT not since the policy accumulates cash value it can also be used as way for your child to get some low interest loans in case he/she wants to go to college. furthermore, there would be no credit check to get the loan or any questions asked, because even if she never paid back the loans as long as the policy were in force they would get paid back when he/she dies.
- 29,014
- 4,130
Sounds like the logical thing would be to take out the policy on yourself and your wife. This would enable her (daughter) to receive $1M if you and/or your wife were to perish.
- 29,014
- 4,130
Sounds like the logical thing would be to take out the policy on yourself and your wife. This would enable her (daughter) to receive $1M if you and/or your wife were to perish.
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