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Is Life Insurance A Big Rip-Off? |
By:
Jim Russo |
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Is Life Insurance a Big Rip-Off?
Jim Russo
Are life insurance companies taking advantage of people? Are they overcharging with their premium rates? Is life insurance simply unnecessary evil? These are questions that most of us have asked.
First, we can probably assume that you and I agree that it is difficult to defend any large corporation. If we accept that almost as a universal given then the real question you and I need to ask ourselves is, are insurance companies giving us a fair exchange for our premium dollar?
It does not take much common sense to realize that most insurance companies could do what they do a lot cheaper but that does not take away from the fact that for most of us life insurance is an intelligent purchase. In its simplest form life insurance takes the pooled money of a large group and uses the proceeds to keep individuals from financial hardship. Although insurance companies typically do better then individuals that does not automatically mean that it is a bad deal for you.
The best perspective for us as consumers is to focus less on how much profit the insurance companies are making and look instead at how we can profit from the situation. There is no doubt that in many, many cases individuals do profit enormously.
Even though the typical way of profiting from a life insurance policy is for someone to die nevertheless, once we get past the selfish jokes it is the individual with a mature and rational love for spouse and family that makes the purchase anyway.
For the average person is probably to say that it is usually in the context of marriage and a family that we talk about and consider the purchase of a life insurance policy. While most families to have two or more sources of income it is still true that because we live or one each source of income in the absence of one source of income through death will still work a financial hardship one the other.
As with any purchase when we are dealing with individuals we frequently come out ahead as opposed to dealing directly with a cold and impersonal corporation. In an age when the average consumer is much more sophisticated about their purchases the overwhelming majority of people seek out local independent agents for all of their Insurance purchases. Simply remember that while most agents are only motivated to find you the cheapest price because of their desire to earn a decent living it are still wise for you to compare the offerings of two or more agents against the authors.
As to whether life insurance is a big rip-off I guess the answer depends on your point of view. Yes, many insurance companies do make insane profits from year to year but, on the other hand, it's very difficult to turn your back on the concept of sometimes only paying a few hundred dollars in premium payments in exchange for collecting hundreds of thousands of dollars from an insurance company.
More insurance articles at http://life-health-dental-insurance.com/ an independent insurance site . Need info for you? http://life-health-dental-insurance.com/free/click.php?id=6) Life Insurance Quotes - Local You can get a http://www.uberarticles.com/?id=25426&b=79 unique content version of this article.
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Article Source: http://www.statssheet.com/articles/article61413.html |
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