Life Insurance

There are two different types of policies that you can purchase:

• whole life
• term

Of the two, term is better...

However, no matter which policy you select, each policy has been carefully designed for the insurance companies to make more money then they pay out.

In other words, the insurance companies try to get you signed up for life insurance as soon as possible, targeting young families with children.  Then, they expect you to live longer than the actuary tables predict you will live.

The longer you live, the more money the insurance companies make.  If you are older, the premiums increase and if you have an illness, the premiums increase.

Their data also shows at what age you will probably acquire a serious disease.  The data is based upon large numbers and they do not really concern themselves with the exceptions to the rules.

What happens with life insurance is that you typically pay in all that you are scheduled to get back.  In the meantime, these insurance companies invest your premiums into a mutual fund and make even more money.

The insurance companies LOSE money the sooner you die after your probationary period.  Even then the fine print has exclusions to cover early deaths.

The way to beat the insurance companies is to play the same game that they are playing by telling yourself you will probably live longer than the actuary tables indicate that you will live.  Based upon that knowledge, you take the same money you were willing to pay the insurance companies and invest it into a mutual fund yourself.

Now you are earning the same amount of money yourself that the insurance company would have been earning on your money.